Southwest Airlines
Southwest Airlines in 2010:
Culture, Values, and Operating Practices
Summary
Southwest Airlines was founded by Herb Kelleher in 1967 to provide low-cost service between Dallas, Houston, and San Antonio. Although the U.S. airline industry had lost money in 15 of the 30 years between 1980 and 2009, Southwest has reported profit every year since 1973. Southwest Airlines is considered to be the most successful budget airline in the U.S. Since 2000, the number of passengers flying Southwest has increased more by more than 28 million annually, whereas passenger traffic on domestic routes for other carriers declined. The airline is dedicated to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and company spirit.
Southwest has weathered numerous challenges since its beginning but has found a way to maintain profitability during economic downturns even as other airlines were flailing. They succeeded by relentlessly pursing operating efficiencies ranging from small details like serving peanuts and not full meals to operating the same airplane model across the entire company. Southwest’s relentless quest to have the lowest fares combined with their organizational culture has made them the largest domestic carrier in the United States by passenger volume and has made Southwest profitable in the face of rising oil prices, increased regulation and a downturn in the demand of their services due to the terrorist attacks of September 11th, 2001.
Analysis
Southwest relies on a low-cost strategy. They experimented with several successful gimmicks to gain a foothold in the industry. The best concept and the one that remains with them today is their “LUV Campaign.” When they entered Dallas' Love Field market, their slogan was, “Now there's somebody else up there who loves you.” They instilled the Golden Rule philosophy in their employees who passed the “LUV” to their customers creating a flying experience unlike
Culture, Values, and Operating Practices
Summary
Southwest Airlines was founded by Herb Kelleher in 1967 to provide low-cost service between Dallas, Houston, and San Antonio. Although the U.S. airline industry had lost money in 15 of the 30 years between 1980 and 2009, Southwest has reported profit every year since 1973. Southwest Airlines is considered to be the most successful budget airline in the U.S. Since 2000, the number of passengers flying Southwest has increased more by more than 28 million annually, whereas passenger traffic on domestic routes for other carriers declined. The airline is dedicated to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and company spirit.
Southwest has weathered numerous challenges since its beginning but has found a way to maintain profitability during economic downturns even as other airlines were flailing. They succeeded by relentlessly pursing operating efficiencies ranging from small details like serving peanuts and not full meals to operating the same airplane model across the entire company. Southwest’s relentless quest to have the lowest fares combined with their organizational culture has made them the largest domestic carrier in the United States by passenger volume and has made Southwest profitable in the face of rising oil prices, increased regulation and a downturn in the demand of their services due to the terrorist attacks of September 11th, 2001.
Analysis
Southwest relies on a low-cost strategy. They experimented with several successful gimmicks to gain a foothold in the industry. The best concept and the one that remains with them today is their “LUV Campaign.” When they entered Dallas' Love Field market, their slogan was, “Now there's somebody else up there who loves you.” They instilled the Golden Rule philosophy in their employees who passed the “LUV” to their customers creating a flying experience unlike