Background: Southwest Airlines is the largest airline measured by number of passengers carried each year within the United States. It is also known as a ‘discount airline’ compared with its large rivals in the industry. Rollin King and Herb Kelleher founded Southwest Airlines on June 18‚ 1971. Its first flights were from Love Field in Dallas to Houston and San Antonio‚ short hops with no-frills service and a simple fare structure. The airline began with one simple strategy: “If you get your passengers
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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
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Executive Summary The strategy of Southwest Airlines (SWA) has remained the same‚ which is to give customers low-cost‚ point-to-point airfare‚ with excellent customer service. This simple strategy has resulted in SWA posting profits for 30 consecutive years. While other airlines are downsizing‚ SWA is showing slow steady growth. This performance is evident throughout their SEC Filings. First we will look at SWA’s ROI and ROE compared to the rest of the industry. Two thousand and one and 2002 were
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4013 – SUMMER 1999 Case Study Southwest Airlines I. Strategic Profile and Case Analysis Purpose 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. Twenty-seven years ago‚ Rolling King‚ owner of floundering commuter airline‚ and Herb Kelleher‚ King’s lawyer‚ got together and decided to start a different kind of airline that would provide a short-haul‚ low-fair‚ high-frequency
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Southwest Airlines Motivational Profile A motivational profile can provide insights into whether a company is doing the right thing or requires improvements. Although nearly every company proclaims its goal is to deliver exceptional service‚ research confirms that the service quality of many corporations is below consumer expectations. Southwest Airlines has created a competitive advantage through valuing employees’ needs as a strategy that motivates them to provide better customer service (Hallowell
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Southwest Airlines Business Operations Southwest Airlines continues growth during challenging times with no its low price‚ no frills and good customer satisfaction‚ setting themselves apart from the competition. Organizational change is part of the culture that successfully allows Southwest Airlines to set itself apart. The airline industry is subject to external forces such as fuel prices‚ labor costs‚ passenger economic status‚ and public perception. Southwest Airlines has developed a successful
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and Hobby‚ which is Southwest Airlines’ only profitable route. Southwest needs to determine how to respond to this threatening strategic pricing move by Braniff in order to continuously stay ahead of their losses‚ and possibly reduce or eliminate it further for that operating year. Situational Analysis 3Cs: Competition Before Southwest was established‚ two airlines were servicing the geographic market - Braniff International Airways and Texas International (TI) Airlines. Though both provide
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success of Southwest Airlines? 2. How significant is the 10 to 15 minutes turnaround time of Southwest’s aircraft in terms of savings in investment and utilization of its aircraft compared to competitors? 3. What challenges is Southwest facing in the future and how should they meet those challenges? 4. What should their business and operations strategy be for the future? 5. Has Gary Kelly‚ the new Southwest CEO since 2004‚ been able to maintain the profitability of Southwest Airlines while insuring
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Southwest Airlines Case Summary Southwest Airlines was originally named Air Southwest. It was started on March 15‚ 1967‚ by Rollin King and Herb Kelleher. Southwest Airlines is an American low fare airline based in Dallas‚ Texas. It is also the largest airline in the United States by number of passengers carried domestically in a year and the third largest airline in the world by number of passengers carried. Southwest is also one the most profitable airlines in the world posting a profit
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Summary of Southwest Airlines: Does “LUV” Last?* First time in history‚ Southwest Airlines had its “LUV” for customers questioned. The Federal Aviation Administration (FAA) levied a record $10.2 million fine on Southwest Airlines. They accuse them after missing mandatory safety checks of flying 117 planes on nearly 60‚000 flights between June 18‚ 2006‚ and March 14‚ 2007. Both the FAA and Southwest testified. FAA officials were blamed for being “too close” to the airline and being
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