organization. Southwest Airlines expends a lot of energy in maintaining its workplace culture. Southwest is the only major airline in the U.S. that has been profitable in each of the last five years. It also has a good reputation as an employer. Herb Kelleher‚ Southwest’s CEO‚ indicated how Southwest maintained its culture: "Well‚ first of all‚ it starts with hiring. We are zealous about hiring. We are looking for a particular type of person‚ regardless of which job category it is. We are looking for
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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.” Southwest Airlines was born in 1971‚ to Herb Kelleher and Rollin King. And this baby has yet to stop growing. Kelleher and King wanted to provide low cost‚ safe‚ and frequent airline service to the Dallas‚ Houston‚ and San Antonio area. Now they provide these same services to more than 100 destinations worldwide. Its success is
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Southwest reported record quarterly revenues‚ its 69th consecutive quarter of profitability‚ rising passenger traffic on its flights‚ and a record load factor.”5 With a brilliant strategy of ‘low cost/low fare/no frills’ Rollin King‚ along with Herb Kelleher‚ launched the most surprising success story in airline history. In 1966‚ King had an idea. “His business concept for the airline was simple: attract passengers by flying convenient schedules‚ get passengers to their destination on time‚ make sure
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their prices to match those of Southwest in order to be competitive. This is something that has come to be known as the “Southwest Effect.” The easy answer to why it worked is based on Southwest’s cost structure. The business plan developed by Herb Kelleher seemed to fly in the face of every aspect of airline convention. No meals‚ no assigned seats‚ no amenities‚ no retirement plan‚ one kind of plane‚ and flying point-to-point instead of hub-and-spoke. But every one of these things was cheaper for
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Ecole supérieure libre des sciences commerciales appliquées (ESLSCA) Strategic Management Paper Southwest Airline Strategic Audit Prepared By : Hesham Gamal El Din El Desouky Mohamed Dandash Wael Youssef Professor : Dr. Saneya El Galaly Group : 21-A Table Of Contents I. Executive Summary 5 II. SouthWest Airlines History 6 III. Current Situation 8 III.1. Current Performance 8 III.2. Strategic Posture 13 III.2.1. Mission & Vision 13 III.2.2. Objectives 14
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He started out as a controller in 1984 and then moving on to become Southwest’s CFO in 1989‚ but it wasn’t until 2004 that Gary Kelley was made the CEO. During his many years at with the company he has worked very close with the co-founder Herbert Kelleher‚ during that time you could say that Herbert was Gary’s mentor‚ and as it turns out both of them have a few things in common. Both of these men were born on May 12th‚ both came from middle class families‚ and both were pretty good athletes when they
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or team efforts. Recognition can be tangible or intangible‚ and range from a thank-you card to travel. The rewards‚ and recognition goals or to attract‚ retain‚ and to motivate employees. “More than thirty eight years ago‚ Rollin King and Herb Kelleher got together and decided to start a different kind of airline. They began with one simple notion: If you get your passengers to their destinations when they want to get there‚ on time‚ at the lowest possible fares‚ and make darn sure they have
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cost. As fuel dropped in price‚ Southwest was stuck with its contracts at higher prices. Southwest airlines began flying in 1971 after having to have to fight in court over restraining orders not allowing the new carrier to fly. Both times‚ Herb Kelleher pleaded his case before the Texas State Supreme Court and won. The very next day Southwest Airlines had its inaugural flight on June 18‚ 1971. Southwest is a short hop no frills or seating flight. Its hops are less than 500 miles and its employees
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Southwest Airlines became one of the most admired airlines in the world based on their dedication to their customers and the corporate strategies their leadership instituted. Their leadership created a different corporate culture that CEO Herb Kelleher and his company are devoted to the philosophy of putting employees first (Govindarajan‚ pg. 115). In doing so‚ Southwest was able to instill a management control system that relied on their employees and empowered them to achieve the overarching
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In 1992 Southwest Airlines was the only major airline in the US to post a profit. In 1993 the same airline outperformed its competitors. The CEO‚ Herb Kelleher stated the primary and most challenging SWA goal is to offer great service at low cost. SWA was able to meet and exceed this goal by competing using a new-game strategy. They sought to restructure the airline’s business to match company strengths. Instead of adapting to the way that other airlines operated‚ they created their own set
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