To: MBA731‚ Prof. Carlstrom Franklin University From: Kristie Bowman Subject: Gate Turnaround at Southwest Airlines Date: February 27‚ 2013 Business Brief Capacity planning is a necessary function of an organization to ensure that the highest rate of output is reached through the current processes taking place within an organization. These strategically defined processes must have the ability to provide flexibility to meet future capacity demand‚ whether due to opportunity growth
Premium Management
Southwest Airlines was started over 38 years ago as a small Texas airline and has grown to become one of the largest airlines in the United States because it differentiates itself as the most successful low-fare‚ high frequency‚ point-to-point carrier. Since 1987 Southwest has consistently led the entire airline industry with the lowest ratio of complaints per passenger boarded. What does Southwest do differently that no one else in airlines does? It keeps things simple and consistent‚ which drives
Premium Southwest Airlines Low-cost carrier Airline
Abstract Airline companies are facing many challenges keeping their cost down and profits up. Some of the main issues are gas prices and pilots pay. CEO of Southwest Airlines‚ Gary Kelly‚ has been able to work with fuel companies to provide one of the lowest costs for gas than any other company. With his great knowledge and social personality‚ he has been a very effective leader for Southwest. The company’s core competencies is treating their customers with respect and showing them that they are
Premium Southwest Airlines Airline ATA Airlines
the Pack: A Review of Southwest Airlines Innovative Fuel Strategy While many airlines suffer from rising fuel costs‚ Southwest Airlines continues to emerge victorious in the aeronautical landscape. Other carriers now forced to increase prices to compensate for fuel costs‚ are now subject to the new mindsets of consumers who are opting for longer bus and car rides‚ or simply not traveling at all. The woes of the airlines industry have many posing the question if airline travel is fast becoming
Premium Southwest Airlines Airline Low-cost carrier
Corporate Strategy Southwest Airlines faced many barriers to entry from the fierce competition of other airlines in the industry. Though competition was fierce‚ Southwest Airlines managed to succeed by doing things differently. Their mission was to provide affordable air travel to those who would not normally fly. Contradictory to the rest of the airline industry‚ Southwest maintained a profit while keeping its fares low. Southwest was unique to the industry in two ways. They focused on the short
Premium Southwest Airlines Airline Low-cost carrier
Constraint Management at Southwest Airlines Introduction I think everyone here may has the experience that the plane can not take off on time. The long waiting time make everyone feel anxious. And at this time‚ this airline company’s customer satisfaction will become lower. Therefore‚ There are a lot of constraints in the process of operating the airline. How to manage these constraints and generate positive customer experiences are vitally important to the airline company. Southwest is a company that
Premium Airline Southwest Airlines ATA Airlines
The airlines industry has historically been one of the most unprofitable industries. The reason can be explained when incorporating Michael Porter’s famous Five Forces Model. The threat of competition is Southwest Airlines Co. (NYSE: LUV) is an American low-cost airline based in Dallas‚ Texas‚ with its largest focus city at Las Vegas ’ McCarran International Airport. It is the largest airline in the United States by number of passengers carried domestically per year and (as of December 31‚ 2007)
Premium Southwest Airlines Airline
way to understand the external factors which Southwest Airlines is dealing with. Firstly the demographical factor that influence strategies of Southwest Airlines. The aging population in the United States is a big issue. It is known that older people‚ does not prefer to travel by plane‚ not for the short or long-haul. They are still too conservative and rather take a bus‚ train or drive themselves to the places they want to be. Because Southwest Airlines is very customer orientated they are providing
Premium Low-cost carrier Southwest Airlines Airline
Southwest Airlines is the industry leader in low cost airfare. They began its operation in 1971 with three Texas based routes and began interstate routes in 1978. When Southwest entered the market in 1971 they employed a market penetration pricing approach. They wanted to provide the best service for the lowest possible price. They saw that if they cut out certain unnecessary benefits they could lower their ticket price to a level far below that of the competition. They do not have in flight
Premium Southwest Airlines Airline Low-cost carrier
What are the sources of Southwest Airlines’ competitive advantages? There were three keystones to Southwest Airlines’ competitive advantage. The first lied in its employees and how they were managed. Secondly‚ the firm sought to identify major threats and opportunities in their competitors‚ and assess how Southwest could improve and capitalize on markets where their competition failed. And the final significant success factor was the company’s cost structure. Former CEO‚ Herb Kelleher‚ was
Premium Southwest Airlines Airline