Southwest Airlines Co. is a major U.S. airline and the world's largest low-cost carrier, headquartered in Dallas, Texas. It was established in 1967 that operates Southwest Airlines and AirTran Airways to fly among three major Texas cities – Dallas, Houston and San Antonio. It is the biggest operator of the Boeing 737 in the world. Flight distances ranged from 190 to 250 miles and flight time were about 45 minutes. Today Southwest operates nearly 400 Boeing 737 aircraft to 59 U.S. cities. LUV is Southwest’s NYSE symbol, selected to represent the company’s home at Dallas Love Field, as well as the theme of Southwest’s employee and customer relationships. Southwest principally provides point-to-point, rather than hub-and-spoke, service. And AirTran principally provides hub-and-spoke, rather than point-to-point, service. Southwest’s point-to-point service has enabled it to provide its markets with frequent flights. In 2012, approximately 72% of Southwest’s customers flew non-stop, and Southwest’s average aircraft trip stage length was 678 miles with an average duration of approximately 1.9 hours. Southwest Airlines succeeded in defining a very simple and clear key business purpose, which is “the only short haul, low fare, high frequency, point-to-point carrier in America” that leaves very little room for interpretation. The most powerful strategy that Southwest Airlines adopted to be successful is not just the very clear definition but certainly also what the company and its leaders do with it. Their simple but effective key business purpose is the main guiding principle for Southwest Airlines’ strategic goals, business strategy, organizational infrastructure, and their company culture.
The mission of Southwest Airlines
The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit.
Figure: Southwest Airlines top-line revenue