SOUTHWEST AIRLINES AND THEIR SUCCESS STORY!

A very productive and loyal workforce is a key reason for it’s success.

Such loyalty and productivity among the employees were brought by the way southwest’s Management treats them.

It recruits employees who work for a company they love, instead of those who demand simple paycheck at the end of the week.

Being sarcastic is one the key qualifications a person should need to even apply.

The employees are rewarded according to the feed back given by the customers.

MOREOVER THEY ARE ALWAYS READY TO TAKE RISKS AND CONQUER THE WORLD

These decisions have helped Southwest be flexible in the face of the recent decreases in airplane passengers caused by the 9/11 terrorist attacks and the world economic crisis.

FOLLOWING ARE THE STEPS TAKEN BY SOUTHWEST TO SAVE MONEY AND PASS TO CUSTOMERS THROUGH LOW FARES :

1.FLIES OVER 3100 SHORT AND POINT TO POINT TRIPS IN A DAY.

Thus adding more passengers per flight.

They have lower turn around times and a unique boarding process without assigned seating.

By providing lower affordable flying for passengers, this results in faster turnarounds and lower fares.

2.FAST TURN AROUND SERVICE

 The mechanics and management can substitute the aircraft and can reschedule flight crews or transfer mechanics in a timely manner. 

3.UNIQUE BOARDING PASS

4.PROGRAM TO HEDGE FUEL PRICES BY PURCHASING OPTIONS YEARS IN ADVANCE LONG TERM CONTRACT.

5.LIGHTER THE PLANES LESS THE FUEL.

EVERY MINUTE THING USED IS MADE OF SPECIAL LIGHTER FABRICS.

THEY DON’T EVEN CARRY MORE WATER IN THE PLANE TO REDUCE WEIGHT THEY ARE STRICT AND CAUTIOUS ABOUT THE WEIGHT OF LUGGAGES PERMITTED

6.IT HAS NEVER SERVED MEALS AND DOESN’T HAVE ADVANCED SEAT RESERVATIONS.

AND FLIES ONLY BOEING AIRPLANES.

Southwest is one of those airlines who are consistently earning profits despite the problems the industry is facing.

With such stability, the corporation is able to make decisions and adjust policies, which other heavily burdened airlines may not be able to imitate.

There are airlines who would not want to copy the Southwest Airlines model.

They pride themselves more on service and feel that because their service is better, they can charge a premium price on their tickets.

Also there are people who would still pay to fly with these airlines.

Recap: Following are the steps taken by Southwest to save money and pass to customers through low fares;

Flies over 3100 short and point to point trips in a day. Fast turn around service . Unique boarding pass Operate Boeing 737 for all its flight which simplifies the training process for employees and save time and manpower. Program to hedge fuel prices by purchasing options years in advance long term contract. Lighter planes as lighter planes use less fuel. It has never served meals, does not have advanced seat reservations, and flies only Boeing airplanes.

Credits: Images.google.com

A Presentation by Sravya Tanmayee

SRAVYA TANMAYEE, IIITDM-kancheepuram

during an intern by

Prof. Sameer Mathur ,IIM Lucknow

Thank you!