Southwest Airlines Motivational Profile
A motivational profile can provide insights into whether a company is doing the right thing or requires improvements. Although nearly every company proclaims its goal is to deliver exceptional service, research confirms that the service quality of many corporations is below consumer expectations. Southwest Airlines has created a competitive advantage through valuing employees’ needs as a strategy that motivates them to provide better customer service (Hallowell, 1996). According to Czaplewski, Ferguson, and Milliman (2001), Southwest Airlines was one of only two companies to place in both the top-10 most admired organizations and best places to work. Even though there are specific steps
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Financial Information for the Last Five Years Bankruptcy is the new solvency for America’s legacy carriers in the past five years. Deregulation, terrorist events from September 9, 2011, and the recent recession are likely culprits but inefficient business practices share in the blame. The growth of low cost carriers helped to push airlines such as Delta and United to file for bankruptcy and enter mergers with other floundering legacy carriers. The latest bankruptcy announcement comes from American Airlines, the last of the legacy carriers to file for Chapter 11 protection (De La Merced, 2011). Heavy debt, inefficient aircraft, and high labor costs are forcing American Airlines to restructure just to compete. Profitable airlines are increasingly dependent on consumer fees, fewer routes, and sold out planes to maintain a positive cash flow.
Background of Southwest Airlines Southwest Airlines has had its highs and lows while becoming the airline to watch. The Texas-based Southwest Airlines has taken risks and created a reputation for trendsetting and revolutionizing flying (Southwest Airlines, 2011). Most airlines cannot parallel Southwest’s success. The airline began flying through the airspace above Houston, Dallas, and San Antonio by means of three Boeing 737 aircraft. Today Southwest Airlines’
Southwest Airlines is a major US airline established in 1967 that services a multitude of cities in all 50 states and beyond. The company is known for its outstanding quality in providing services and it 's cost effective ticket prices to its many passengers throughout the nation. This airline is based in the southwestern United States, in the city of Dallas Texas, and due to the tremendous number of airplanes that it has and the timely service that it provides to its passengers, this airline services more US passengers than any other airline. This airline also has the largest fleet of planes of any economical or low-cost airline service in the world and employees more than 45,000.
Southwest Airlines Southwest is a major player in the airline industry, which employs nearly 35,000 individuals. According to an article, (Hollis, 2003), Southwest Airlines has taken a different approach to building interactively relationships with the company, with employees, and with its customers to ensure the success of the business. As a result, Southwest has sustained an enhanced growth and profitability when most airlines struggle to avoid bankruptcy. Fritz Petree, Senior Manager Career Development Services, states, “Southwest philosophy is to hire for attitude and train for skill” (Hollis, 2003, p. 2). Southwest has successfully launched Virtual
Today Southwest Airlines is the biggest domestic passenger carrier in the United States of America operating more than 3,400 flights a day. They provide service to 93 cities and 5 countries internationally. Last year Southwest Airlines, “Enplaned approximately 136 million Customers (About Southwest). The airline has grown since it’s first years flying out of Love Field in Dallas, Texas. In the beginning, Southwest provided flight service to only three Texas cities in 1971. One of Southwest Airlines’ early advertisements was a double page ad that ran in Dallas newspapers during May announcing their first flight on June 18, 1971 (Lusk). This advertisement introducing a new airline would soon revolutionize the airline industry and create the new category, of low cost carrier, to the world.
Southwest Airlines Co., established in 1971 by Rollin King and Herb Kelleher, began its operations with only three Boeing 737 aircrafts. It is headquartered in Dallas, Texas(Hawkins, Misra, & Tang, 2012). Southwest is well known as one of the largest low-cost carriers. With this strategy, the company has dramatically grown up and deeply rooted in the US airline industry. Now, Southwest Airlines Co. operates 633 aircrafts to 93 domestic cities and the highest number of passengers used Southwest Airlines to fly around U.S in Jan 2014 (Hawkins, Misra, & Tang, 2012). To accomplish more than 40th consecutive years of both profitability and competitiveness, Southwest Airlines Company is constantly trying to find the routes to differentiate itself from other domestic carriers (Hawkins, Misra, & Tang, 2012).
Southwest Airlines Co. began its operations in 1971 and has been serving the industry for the past 43 years now (Southwest Airlines, n.d.). It is the major domestic airline, and ranked number one in 2014 by the Bureau of Transportation Statistics (United States Department of Transportation, 2014). Back in 1971 the airline began its services in Texas in the cities of Houston, San Antonio, and Dallas. The company has been ranked as the nation's largest low cost carrier (Mergent, 2012). It offers the lowest fares, and has the lowest cost structure in the industry.
Southwest airlines began in 1971 using a strategy unlike any other airline at the time. Starting out in Texas, with only three planes, they flew between the Texas cities of Houston, Dallas, and San Antonio (Coulter, pg 250). Their primary goal was to get their passengers to their destinations, on time, at the lowest possible fares, and to provide a fun atmosphere for their customers. They focused on providing short-haul routes with fares that were competitive with driving. Today, Southwest serves 101 destinations across the United States, as well as eight additional countries, and operates more than 3,900 flights a day. (Southwest , 2017) They have achieved a record 44 consecutive years of annual profitability, while staying true to their goal of providing the highest level of customer service at the lowest fare. In 2016 they ranked number 1 in customer satisfaction according to statistics listed by the Department of Transportation, with and average passenger airfare of $149.09 one way trip. (Southwest , 2017)
Southwest Airlines (SWA) maintained a low-cost, low-price and no frills strategy. The small Texas carrier began as a concept, its business plan detailed on a cocktail napkin in 1971 and grew into the nation’s fourth largest airline. Known as an innovator with low operating costs, dominating smaller airports, with a humorous customer service, SWA saw its 40th profitable year in 2013. Like all companies, SWA underwent leadership changes in 2001, and said goodbye to the company’s founder in 2008. Unfortunately, the changes in leadership were not the only changes; the organization proceeded to alter their beliefs and activities.
Southwest Airlines Co. is an airline company that offers air transportation services within the United States and in international markets. The company operates within the airline industry that is highly regulated, technology intensive, labor intensive, and highly competitive (Southwest Airlines, 2017). Southwest Airlines operates a service business whereby the company offers a point to point air transport service to its passengers. Other than passenger transport, the company offers transportation services for pets and unaccompanied minors. The flights offered include short haul and long haul between various destinations within the United States and internationally. In 2016, the company’s operating revenues from international operations amounted to $383 million. A unique feature of the Southwest Airlines is its cost structure whereby the company focuses on cost discipline and uses one aircraft type to minimize costs.
Engaging the target market: Southwest Airlines attracts both budget-conscious customers and those who are looking to have an interesting travel experience. Oftentimes, these two targets overlap as one market. The flight crews are supposed to display a “Warrior Spirit, a Servant’s Heart, and a Fun-LUVing attitude,” which is intended to engage the flight crew with the
Since the late of last century, the business model of low cost airline represented by Southwest Airlines has been spreading all over the world, has influence and changed the framework and development of the world airline industry.
This proposal addresses the needed steps to be taken in order for Southwest Airlines to see continued growth in the airline industry. Southwest Airlines has been able to remain one of the most profitable airlines in the industry for an extended period of time. Even with the hindrance of the 2001 terrorist attacks involving airplanes and the U.S recession of 2008, Southwest has continued to see strong revenue growth. Meanwhile, other companies were experiencing major losses and in some cases folding. Southwest Airlines has capitalized on the company’s strength of being the top low cost
Southwest Airlines Company (Southwest Airlines or ‘the Company’ SWA) is a passenger airline that provides scheduled passenger and freight transportation services. The Company primarily provides scheduled services throughout the US and near-international markets. It is headquartered in Dallas, Texas and employs 48,000 people and serves over one hundred million customers annually (“Southwest,” 2015). Southwest Airlines has accumulated over forty years of revenue and is one of the supremely flown airlines in the United States of America (Dess, et al, 2014, p. C137). Recognized for dominating the national or domestic airline market, Southwest Airlines’ diligence has built an
The Company is committed to providing their employees with a stable work environment with equal growth opportunities. Creativity and innovation are encouraged for improving the effectiveness of Southwest Airlines. (The Mission of Southwest Airlines, 2011)
Southwest Airlines is a major passenger airline that provides scheduled air transportation in the United States and near international markets. For the 43rd consecutive year, the Company was profitable, earning $2.2 billion in net income (10K part 1 2015). SW started its service in 1971 with three Boeing 737 and as of 2015 has a total of 704 Boeing aircrafts. The company as of 2015 services 97 destinations in 40 states including seven near continental destinations. SW principally provides point-to-point service rather than the hub-and-spoke service provided by most other airlines. Southwest Airlines is a high-frequency short nonstop hauler; this is its diversification asset in the industry. The key component of its strategy has always been its low-cost structure. Moving forward the PESTEL-Analysis will be engaged to provide illumination into what makes SW a 43 times winner.
Southwest had an edge over its competitors because of its people and their people management. The culture practiced at Southwest ensured progress towards their primary goal of customer service and low cost. The HR programs at Southwest were based on the preserving the values and special culture of Southwest Airlines (SWA).