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Southwest Airlines

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Southwest Airlines
Introduction

Case studies
Learning excellence:
Southwest Airlines’ approach Ulla K. Bunz and
Jeanne D. Maes

The authors
Ulla K. Bunz and Jeanne D. Maes are based at the
University of South Alabama, Mobile, AL, USA.
Abstract
In an era in which adapting to change means survival, it is important to study what successful organizations have done. While the airline industry in the USA has not made thriving financial headlines, one small company has been able to satisfy its customers completely and achieve a place among the Fortune 500 in a relatively short period of time. In three steps, this article examines what Southwest
Airlines has done to reach this level of achievement and maintain its excellent employee and customer relations.
First, the company is defined as “excellent” according to the criteria established by Peters and Waterman. Second, management-employee relations, organizational training and strong leadership are identified as the sources of employee motivation. Third, loss of strong leadership and organizational structure are discussed as possible future problems influencing motivation and service. The article closes by pointing to Southwest Airline’s concept of service as the true source of motivation and excellence.

Managing Service Quality
Volume 8 · Number 3 · 1998 · pp. 163-169
© MCB University Press · ISSN 0960-4529

With the airline industry in the USA hardly making financial records, how has it been possible for a small company such as Southwest Airlines to completely satisfy their customers since 1971? (Bovier, 1993). What lessons has the management of Southwest
Airlines learned in such a relatively short time period? How have these lessons enabled the company to capture such a portion of the market? (Bovier, 1993; George and Jones,
1996)
Southwest Airlines began its service in
1971. Since then the killer-whale painted planes have become familiar to their customers and to corporate America. Besides



References: Bovier, C. (1993), “Teamwork, the heart of an airline”, Training, June, pp Bruce, A. (1997), “Southwest: back to the FUNdamentals”, HR Focus, March, Vol. 74 No. 3, p. 11. Chakravarty, S.N. (1991), “Hit ‘em hardest with the mostest”, Forbes, September 16, Vol George, J.M. and Jones, G.R. (1996), Understanding and Managing Organizational Behavior, Addison-Wesley Graham, D. (1996), “From space shots to milk runs”, Business Week, December 30, No Herzberg, F. (1968), “One more time: how do you motivate employees?”, Harvard Business Review, Vol Jaffe, C.A. (1991), “Moving fast by standing still”, Nation’s Business, October, Vol Beddingfield, K.T. and Loftus, M. (1997), “Europe unbound Bryant, A. (1994), “Kiwi seeks new labor ethic, end to Us vs Bryant, A. (1995), “One big happy family no more”, The New York Times, March 22, Vol Handy, C. (1978), The Gods of Management, Souvenir Press, Pan Books. McKenna, J.T. (1994), “Southwest, pilots trade stock for salary cap”,Aviation Week and Space Technology, N.N. (1991), “`The best (and worst) airlines”, Consumer Reports, July, Vol N.N. (1994), “Lighten up and treat passengers to some fun”, Aviation Week and Space Technology, March N.N. (1997), “Freedom in the air”, The Economist, April 5, Vol Rothman, A., DeGeorge, G. and Schine, E. (1992), “The season of upstart start-ups”, Business Week, August 31, No. 3281, pp. 68-9. Taylor, J.H. (1988), “Risk taker”, Forbes, November 14, Vol. Zellner, W., Baker, S., Hof, R.D. and Greising, D. (1995), “Go-go goliaths”, Business Week, February 13, No.

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