The Strategy Story

A unique take on Southwest Airlines Strategy

Anyone who has studied business management either as a degree or as an elective would have definitely studied Michael Porter’s 5 Forces framework. This framework was first published in  Harvard Business Review  in 1979. The model is very much relevant in 21st-century business as well due to its deep 360-degree view of a business.

One of the 5 forces is called “Barriers to Entry” and more often than not either Oil & Gas or Airline industry would serve as an apt example of an industry with very high barriers to entry due to its high Capex and Opex requirements.

But wait, then with so many barriers to entry, why do airlines still bleed red? There are many reasons for this, but one of them is stiff competition with low-cost carriers, the 5th, and the framework’s central force (competition among the players).

Before we move on, the below is an interesting tweet response from Anand Mahindra, on being asked to buy the ailing “ Jet Airways ”.

Remember the quote: “If you want to be a millionaire, start with a Billion dollars and then start (buy) an airline!” https://t.co/dYRdwup3kK — anand mahindra (@anandmahindra) June 29, 2019

The US Airline Industry

Following the 9/11 attacks, the US airline industry has been through rough weather. 20+ airlines have filed for bankruptcy protection under Chapter 7. 60+ airlines have filed for bankruptcy protection under Chapter 11.  This list also includes the top 3 out of 4 airlines namely, American Airlines, United & Delta Air Lines, however they were able to exit the bankruptcy within a few years.

The landscape has been constantly changing with a high volume of mergers and acquisitions, resulting in changing market share statistics.

case study southwest airlines

The graph above covering the period January to December 2020 showcases that the top 4 airlines constitute approx. 65% of the market share.

In this story, we are focusing on Southwest Airlines that was founded on the notions of the low-cost carrier but with its unique strategy has been profitable for the last 45 years in a row. 

The takeoff strategy of Southwest Airlines

Southwest Airlines Co. , typically referred to as Southwest, is one of the United States’ major airlines and the world’s largest low-cost carrier airline. The airline was established on March 15, 1967, by  Herb Kelleher  as Air Southwest Co. and adopted its current name, Southwest Airlines Co., in 1971, when it began operating as an intrastate airline wholly within the state of Texas first flying between Dallas, Houston and San Antonio. 

Most airlines back in the 1960s followed the most popular “Hub and Spoke” model for their operations.

Hub and Spoke model – As the name suggests, there is a defined hub from where the flights originate, and the destinations are the spokes.

The benefit of a hub and spoke model is that it has fewer routes, but the major drawback of this model is its rigidity, and if there is a slight change in the airline routing due to weather, etc., it can have cascading consequences to the other planned flights.

case study southwest airlines

Point to Point model – Southwest, being a low-cost carrier, focused more on the point to point model and bought significant process improvements, in a way mastered it to achieve very high operational efficiency.

In the point-to-point model, each flight is a single journey. The origin and destination are connected via a single non-stop flight. The point-to-point model offers more travel options and flexibility as compared to the hub and spoke model.

For passengers undertaking further journeys, they will have to collect the baggage and recheck them for leg 2 of their journey. This model has considerably led to saved travel hours and done away with the necessity for connecting flights.

case study southwest airlines

Key Differentiating Factors in Southwest Airlines Strategy

Southwest airlines is the third largest airline in the United States of America and arguably the biggest in the low-cost carrier segment across the globe.

So, was the operational efficiency gained due to the change in the flight operations model the only reason why Southwest airlines is the #1 low-cost carrier in the world?

NO, let’s understand what differentiated Southwest airlines strategy from its counterparts.

Customer Eccentricity

For Southwest, they keep the customers at the center of their business operations. They offer certain benefits to flyers which are not offered by other airlines, like

  • Southwest allows two checked-in bags, free of cost, unlike many of its competitors.
  • Flight change thirty minutes prior to the departure is allowed by Southwest.
  • Southwest offers free in-flight entertainment like Live TV, Movies, use of whatsapp and imessage. It offers Wi-Fi services at very nominal rates.

All these have resulted in Southwest being the airline with the least number of complaints, according to the Department of Transportation of the United States of America.

Only one type of aircraft

Many airlines have different types of aircraft in their fleet, but not Southwest. Southwest operates by using only Boeing 737 aircraft. It saves a lot of money by:

  • Training cabin crews and support staff on only one type of aircraft.
  • Maintenance of inventory of spare parts for one aircraft type.
  • In case of breakdown, alternate aircraft can be arranged immediately.
  • Its policy of not assigning seats helps tremendously as customers can take any available seat when boarding the aircraft, thereby reducing the boarding time. In the case of alternate aircraft also, this policy hugely benefits the airline reducing the turnaround time.

Right recruitment policies

Southwest stresses a lot on the customer experience and hence it is very imperative for the airline to hire the right kind of people. Southwest focusses on hiring people who have an attitude for serving customers.

Employees undergo various pieces of training which also includes cross-training. Training is heavily centered around team building and collaboration.

The Southwest Airlines case study is a lesson in cultural strategy. An organization built on the fundamentals of customer eccentricity, effective processes, and a dedicated team is meant to achieve success and overcome challenges. This model of exceptional customer service can help a business earn an impeccable reputation in the industry. That’s what makes the Southwest model uniquely priced, yet one profitable in this cruel airline industry.

Southwest’s ability to be different and not follow the herd—not to mention becoming America’s largest airline—can be traced in large part to the Airline Deregulation Act. Thanks to this act, Herb and Rollin realized their Vision and the traveling public benefits on every flight, every day. Gary Kelly, Chairman & CEO, Southwest Airlines

-AMAZONPOLLY-ONLYWORDS-START-

Also, check out our most loved stories below

case study southwest airlines

Johnnie Walker – The legend that keeps walking!

Johnnie Walker is a 200 years old brand but it is still going strong with its marketing strategies and bold attitude to challenge the conventional norms.

case study southwest airlines

Starbucks prices products on value not cost. Why?

In value-based pricing, products are price based on the perceived value instead of cost. Starbucks has mastered the art of value-based pricing. How?

Illuminated Nike shoes doing brand marketing

Nike doesn’t sell shoes. It sells an idea!!

Nike has built one of the most powerful brands in the world through its benefit based marketing strategy. What is this strategy and how Nike has used it?

Domino's pizza slice separated from pizza

Domino’s is not a pizza delivery company. What is it then?

How one step towards digital transformation completely changed the brand perception of Domino’s from a pizza delivery company to a technology company?

case study southwest airlines

BlackRock, the story of the world’s largest shadow bank

BlackRock has $7.9 trillion worth of Asset Under Management which is equal to 91 sovereign wealth funds managed. What made it unknown but a massive banker?

case study southwest airlines

Why does Tesla’s Zero Dollar Budget Marketing Strategy work?

Touted as the most valuable car company in the world, Tesla firmly sticks to its zero dollar marketing. Then what is Tesla’s marketing strategy?

case study southwest airlines

The Nokia Saga – Rise, Fall and Return

Nokia is a perfect case study of a business that once invincible but failed to maintain leadership as it did not innovate as fast as its competitors did!

case study southwest airlines

Yahoo! The story of strategic mistakes

Yahoo’s story or case study is full of strategic mistakes. From wrong to missed acquisitions, wrong CEOs, the list is endless. No matter how great the product was!!

case study southwest airlines

Apple – A Unique Take on Social Media Strategy

Apple’s social media strategy is extremely unusual. In this piece, we connect Apple’s unique and successful take on social media to its core values.

-AMAZONPOLLY-ONLYWORDS-END-

case study southwest airlines

Vinit Joshi is Corporate Planning & Strategy professional with 15+ years of experience across renowned & diversified business groups. When not working or spending time with family, Vinit loves listening to a variety of music

Related Posts

case study southwest airlines

Revolutionizing Supply Chain Planning with AI: The Future Unleashed

case study southwest airlines

Is AI the death knell for traditional supply chain management?

case study southwest airlines

Merchant-focused Business & Growth Strategy of Shopify

case study southwest airlines

Business, Growth & Acquisition Strategy of Salesforce

case study southwest airlines

Hybrid Business Strategy of IBM

case study southwest airlines

Strategy Ingredients that make Natural Ice Cream a King

case study southwest airlines

Investing in Consumer Staples: Profiting from Caution

case study southwest airlines

Storytelling: The best strategy for brands

new york times

How Acquisitions Drive the Business Strategy of New York Times

case study southwest airlines

Rely on Annual Planning at Your Peril

case study southwest airlines

How does Vinted make money by selling Pre-Owned clothes?

n26 business model

N26 Business Model: Changing banking for the better

case study southwest airlines

Sprinklr Business Model: Managing Unified Customer Experience

case study southwest airlines

How does OpenTable make money | Business model

case study southwest airlines

How does Paytm make money | Business Model

case study southwest airlines

How does DoorDash make money | Business Model

Write a comment cancel reply.

Save my name, email, and website in this browser for the next time I comment.

  • Advanced Strategies
  • Brand Marketing
  • Digital Marketing
  • Luxury Business
  • Startup Strategies
  • 1 Minute Strategy Stories
  • Business Or Revenue Model
  • Forward Thinking Strategies
  • Infographics
  • Publish & Promote Your Article
  • Write Article
  • Testimonials
  • TSS Programs
  • Fight Against Covid
  • Privacy Policy
  • Terms and condition
  • Refund/Cancellation Policy
  • Master Sessions
  • Live Courses
  • Playbook & Guides

Type above and press Enter to search. Press Esc to cancel.

AviationSource News

  • North America
  • Middle East & Asia-Pacific
  • Newsletters

50 Years On: Southwest’s Low-Cost, High-Value Success Story

case study southwest airlines

LONDON – March 2021 marked fifty years of the Southwest Airlines name being in existence, marking a milestone in what has been seen as a low-cost, high-value success story.

This article will look at the history of the carrier over the last fifty years, including how it remains to be the oldest and most popular low-cost carrier in the industry and whether any other airlines in the U.S and around the world could look to adopt such a model during the COVID-19 pandemic.

50 Years of Significant History – A Brief Look

To understand why Southwest has had the success it has, we must briefly look at the history of the carrier and where it started.

Whilst it is the 50th anniversary of the Southwest name, it is actually the 54th birthday of the carrier following the forming of Air Southwest Co being incorporated on March 15, 1967 (SWAMedia, 2021).

For three years, the airline had to fight with the likes of Braniff, Trans-Texas, and Continental Airlines over restraining orders which prevented the carrier from operating (ibid).

case study southwest airlines

Once the courts denied the appeals from Braniff and Texas International, the airline name was changed to Southwest Airlines on March 29, 1971, with Boeing selling three 737-200s to the airline, with the manufacturer carrying “90% of the financing” (ibid).

In that same year, more appeals were filed from competitors but were thrown out once again, enabling the airline to begin services to Dallas (DAL), San Antonio (SAT) and Houston (IAH) (ibid).

By the end of 1971, the airline had carried over 108,000 passengers from 6,051 different trips across just four aircraft, showing what would be the true potential of the business’ success going forward (ibid).

Even with the airline selling its fourth aircraft to Frontier Airlines in May 1972 for a “$500,000 net profit”, the airline was able to carry over triple what it carried passengers-wise within a year, handling 308,999 customers in a 12-month period (SWAMedia, 2021a).

1973 was the year that things began to heat up for the airline, offering a “half-fare sale to SAT on all flights, $13 one way, $25 round-trip” (ibid). This encouraged a price war with Braniff, but Southwest came out on top after throwing in a “free bottle of premium liquor with every full fare ticket” (ibid).

Such a battle was one of the “most widely reported and publicly watched conflicts of aviation history”, giving Southwest all of the exposure it needed to make the airline end with its first yearly profit having carried over 500,000 passengers at that point.

case study southwest airlines

By 1974, it had handled its one millionth passenger and was surpassing the three quarters of a million passengers carried on average every year (ibid).

From 1975 to 1983, the numbers increase from one million per year to 9.5 million passengers per year through the introduction of more aircraft into the fleet, including Boeing 727s, and adding more destinations. This was where momentum was beginning to speed up (SWAMedia, 2021b).

1984 to 1989 was a significant five years for the airline, having reached “major carrier status in 1989” due to the airline receiving revenues of over $1 billion every year and handling nearly 18 million passengers a year (SWAMedia, 2021c).

Airline load factors were remaining strong, and the airline was ordering more Boeing aircraft as well as expanding into more destinations such as Phoenix, Los Angeles and Ontario.

Southwest entered the 90’s handling over 20 million passengers per year, operating 124 aircraft in the fleet and expanding further into the West Coast of the U.S with the introduction of “Most to the Coast” flights between Los Angeles and Las Vegas (SWAMedia, 2021d).

And by decade-end, the airline entered 2000 having handled 57.5 million passengers, highlighting such a meteoric rise in that ten year period and entered the new decade opening up operations in Orlando, employing at the time 750 pilots and 900 flight attendants when fully staffed (SWAMedia, 2021e).

Even in the wake of the financial crash in 2008, the airline was still able to produce its “68th straight profitable quarter” and continued rapid growth in the likes of Denver with flights to Las Vegas and San Antonio (SWAMedia, 2021f).

case study southwest airlines

With the uncertainty that lingered years after, Southwest was still able to save money and remain financially competitive and viable, especially with a fuel reduction of 54 million gallons of fuel each year due to the use of the winglets on the Boeing 737s (ibid). It is elements like that which made Southwest stand out from the rest.

As the airline entered the last decade, its main efforts were seen in 2014 when it acquired 54 slots for 27 daily flights out of Washington’s Reagan National Airport in an aim to acquire significant business out of the D.C area (SWAMedia, 2021g).

Such patterns of slot acquisition and route portfolio boosting continued until the COVID-19 pandemic. 2019 numbers see Southwest carry around 134.1 million passengers per year, making it the largest low-cost carrier in the United States (SWAMedia, 2020).

That brings us to today. Even in the wake of the COVID-19 pandemic, its successes of the last 50 years have prepared the airline in terms of financial efficiency, strength and muster. Which brings us into why this airline has been successful over the last five decades.

Why is the airline successful?

As noted by scholars over the last few years, it has been noticed that even “in a highly volatile industry, Southwest has been profitable every year except for the year in which it was established. That means [that] by 2003 [for example], Southwest [had] been profitable for 31 years”, which even in the wake of financial depression after 2003 and beyond, the airline has still performed significantly well (Gittell 2004, p. 1). It highlighted that the airline’s low-cost model has worked through the different generations it experienced. Because a lot has changed since 1971.

Another aspect of the airline’s success is the people in the business. “Southwest’s success may be due largely to its unusual focus on creating value for employees. “LUV” and “FUN”, the cornerstones of Southwest’s employee-relations approach, represent concern and respect for the individual” (Hallowell 1996, p. 513).

case study southwest airlines

Happier staff means tat they will be better motivated, which mean the job will be performed at a much better rate. In the context of COVID, the motivation is especially much higher, especially with CEO Gary Kelly being committed to furloughing people as a last resort (Hoopfer, 2020).

Perfect product placement was also at the forefront of the Southwest model. The airline underwent a “successful differentiation strategy orientation from the venture… Southwest Airlines to position itself as the lowest fares airlines, its strategy in any market environment, to maintain the lowest fares” due to the base including “business passengers, low-income families and students” (Dan & Xinde 2014, p. 235).

Finally, Herb Kelleher, an important figure of the Southwest family, enabled an attitude of community-based business rather than focusing on the sole financial aspect of the airline.

As he says, “just by the way you do business, you can make a successful contribution to the good of the American people, and that’s what I think Southwest has done” (Guinto 2006, p. 110). Because the airline cares, the respect will therefore be returned via successful business metrics.

Can other airlines adopt this model to ensure longevity post-pandemic?

Such a success story on the Southwest can easily be replicated onto other airlines across Europe, both low-cost (LCC) and also full-service (FSC).

For example, “to combat customer perception, Ryanair launched an “Always Getting Better” program that focuses on customer service improvements for the entire family”, meaning that the airline is finally beginning to take an approach towards people, being its customers (Tran et al 2015, p. 5).

case study southwest airlines

With such carriers catching on to that model, customer service is going to be more important than ever especially as the industry looks to turn away from the pandemic and ensure safety and confidence when they are flying with such airlines.

Whilst FSC’s take more of a customer-based focus compared to most LCCs, it could be debated that they need to change the way that they operate.

“For low cost subsidiaries to survive and prosper, ‘matching’ models of human resource management predict that they need to create a low-cost employment system, which will be very different from that of the parent company” (Harvey & Turnbull 2010, p. 230). This basically means that FSCs may need to follow in the footsteps of Ryanair, Southwest, easyJet and others as COVID has reduced people’s incomes, which may force a hand in choosing LCCs over FSCs.

If FSCs can achieve this, then “it may try to differentiate its product to gain a degree of monopoly power”, which is what such airlines would want in the midst of a global pandemic (Button 2012, p. 200).

A final perspective to look at is that airlines must go hard on airports, regardless of how brutal or harsh it may be.

case study southwest airlines

Whilst this is not an ideal scenario, it is typical of LCC’s to do this. As Humphreys et al (2006, p. 413) says, “the low-cost model has implications for the airline-airport relationship, forcing airports to negotiate contracts which significantly reduce aeronautical revenues”.

This is of course why we are seeing an increase in commercial revenue from airport parking, drop-off and other ancillary methods of financial acquisition.

Such a strategy appears to work as “evidence suggests that increasingly LCCs also establish themselves in what can be considered the major airports”, like with Ryanair in Dublin as an example (Dobruszkes 2017, p. 50).

This in turn also encourages a battle of the major airports versus the regional airports, which “suggests that the regional airports may have been more active in reducing their charges or keeping them competitive to stimulate growth”, offering the view that airports play off each other at the benefit of the airline (Dennis & Graham 2006, p. 6).

If FSCs could potentially adopt that same model, then it could prove to be a chaotic few years for airports.

Overall Thoughts

case study southwest airlines

Overall, the success of Southwest Airlines over the past 50 years should prove to be a case study for other LCCs and FSCs alike to adopt their model more. As income reduces because of the pandemic, the focus will now be on LCCs for affordable travel.

Airlines like Ryanair and others have been well-averse with placing airports against each other, but need to go that one step extra to include a more people-based approach to its customer care.

It is airlines such as Southwest that have been ahead of this trend for five decades, and even in the midst of a global pandemic, it will continue to do so for many years to come.

  • SWAMedia (2021), 1966 to 1971 , https://www.swamedia.com/pages/1966-to-1971 [Last Accessed 19th January 2021]
  • SWAMedia (2021a), 1972 to 1977, https://www.swamedia.com/pages/1972-to-1977 [Last Accessed 19th January 2021]
  • SWAMedia (2021b), 1978 to 1983, https://www.swamedia.com/pages/1978-to-1983 [Last Accessed 19th January 2021]
  • SWAMedia (2021c), 1984 to 1989, https://www.swamedia.com/pages/1984-to-1989 [Last Accessed 19th January 2021]
  • SWAMedia (2021d), 1990 to 1995, https://www.swamedia.com/pages/1990-to-1995 [Last Accessed 19th January 2021]
  • SWAMedia (2021e), 1996 to 2001, https://www.swamedia.com/pages/1996-to-2001 [Last Accessed 19th January 2021]
  • SWAMedia (2021f), 2008 to 2013 , https://www.swamedia.com/pages/2008-to-2013 [Last Accessed 19th January 2021]
  • SWAMedia (2021g), 2014 to Present , https://www.swamedia.com/pages/2014-to-present [Last Accessed 19th January 2021]
  • SWAMedia (2020), Corporate Fact Sheet , https://www.swamedia.com/pages/corporate-fact-sheet [Last Accessed 19th January 2021]
  • Gittell, JH. (2004), The Southwest Airlines Way, Summaries.com, https://d1wqtxts1xzle7.cloudfront.net/39799702/thesouthwestairlinesway.pdf?1446998784=&response-content-disposition=inline%3B+filename%3DThesouthwestairlinesway.pdf&Expires=1611095940&Signature=CkixwbsDhdDcDnIx6iiznxS4RqXd91dnweRn-4pDjoUx5J92DbmAUrpTi-48f-yt18Ka9cvsrQdJPZ9ojcG4KkIYpGztnRWPi99n2sM-Pxks2dRbRhSVuhyzo5ZewOiD5zRS8u5ENi93Eo7NxTHNSnNFf2w8ArvE~bg7npowPJ~3xNLf6je3PkCp45yQgcToSYiMQi3KIE3LdnoIvmu7VRedWXzGTpXo4bNc4QTwlc-EKVptna9UK1k5M0cSb7n0AO4wn9xofD~GsuP649OxPE-NzGDMh2ZWAw5GKuPLci-tcn6PhU0nEJ5yEHPCa9Ohxh2lKvp4bV-f9bVPL-DyMg__&Key-Pair-Id=APKAJLOHF5GGSLRBV4ZA [Last Accessed 19th January 2021]
  • Hallowell, R. (1996), Southwest Airlines: A Case Study Linking Employee Needs Satisfaction and Organizational Capabilities to Competitive Advantage , Human Resource Management, Vol 3, No. 4, pp. 513-534
  • Hoopfer, E. (2020), Southwest Airlines CEO Tells Employees His Plan to Prevent Furloughs, Layoffs Through 2021, Dallas Business Journal, https://www.bizjournals.com/dallas/news/2020/10/05/southwest-airlines-furloughs-layoffs-prevention.html [Last Accessed 19th January 2021]
  • Dan, Y. & Xinde, C. (2014), Innovation Research of Enterprise Human Resource Selection – The Selection of Southwest Airlines, International Journal of Business & Social Science, Vol 5, No. 7, pp. 234-241
  • Guinto, J. (2013), Wheels Up, Southwest Airlines Spirit, http://www.josephguinto.com/wp-content/uploads/2013/02/HerbSWA35.pdf [Last Accessed 19th January 2021]
  • Tran, N. et al (2015), Ryanair Holdings, Case Study, University of Richmond: Robins School of Business, https://scholarship.richmond.edu/cgi/viewcontent.cgi?referer=https://scholar.google.com/&httpsredir=1&article=1012&context=robins-case-network [Last Accessed 19th January 2021]
  • Harvey, G. & Turnbull, P. (2010), On the Go: Walking the High Road at a Low-Cost Airline, The International Journal of Human Resource Management, Vol 21, No. 2, pp. 230-241
  • Button, K. (2012), Low-Cost Airlines: A Failed Business Model?, Transportation Journal, Vol. 51, No. 2, pp. 197-219
  • Humphreys, I. et al (2006), A Review of the Airport-Low Cost Airline Relationship, Review of Network Economics, Vol. 5, No. 4, pp. 413-420
  • Dobruszkes, F. (2017), Hello major airports, goodbye regional airports? Recent changes in European and US low-cost airline airport choice, Journal of Air Transport Management, Vol 59, March 2017, pp. 50-62
  • Dennis, N. & Graham, A. (2006), Airport Traffic Growth and Airport Financial Performance: Has The Low-Cost Airline Boom Been Successful for Airport Operators?, University of Westminster, Association for European Transport and Contributors

Workers install solar panels at Singapore Changi Airport

Changi Airport: Singapore’s largest solar panel system in progress

Work has now commenced at Changi Airport on what will be the largest single-site rooftop solar panel system in Singapore.

Len Varley

Frankfurt Airport Handles 4.1m Passengers in January 2024

Fraport, the operator of Frankfurt Airport, has announced the handling of 4.1m passengers in January 2024. Such a figure represents …

James Field

Too Many Flights!: Mumbai Airport Asked To Reduce Congestion

The Indian Government has asked Mumbai Airport to reduce the amount of flights in order to reduce congestion. As per …

Canberra Airport Is Getting Direct Flights to Bali in June

Canberra Airport Is Getting Direct Flights to Bali in June

Canberra Airport has announced this month that they will be getting direct flights to Bali, thanks to Indonesian carrier Batik …

A Porter Airlines E195-E2 E-Jet on tarmac.

Porter Airlines expansion: 3 new crew bases

An Avelo Airlines aircraft passes overhead.

Avelo Airlines boosts flights from Manchester-Boston MHT

A Ryanair cabin crew member exits and aircraft.

Ryanair forges further OTA partnership with TUI

A flydubai Boeing 787 in flight

flydubai adds four routes to its European network

Blue Air Failure: European Commission to Recover €33.84m

Blue Air Failure: European Commission to Recover €33.84m

Hawaiian Stockholders Approve Alaska Airlines Merger

Hawaiian Stockholders Approve Alaska Airlines Merger

Porter Unveils Toronto-Saskatoon, Launches Ottawa-Calgary

Porter Unveils Toronto-Saskatoon, Launches Ottawa-Calgary

Ryanair aircraft parked at Palermo Airport, Sicily.

Ryanair set for record summer operation in Palermo

An IndiGo Airbus A320neo lands.

IndiGo signs leases for 4 CFM-powered A320neo aircraft

A United Airlines jet with Sustainable Flight logo

United onboards more partners in Sustainable Flight Fund

Delta Air Lines workers hold up protest signs.

Teamsters, lawmakers call for neutrality from Delta Air Lines CEO

The tailplane of a Ryanair Boeing 737

Milan court upholds Ryanair’s online distribution model

Sign in to your account

Username or Email Address

Remember Me

About Stanford GSB

  • The Leadership
  • Dean’s Updates
  • School News & History
  • Commencement
  • Business, Government & Society
  • Centers & Institutes
  • Center for Entrepreneurial Studies
  • Center for Social Innovation
  • Stanford Seed

About the Experience

  • Learning at Stanford GSB
  • Experiential Learning
  • Guest Speakers
  • Entrepreneurship
  • Social Innovation
  • Communication
  • Life at Stanford GSB
  • Collaborative Environment
  • Activities & Organizations
  • Student Services
  • Housing Options
  • International Students

Full-Time Degree Programs

  • Why Stanford MBA
  • Academic Experience
  • Financial Aid
  • Why Stanford MSx
  • Research Fellows Program
  • See All Programs

Non-Degree & Certificate Programs

  • Executive Education
  • Stanford Executive Program
  • Programs for Organizations
  • The Difference
  • Online Programs
  • Stanford LEAD
  • Stanford Innovation and Entrepreneurship Certificate
  • Seed Transformation Program
  • Seed Aspire Program
  • Seed Spark Program
  • Faculty Profiles
  • Academic Areas
  • Awards & Honors
  • Conferences

Faculty Research

  • Publications
  • Working Papers
  • Case Studies

Research Hub

  • Research Labs & Initiatives
  • Business Library
  • Data, Analytics & Research Computing
  • Behavioral Lab

Research Labs

  • Cities, Housing & Society Lab
  • Golub Capital Social Impact Lab

Research Initiatives

  • Corporate Governance Research Initiative
  • Corporations and Society Initiative
  • Policy and Innovation Initiative
  • Rapid Decarbonization Initiative
  • Stanford Latino Entrepreneurship Initiative
  • Value Chain Innovation Initiative
  • Venture Capital Initiative
  • Career & Success
  • Climate & Sustainability
  • Corporate Governance
  • Culture & Society
  • Finance & Investing
  • Government & Politics
  • Leadership & Management
  • Markets & Trade
  • Operations & Logistics
  • Opportunity & Access
  • Organizational Behavior
  • Political Economy
  • Social Impact
  • Technology & AI
  • Opinion & Analysis
  • Email Newsletter

Welcome, Alumni

  • Communities
  • Digital Communities & Tools
  • Regional Chapters
  • Women’s Programs
  • Identity Chapters
  • Find Your Reunion
  • Career Resources
  • Job Search Resources
  • Career & Life Transitions
  • Programs & Services
  • Career Video Library
  • Alumni Education
  • Research Resources
  • Volunteering
  • Alumni News
  • Class Notes
  • Alumni Voices
  • Contact Alumni Relations
  • Upcoming Events

Admission Events & Information Sessions

  • MBA Program
  • MSx Program
  • PhD Program
  • Alumni Events
  • All Other Events
  • Operations, Information & Technology
  • Classical Liberalism
  • The Eddie Lunch
  • Accounting Summer Camp
  • Videos, Code & Data
  • California Econometrics Conference
  • California Quantitative Marketing PhD Conference
  • California School Conference
  • China India Insights Conference
  • Homo economicus, Evolving
  • Political Economics (2023–24)
  • Scaling Geologic Storage of CO2 (2023–24)
  • A Resilient Pacific: Building Connections, Envisioning Solutions
  • Adaptation and Innovation
  • Changing Climate
  • Civil Society
  • Climate Impact Summit
  • Climate Science
  • Corporate Carbon Disclosures
  • Earth’s Seafloor
  • Environmental Justice
  • Operations and Information Technology
  • Organizations
  • Sustainability Reporting and Control
  • Taking the Pulse of the Planet
  • Urban Infrastructure
  • Watershed Restoration
  • Junior Faculty Workshop on Financial Regulation and Banking
  • Ken Singleton Celebration
  • Quantitative Marketing PhD Alumni Conference
  • Presentations
  • Theory and Inference in Accounting Research
  • Stanford Closer Look Series
  • Quick Guides
  • Core Concepts
  • Journal Articles
  • Glossary of Terms
  • Faculty & Staff
  • Researchers & Students
  • Research Approach
  • Charitable Giving
  • Financial Health
  • Government Services
  • Workers & Careers
  • Short Course
  • Adaptive & Iterative Experimentation
  • Incentive Design
  • Social Sciences & Behavioral Nudges
  • Bandit Experiment Application
  • Conferences & Events
  • Get Involved
  • Reading Materials
  • Teaching & Curriculum
  • Energy Entrepreneurship
  • Faculty & Affiliates
  • SOLE Report
  • Responsible Supply Chains
  • Current Study Usage
  • Pre-Registration Information
  • Participate in a Study

Southwest Airlines (A)

case study southwest airlines

  • See the Current DEI Report
  • Supporting Data
  • Research & Insights
  • Share Your Thoughts
  • Search Fund Primer
  • Affiliated Faculty
  • Faculty Advisors
  • Louis W. Foster Resource Center
  • Defining Social Innovation
  • Impact Compass
  • Global Health Innovation Insights
  • Faculty Affiliates
  • Student Awards & Certificates
  • Changemakers
  • Dean Garth Saloner
  • Dean Robert Joss
  • Dean Michael Spence
  • Dean Robert Jaedicke
  • Dean Rene McPherson
  • Dean Arjay Miller
  • Dean Ernest Arbuckle
  • Dean Jacob Hugh Jackson
  • Dean Willard Hotchkiss
  • Faculty in Memoriam
  • Stanford GSB Firsts
  • Certificate & Award Recipients
  • Dean’s Remarks
  • Keynote Address
  • Teaching Approach
  • Analysis and Measurement of Impact
  • The Corporate Entrepreneur: Startup in a Grown-Up Enterprise
  • Data-Driven Impact
  • Designing Experiments for Impact
  • Digital Business Transformation
  • The Founder’s Right Hand
  • Marketing for Measurable Change
  • Product Management
  • Public Policy Lab: Financial Challenges Facing US Cities
  • Public Policy Lab: Homelessness in California
  • Lab Features
  • Curricular Integration
  • View From The Top
  • Formation of New Ventures
  • Managing Growing Enterprises
  • Startup Garage
  • Explore Beyond the Classroom
  • Stanford Venture Studio
  • Summer Program
  • Workshops & Events
  • The Five Lenses of Entrepreneurship
  • Leadership Labs
  • Executive Challenge
  • Arbuckle Leadership Fellows Program
  • Selection Process
  • Training Schedule
  • Time Commitment
  • Learning Expectations
  • Post-Training Opportunities
  • Who Should Apply
  • Introductory T-Groups
  • Leadership for Society Program
  • Certificate
  • 2023 Awardees
  • 2022 Awardees
  • 2021 Awardees
  • 2020 Awardees
  • 2019 Awardees
  • 2018 Awardees
  • Social Management Immersion Fund
  • Stanford Impact Founder Fellowships and Prizes
  • Stanford Impact Leader Prizes
  • Social Entrepreneurship
  • Stanford GSB Impact Fund
  • Economic Development
  • Energy & Environment
  • Stanford GSB Residences
  • Environmental Leadership
  • Stanford GSB Artwork
  • A Closer Look
  • California & the Bay Area
  • Voices of Stanford GSB
  • Business & Beneficial Technology
  • Business & Sustainability
  • Business & Free Markets
  • News & Insights
  • Second Year
  • Global Experiences
  • JD/MBA Joint Degree
  • MA Education/MBA Joint Degree
  • MD/MBA Dual Degree
  • MPP/MBA Joint Degree
  • MS Computer Science/MBA Joint Degree
  • MS Electrical Engineering/MBA Joint Degree
  • MS Environment and Resources (E-IPER)/MBA Joint Degree
  • Academic Calendar
  • Clubs & Activities
  • LGBTQ+ Students
  • Military Veterans
  • Minorities & People of Color
  • Partners & Families
  • Students with Disabilities
  • Student Support
  • Residential Life
  • Student Voices
  • MBA Alumni Voices
  • A Week in the Life
  • Career Support
  • Employment Outcomes
  • Cost of Attendance
  • Knight-Hennessy Scholars Program
  • Yellow Ribbon Program
  • BOLD Fellows Fund
  • Application Process
  • Loan Forgiveness
  • Contact the Financial Aid Office
  • Evaluation Criteria
  • GMAT & GRE
  • English Language Proficiency
  • Personal Information, Activities & Awards
  • Professional Experience
  • Letters of Recommendation
  • Optional Short Answer Questions
  • Application Fee
  • Reapplication
  • Deferred Enrollment
  • Entering Class Profile
  • Event Schedule
  • Ambassadors
  • New & Noteworthy
  • Ask a Question
  • See Why Stanford MSx
  • Is MSx Right for You?
  • Leadership Development
  • Career Advancement
  • Career Change
  • How You Will Learn
  • Admission Events
  • Personal Information
  • Information for Recommenders
  • GMAT, GRE & EA
  • English Proficiency Tests
  • After You’re Admitted
  • Daycare, Schools & Camps
  • U.S. Citizens and Permanent Residents
  • Requirements
  • Requirements: Behavioral
  • Requirements: Quantitative
  • Requirements: Macro
  • Requirements: Micro
  • Annual Evaluations
  • Field Examination
  • Research Activities
  • Research Papers
  • Dissertation
  • Oral Examination
  • Current Students
  • Education & CV
  • International Applicants
  • Statement of Purpose
  • Reapplicants
  • Application Fee Waiver
  • Deadline & Decisions
  • Job Market Candidates
  • Academic Placements
  • Stay in Touch
  • Faculty Mentors
  • Current Fellows
  • Standard Track
  • Fellowship & Benefits
  • Group Enrollment
  • Program Formats
  • Developing a Program
  • Diversity & Inclusion
  • Strategic Transformation
  • Program Experience
  • Contact Client Services
  • Campus Experience
  • Live Online Experience
  • Silicon Valley & Bay Area
  • Digital Credentials
  • Faculty Spotlights
  • Participant Spotlights
  • Eligibility
  • International Participants
  • Stanford Ignite
  • Founding Donors
  • Location Information
  • Participant Profile
  • Network Membership
  • Program Impact
  • Collaborators
  • Entrepreneur Profiles
  • Company Spotlights
  • Seed Transformation Network
  • Responsibilities
  • Current Coaches
  • How to Apply
  • Meet the Consultants
  • Meet the Interns
  • Intern Profiles
  • Collaborate
  • Research Library
  • Program Contacts
  • Databases & Datasets
  • Research Guides
  • Consultations
  • Research Workshops
  • Career Research
  • Research Data Services
  • Course Reserves
  • Course Research Guides
  • Material Loan Periods
  • Fines & Other Charges
  • Document Delivery
  • Interlibrary Loan
  • Equipment Checkout
  • Print & Scan
  • MBA & MSx Students
  • PhD Students
  • Other Stanford Students
  • Faculty Assistants
  • Research Assistants
  • Stanford GSB Alumni
  • Telling Our Story
  • Staff Directory
  • Site Registration
  • Alumni Directory
  • Alumni Email
  • Privacy Settings & My Profile
  • Event Registration
  • Success Stories
  • The Story of Circles
  • Support Women’s Circles
  • Stanford Women on Boards Initiative
  • Alumnae Spotlights
  • Insights & Research
  • Industry & Professional
  • Entrepreneurial Commitment Group
  • Recent Alumni
  • Half-Century Club
  • Fall Reunions
  • Spring Reunions
  • MBA 25th Reunion
  • Half-Century Club Reunion
  • Faculty Lectures
  • Ernest C. Arbuckle Award
  • Alison Elliott Exceptional Achievement Award
  • ENCORE Award
  • Excellence in Leadership Award
  • John W. Gardner Volunteer Leadership Award
  • Robert K. Jaedicke Faculty Award
  • Jack McDonald Military Service Appreciation Award
  • Jerry I. Porras Latino Leadership Award
  • Tapestry Award
  • Student & Alumni Events
  • Executive Recruiters
  • Interviewing
  • Negotiating
  • Elevator Pitch
  • Email Best Practices
  • Resumes & Cover Letters
  • Self-Assessment
  • Whitney Birdwell Ball
  • Margaret Brooks
  • Bryn Panee Burkhart
  • Margaret Chan
  • Ricki Frankel
  • Peter Gandolfo
  • Cindy W. Greig
  • Natalie Guillen
  • Carly Janson
  • Sloan Klein
  • Sherri Appel Lassila
  • Stuart Meyer
  • Tanisha Parrish
  • Virginia Roberson
  • Philippe Taieb
  • Michael Takagawa
  • Terra Winston
  • Johanna Wise
  • Debbie Wolter
  • Rebecca Zucker
  • Complimentary Coaching
  • Changing Careers
  • Work-Life Integration
  • Career Breaks
  • Flexible Work
  • Encore Careers
  • D&B Hoovers
  • Data Axle (ReferenceUSA)
  • EBSCO Business Source
  • Global Newsstream
  • Market Share Reporter
  • ProQuest One Business
  • Student Clubs
  • Entrepreneurial Students
  • Stanford GSB Trust
  • Alumni Community
  • How to Volunteer
  • Springboard Sessions
  • Consulting Projects
  • 2020 – 2029
  • 2010 – 2019
  • 2000 – 2009
  • 1990 – 1999
  • 1980 – 1989
  • 1970 – 1979
  • 1960 – 1969
  • 1950 – 1959
  • 1940 – 1949
  • Service Areas
  • ACT History
  • ACT Awards Celebration
  • Contact ACT
  • Business & Nonprofit Communities
  • Reunion Volunteers
  • Ways to Give
  • Fiscal Year Report
  • Business School Fund Leadership Council
  • Planned Giving Options
  • Planned Giving Benefits
  • Planned Gifts and Reunions
  • Legacy Partners
  • Strategic Initiatives
  • Giving News & Stories
  • Giving Deadlines
  • Development Staff
  • Submit Class Notes
  • Class Secretaries
  • Board of Directors
  • Health Care
  • Sustainability
  • Class Takeaways
  • All Else Equal: Making Better Decisions
  • If/Then: Business, Leadership, Society
  • Grit & Growth
  • Leadership for Society
  • Think Fast, Talk Smart
  • Spring 2022
  • Spring 2021
  • Autumn 2020
  • Summer 2020
  • Winter 2020
  • In the Media
  • For Journalists
  • DCI Fellows
  • Other Auditors
  • Academic Calendar & Deadlines
  • Course Materials
  • Frequently Asked Questions
  • Entrepreneurial Resources
  • Campus Drive Grove
  • Campus Drive Lawn
  • CEMEX Auditorium
  • King Community Court
  • Seawell Family Boardroom
  • Stanford GSB Bowl
  • Stanford Investors Common
  • Town Square
  • Vidalakis Courtyard
  • Vidalakis Dining Hall
  • Catering Services
  • Policies & Guidelines
  • Reservations
  • Contact Faculty Recruiting
  • Lecturer Positions
  • Postdoctoral Positions
  • Accommodations
  • CMC-Managed Interviews
  • Recruiter-Managed Interviews
  • Virtual Interviews
  • Campus & Virtual
  • Search for Candidates
  • Think Globally
  • Recruiting Calendar
  • Recruiting Policies
  • Full-Time Employment
  • Summer Employment
  • Entrepreneurial Summer Program
  • Global Management Immersion Experience
  • Social-Purpose Summer Internships
  • Client Eligibility Criteria
  • Client Screening
  • ACT Leadership
  • Social Innovation & Nonprofit Management Resources
  • Develop Your Organization’s Talent
  • Centers & Initiatives
  • Student Fellowships

Southwest Airlines: A Case Study in Great Customer Service

Table of contents.

case study southwest airlines

Southwest Airlines serves over 126 million passengers each year, provides service to 121 airports across 11 countries and has maintained its nearly 72,000-employee roster with no involuntary furloughs or layoffs in its history. In addition to its commercial and financial success, Southwest Airlines is known for its excellent customer service. Southwest has built an impeccable reputation by putting customers first and ensuring its employees are content and financially secure.

This model of exceptional customer service can be extrapolated to fit the needs of almost any industry if you employ strategies that work for your business. We’ll explain why Southwest is so successful as a company and a customer service provider to help other businesses understand and implement its tenets. 

Southwest treats its employees well

Great customer service starts with happy employees. Southwest treats its employees well by backing individual employees’ decisions and providing everyone with quality employee benefits . For example, the company offers a 401(k) plan and matches contributions dollar-for-dollar up to 9.3 percent of the employee’s eligible earnings. It also offers a profit-sharing plan, an employee stock purchase plan, health and well-being rewards, as well as quality medical, vision and dental coverage.

In addition to benefits, Southwest also encourages professional development through in-person and online classes, mentorship programs, and even a Career Mobility Center that supports internal career advancement through advisement sessions and interview prep resources. The company also prioritizes community outreach, encouraging and incentivizing employees to give back to causes that matter to them.

Making employees brand advocates is your best defense against bad customer service.

Southwest makes excellent customer service its mission

According to a mission statement on Southwest’s website, “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.” 

Southwest outperforms competitors in customer service

In its last survey of the airline industry from 2018, the Temkin Group compared nine U.S. airlines on the quality of their customer experience – the sum of all a customer’s experiences and interactions with a brand. The strategy of focusing on customer experience is built around the needs of the individual customer over the lifetime of the customer-brand relationship.

The Temkin Group’s survey ranked each airline on the criteria of functionality (how well experiences meet customer needs), accessibility (how easy it is for customers to do what they want to do) and emotion (how customers feel about the experience).

Southwest Airlines earned the highest score every year the Temkin Experience Ratings were published from 2011 to 2018, except for 2015. In the most recent rankings, the company received the highest score in the airline industry, 76 percent – 10 percentage points higher than the industry average score of 66 percent. 

Over the years, Southwest Airlines has maintained high ratings among customers, even amid a global pandemic and overall declines in passenger satisfaction. According to the 2023 J.D. Power North American Airline Satisfaction Study , Southwest ranked highest in customer satisfaction for a second consecutive year for the economy and basic economy segment.

How Southwest Airlines emphasizes the customer experience

Southwest Airlines takes the following crucial steps to prioritize the customer experience:

  • Southwest offers multiple avenues for customer support. Customer experience is no longer just an in-person interaction or a phone call. It’s now online, in live chat and more. In addition to multiple phone numbers for different customer service issues, Southwest offers live chat (via mobile app), email and a self-help resource center, allowing multiple touch points and opportunities to delight customers .
  • Southwest adapts to meet customers’ evolving expectations. The airline invested over $2 billion to improve the customer experience. From improved real-time travel communications to bag tracking to bolstered self-service options, Southwest proactively meets passenger needs to make traveling more convenient and comfortable.
  • Southwest empowers employees. Southwest takes care of its employees, which, in turn, helps employees take care of its customers. Providing robust financial and wellness benefits and ongoing career development allows Southwest’s team to perform at its best and effectively support its customers.

Examining Southwest Airlines as a customer service case study can help other companies learn to provide a great customer experience and place customer service at the forefront of their mission and company culture.

How to provide excellent customer service

All businesses should strive to achieve Southwest’s exceptional customer service. However, many of its specific strategies are tailored to the airline industry and may not work for your organization. Here are a few additional methods any business can implement to give its customers the service they deserve.

1. Be responsive to issues.

Nothing is more frustrating than being put on hold for over an hour, especially if you’ve already paid for a product or service. Remember that your customer relationships don’t end after money has been exchanged. These relationships are long-term commitments that must be cultivated over time.

If you don’t have the time to answer calls all day, consider staffing your business with more agents or outsourcing customer service calls. Ensure all customer service reps and outsourced service agents use one of the best CRM software platforms to ensure consistency and informed help. You can also streamline your communication channels and preferences to accommodate as many customer inquiries as possible. For example, it’s easy to set up a chat feature or an FAQ page on your website to avoid being overwhelmed by calls. 

With so many options available to help your customers, there’s no excuse for leaving them in the dark when they have an issue.

2. Communicate beyond complaints.

Responding to problems swiftly is vital to maintaining a high level of customer service, but communicating with your audience shouldn’t stop there. Starting a weekly email newsletter or using X (formerly Twitter) as a customer support channel are great ways to stay in touch with your base.

A simple “thank you for thinking of us” when a customer tags your brand on social media can go a long way. It’s a simple, cost-free measure to set your business apart as one that truly cares about customer service.

Use proven customer service metrics and KPIs like customer satisfaction scores, net promoter scores and customer effort scores to improve your overall customer service.

3. Get to know your customers.

Customers love a personalized experience because it makes them feel heard. However, to ensure the personalized experience stays positive, you should understand the customer’s wants and needs. Maintaining this mindset will help ensure the customer trusts you and your company in the long run.

Almost every customer service representative has some kind of script they must stick to, but there are opportunities to veer off-book and personalize the experience. You could ask customers what they’ve been up to lately or why they chose your company, or just find a way to make them laugh. If you’re willing to go that extra mile, it can be the difference between keeping a customer and losing them.

4. Keep a positive attitude.

When trying to keep a positive attitude toward the customer, it can help to inhabit a service persona. How you speak to your customers can sometimes be more important than what you say. This approach allows you to connect with the customer on an emotional level. You’ll understand their explicit needs and better understand their overall attitude toward you and the company. If you focus on positive thinking and a positive attitude, customers will likely respond in kind.

Danielle Fallon-O’Leary contributed to this article. 

thumbnail

Get Weekly 5-Minute Business Advice

B. newsletter is your digest of bite-sized news, thought & brand leadership, and entertainment. All in one email.

Our mission is to help you take your team, your business and your career to the next level. Whether you're here for product recommendations, research or career advice, we're happy you're here!

  • Harvard Business School →
  • Faculty & Research →
  • April 2010 (Revised January 2013)
  • HBS Case Collection

Southwest Airlines: In a Different World

  • Format: Print
  • | Language: English
  • | Pages: 16

About The Authors

case study southwest airlines

James L. Heskett

case study southwest airlines

W. Earl Sasser

Related work.

  • Faculty Research
  • Southwest Airlines: In a Different World  By: James L. Heskett and W. Earl Sasser Jr.

case study southwest airlines

Case Study: Profitability Takes Flight, Southwest Airlines Unique Business Model Unveiled

Southwest Airlines is a renowned American low-cost airline established in 1967 and has since become one of the industry’s most successful and profitable carriers.

With its headquarters in Dallas, Texas, Southwest operates an extensive domestic network, serving more than 100 destinations across the United States.

Significance of Profitability in The Airline Industry

Profitability is a critical aspect of any business, and the airline industry is no exception. Achieving consistent profitability is a significant challenge in an industry characterized by intense competition, volatile fuel prices, and economic uncertainties.

However, Southwest Airlines has managed to stand out from its competitors with its unique and highly successful business model.

Southwest Airlines’ Unique Business Model

Southwest Airlines was founded on providing customers with low-cost, efficient, and reliable air travel.

From the outset, its founders aimed to differentiate Southwest from traditional carriers by implementing a business model that focused on simplicity, operational efficiency, and a strong emphasis on customer satisfaction.

Critical Elements of the Business Model

Here are the key elements of Southwest Airlines’ prestigious business model:

Low-cost operations

Southwest Airlines has distinguished itself as a low-cost carrier by implementing various cost-saving strategies.

These include utilizing a single aircraft type (Boeing 737) to simplify maintenance and training, operating from secondary airports to reduce fees, and minimizing unnecessary frills such as assigned seating and in-flight meals.

High Aircraft Utilization

Southwest maximizes the utilization of its aircraft by keeping them in the air for a significant portion of the day.

Quick turnarounds, efficient boarding processes, and high aircraft utilization rates contribute to cost savings and increased revenue potential.

Point-to-Point Routes

Unlike traditional hub-and-spoke models that many airlines employ, Southwest’s point-to-point route system allows direct flights between smaller airports, reducing transfer times and increasing operational efficiency.

This approach also enables Southwest to serve niche markets and respond quickly to changing demand.

Customer-Centric Approach

Southwest Airlines places a strong emphasis on customer service and satisfaction. Southwest has built a loyal customer base with its “Bags Fly Free” policy, no change fees, and friendly customer service.

The airline strives to provide a hassle-free and enjoyable flying experience, differentiating itself from competitors.

Efficient Workforce Management

Southwest focuses on building a stable and motivated workforce. The company’s employee-friendly policies and positive company culture have resulted in high employee satisfaction and productivity.

The airline’s efficient workforce management contributes to operational efficiency and cost control.

Case Study: Southwest Airlines’ Profitability

Southwest Airlines has consistently reported profits for several consecutive years, even during industry downturns and economic challenges.

This remarkable achievement sets Southwest apart from many other airlines struggling to maintain profitability.

Factors Contributing to Profitability:

Many different elements are responsible for the continuous progress of the airline. Some of the critical factors that played a crucial role in Southwest Airlines’ profitability include the following:

Strategic Route Planning

Southwest strategically selects routes that align with its business model, focusing on high-demand and high-frequency routes.

This approach allows the airline to optimize revenue potential while minimizing operational complexities.

Cost Leadership and Operational Efficiency

Southwest’s relentless focus on cost reduction and operational efficiency has significantly driven its profitability.

The airline maintains a competitive advantage in the industry by keeping costs low and implementing efficient operational practices.

Revenue Management Strategies

Southwest employs effective revenue management strategies, including dynamic pricing and capacity management.

These strategies ensure optimal seat utilization and maximize revenue per available seat mile (RASM).

Strong Customer Loyalty and Brand Reputation

Southwest’s commitment to customer satisfaction has resulted in a strong brand reputation and customer loyalty.

Repeat business and positive word-of-mouth recommendations contribute to sustained revenue and profitability.

Challenges and Limitations of Southwest’s Model

Here are some challenges and limitations faced by one of the most successful Airlines in the United States. 

Vulnerability to Fuel Price Fluctuations

Like any airline, Southwest is exposed to the volatility of fuel prices. Increases in fuel costs can significantly impact the airline’s profitability, as fuel represents a substantial portion of its operating expenses.

Fluctuations in fuel prices require Southwest to employ effective fuel hedging strategies and closely monitor its fuel efficiency to mitigate risks.

Limited International Presence

While Southwest has been highly successful in the domestic market, its international operations could be more extensive.

The airline primarily focuses on serving domestic destinations, which may pose challenges in expanding its market reach and tapping into lucrative international markets where competition may be fierce.

Potential Risks of Focusing On the Domestic Market

Relying heavily on the domestic market exposes Southwest to potential risks associated with economic fluctuations, regulatory changes, and geopolitical events that could impact domestic air travel demand.

Diversifying its operations to include more international destinations could mitigate these risks.

Southwest Airlines’ Response to Challenges

Fuel Hedging Strategies

Southwest employs fuel hedging strategies to mitigate the risks associated with fuel price fluctuations.

These strategies involve entering into contracts to secure future fuel purchases at predetermined prices, reducing the impact of sudden price increases.

Expansion of International Routes

Recognizing the growth potential in international markets, Southwest has gradually expanded its global operations.

By adding more international destinations to its network, the airline aims to diversify its revenue streams and reduce reliance on the domestic market.

Mitigation Plans for Market Risks

Southwest monitors market trends, economic indicators, and regulatory changes to adjust its operations and strategies proactively.

The airline maintains an elegant approach, quickly adapting to changing market conditions and mitigating potential risks.

If you want to know further, an inclusive case study solution can help you the right way.

Southwest Airlines case study solution , written by experts, lets you take a comprehensive look into the airline’s history, profitability model, challenges, how they tackled them, and many other aspects.

Conclusion:

Southwest Airlines has established a unique and highly successful business model that centers around low-cost operations, efficient utilization of resources, and a customer-centric approach.

Its focus on simplicity, operational efficiency, and customer satisfaction has contributed to its profitability and competitive advantage in the airline industry.

Southwest Airlines’ profitability stands out in an industry often plagued by financial challenges.

The airline’s ability to consistently generate profits can be attributed to its distinctive business model, which enables cost leadership, operational efficiency, and strong customer loyalty.

Southwest’s success serves as a valuable case study for the airline industry. It highlights the importance of innovation, adaptability, and a customer-centric approach in achieving profitability and sustainable growth.

Other airlines can learn from Southwest’s strategies and consider adopting elements of its business model to enhance their own competitiveness and financial performance.

Read more case studies here .

case study southwest airlines

Streamlyn Academy is a digital marketing institute that delivers Internet Marketing & Programmatic Advertising courses to industry executives, entrepreneurs, and recent graduates.

  • Digital marketing courses in Bangalore
  • #34, Koramangala 4th Block, Near Sony World Junction 80ft Road, AVS Layout, 20th L Cross Road Bengaluru, Karnataka 560034
  • +(91)-9036276981 , +(91)-9883790299

Quick Links

  • Our Courses
  • Certifications
  • Corporate Training
  • Hire From Us
  • Write for Us

Information

  • Privacy Policy
  • Terms & Conditions
  • Cookie Policy

Streamlyn Media

Google Publishing Partner

  • © Copyright 2015-2023 Streamlyn Academy | All rights reserved

case study southwest airlines

Your details have been submitted successfully.

Our team will get back to you shortly., we have received your message., someone from our team will contact you soon., thank you for enquiring about our course., our student counsellor will connect with you shortly., our academic counselor will contact you to schedule a demo as per your convenient time, for downloading our free digital marketing guide, we have sent the guide to the mail id provided. please check..

  • Bahasa Indonesia
  • Sign out of AWS Builder ID
  • AWS Management Console
  • Account Settings
  • Billing & Cost Management
  • Security Credentials
  • AWS Personal Health Dashboard
  • Support Center
  • Expert Help
  • Knowledge Center
  • AWS Support Overview
  • AWS re:Post

southwest company logo

Using AWS Security Hub, we now have the stronger security capabilities that we need."

Jon Barcellona Cybersecurity Engineering Director, Southwest Airlines

Automating Security Operations in a Massive Company

Texas-based Southwest is one of the world’s largest low-cost carrier airlines, with around 54,000 employees transporting 130 million passengers per year to 101 destinations across 11 countries. The airline was one of the earliest AWS Enterprise Customers, having first started using AWS services in 2010. Previously, the airline ran in-house technology in its data centers to manage flight schedules, forecast demand, schedule maintenance, achieve dynamic pricing for mobile and web sales, and respond to irregular events such as delay-causing weather. Southwest wanted to improve flexibility and accelerate value delivery, so in 2017, it began migrating its operations to AWS. Initially, Southwest operated in the cloud while continuing to use the same security operational model that it had developed for its data centers, but it soon realized that by adopting a cloud-native approach, it could maximize its capabilities. Moving to a shared responsibility model, in which AWS manages infrastructure on Southwest’s behalf, frees up the airline’s security teams to focus on bigger priorities—including detecting, preventing, and responding to security events.

Southwest chose AWS for its high availability, resiliency, and array of tools, which the development team could use to build out its security capabilities. “Migrating to AWS was an important step in creating better delivery velocity for our security applications,” says Jon Barcellona, cybersecurity engineering director at Southwest. “Using AWS tools makes it simpler to integrate, manage, and segment our applications naturally.”

Using AWS Tools to Facilitate High Visibility for Security Teams

Southwest built a security solution that uses AWS Security Hub to manage and collect data from various security services on AWS as well as from third-party security products. Southwest also uses custom rules in AWS Config , a service for recording and evaluating the configurations of AWS resources, to manage its various AWS services. Among the services that feed into AWS Security Hub is Amazon GuardDuty , a threat detection service that continually monitors for malicious activity and unauthorized behavior. Southwest also uses Amazon Inspector , which automatically assesses applications for exposure, vulnerabilities, and deviations from best practices. To initiate investigations, the airline uses Amazon Detective , which makes it simple to analyze, investigate, and quickly identify the root causes of potential security issues.

Southwest’s solution uses AWS Security Hub to gather events detected through Amazon GuardDuty, AWS Config, and Amazon Inspector. From there, the event information is aggregated regionally and fed to logs in Amazon CloudWatch , a monitoring and observability service. Finally, Southwest uses an adapter for Amazon CloudWatch logs to feed event information to the third-party enterprise security information and event-management solution, which aggregates data from many sources and performs event correlation with rich content to detect actionable security events. Events are continually monitored by the security operations center and are analyzed, contained, and eradicated as appropriate.

Using AWS Security Hub, various teams at Southwest—including the security operations center, threat intelligence team, incident responders, and application teams—can achieve high visibility into Southwest’s security posture. The solution reduced the time and labor required to implement over 350 automated security controls, and Southwest achieves high adherence to the associated security control objectives, which comprise its security posture. At a global level, Southwest scans over 600,000 resources across hundreds of AWS accounts each month, with 98 percent of resources passing security posture checks. Remediating the remaining 2 percent of resources is simple through AWS Security Hub. “Using AWS Security Hub, we now have the stronger security capabilities that we need,” says Barcellona.

Southwest uses AWS Security Finding Format (ASFF), a standard findings format, to build libraries that reduce the development time of future automated security controls. With a standard format in place, Southwest can implement complex test controls over multiple accounts. The airline has reduced development time for implementing new controls from 5–6 weeks to 1 week. Development ideation, production, and activation processes, which previously took years, now happen in months or even weeks. “AWS Security Hub standardized our data, almost like magic,” Walsh says. “We can now apply machine learning, artificial intelligence, and anomaly detection—things we couldn’t do before.”

Continuing to Mature the Company’s Cloud Structure

In the future, Southwest plans to simplify account management using AWS Identity and Access Management (AWS IAM), which lets users manage access to AWS resources and services securely. Southwest will use AWS IAM Access Analyzer , which identifies resources and accounts that are shared with external entities, to achieve additional visibility into the security risk of unintended access to resources and data.

By building a cloud-native security solution on AWS, Southwest has achieved the visibility, resiliency, and efficiency it needs to help keep its applications and sensitive data safe. “If our security system is not running, we’re not flying,” says Barcellona. “So having the robust security posture and capabilities we achieve on AWS is critical for us.”

Southwest Airlines Reference Architecture

case study southwest airlines

Ending Support for Internet Explorer

Southwest Airlines

Lean-agile transformation with safe ®.

case study southwest airlines

Southwest Airlines is famous for its employee-first culture, dedication to customer service, and sense of warmth, friendliness, and fun. And when it comes to meeting the urgent demands of technology development in a highly complex logistical environment, a thriving culture is just the start to meeting the challenge.

To live up to Southwest’s purpose of connecting people to what’s important in their lives through reliable, low-cost air travel, Southwest began its Agile transformation in 2018 in operations. The fantastic results led to SAFe ® adoption throughout Southwest.

Now four-plus years into their Agile transformation, more than 2,000 Southwest employees collaborate cross-functionally across the organization.

Quick Facts:

  • Operates at more than 120 airports across 11 countries worldwide
  • Carried 126 million customers in 2022
  • Operates more than 4,000 flights per day during peak season
  • Started SAFe transformation in 2018
  • More than 2,000 employees involved in SAFe across reservations, customer experience, crews, scheduling, training, aircrafts, ground operations, maintenance, and more

Key Outcomes:

  • Streamlined the number of steps and handoffs between business and technology and made them more predictable, saving time and money.
  • By adopting SAFe at the portfolio level, Southwest went from 7–9 months of planning in 2017, plus variable building, testing, and deploying timeframes (see timeline below) to releasing every iteration in 2020 
  • From 2018–2020, they saw increased deployment success and 5x faster time to market  (28 releases with 45% deployment success in 2018, to 349 releases and 93% deployment success in 2020)
  • Experienced better alignment around business value while measuring greater than 80% of business value delivered

Watch The Full Interview

case study southwest airlines

Back to: All Case Studies

Suggested case study: royal philips, privacy overview.

Brand Master Academy

  • Programs & Tools

Brand Case Study [Southwest Airlines]

Few brands ever achieve Cult Status, and no brand in the airline industry can boast a cult following quite like Southwest Airlines.

From a small interstate airline operating out of Dallas Texas where the brand was born back in 1967, Southwest now services over 100 destinations across North America and The Caribbean.

A story of hot pants, whisky, peanuts, caring and some light-hearted humour, this article breaks down the Southwest Airlines Brand in this  case study .

The Brand History

case study southwest airlines

The history of Southwest  began in 1967 at a hotel bar in San Antonio, Southwest founders Herb Kelleher and Rollin King took out a napkin and scribbled three points of a triangle representing their novel idea.

An airline that would connect the three main cities of Texas; Dallas, Huston and San Antonio.

For 8 years from 1971, Southwest Airlines operated as an interstate only carrier.

It wasn’t until 1979 when U.S. President Jimmy Carter deregulated air travel in the USA, did Southwest really take off.

case study southwest airlines

40 years later, the Southwest Brand has  achieved cult status  with its customers with a low cost, low stress no nonsense approach to air travel, which has seen it grow to become the largest airline operating in the U.S.

But how did it get there. What makes Southwest so different to all the other airline brands out there and why do their customers love them so much?

Case Study: Brand Positioning Strategy

case study southwest airlines

When the founders of Southwest were sitting in that bar in San Antonio, their conversation about what would make them different centred on pricing.

Founder Herb Kelleher summed up their position succinctly when he said

I can teach you the secret to running this airline in thirty seconds. This is it: We are the low-fare airline

Low cost pricing as a standalone strategy is nothing new and never tends to last long, but they weren’t selling a commodity that was easily picked up and sold at a cheaper price.

case study southwest airlines

They were building an airline from the ground up and  integrating this positioning strategy  into every single decision of operations making it next to impossible for existing, more established airlines to replicate.

Their deliberate decision to stock their fleet with only Boeing 737’s had a dramatic impact on their operating, maintenance and staff training costs that was unparalleled.

PRO  Brand Strategy BluePrint

Build brands like a pro brand strategist.

  • The exact step-by-step process 7-Figure agencies use to bag big clients through brand strategy
  • How to build brands that command premium fees and stop competing for cheap clients
  • How to avoid the expensive amateur mistakes that 95% of brand builders make to fast-track profit growth

case study southwest airlines

A Competitive Brand Advantage

case study southwest airlines

From the early days in Texas, Southwest has run a tight and efficient ship through their business operations.  A competitive advantage they’ve never relinquished .

Where the airline has really excelled however has been through a deep focus on customer experience, low-cost pricing and logistics solutions.

But Southwest is not all love cuddles and peanuts.

Their  outside the box thinking and innovation  has moved the industry forward and their  development of company culture has positioned them as an airline their motivated employees believe in.

Explore Brand Strategy Programs & Tools

Helpful brand personnel.

case study southwest airlines

We’ve all had bad experiences with air travel.

Having emigrated to Australia in 2001, I have traveled back to my home country of Ireland more times than I can remember so I’m well versed on how airline staff impact the travel experience.

Some make you feel like you’ve asked them to walk over hot coals when all you’ve asked for is an extra pillow, while others make you feel like they’d actually walk over hot coals for you.

case study southwest airlines

Southwest understands this gripe and  has gone to extraordinary lengths  to make sure the people they hire are aligned with the brand experience.

Helpfulness is a core value of the brand and  ensuring their employees are the most helpful in the industry has given them a distinct advantage.

A Flexible Brand Experience

case study southwest airlines

The Southwest Airlines leadership are people who understand the stresses of air travel and  make it their business to reduce that stress wherever possible .

To put it simply, Southwest  make flying easier .

Traditionally, the airline industry is full of red tape and “Gotcha” terms and conditions that sting customers for anything outside the “Buy your ticket and get on the plane” model.

case study southwest airlines

At Southwest, policies and procedures have been softened at every corner including a cancellation policy that would make other airline CEO’s look like they were sucking a lemon.

You want to cancel your flight 30 minutes prior to take-off? No Problem.

case study southwest airlines

Pricing Less And Rewarding More

case study southwest airlines

More often than not, a better overall brand experience is a differentiation strategy that  comes with a premium price .

And it makes sense. If you want the best services you can’t expect to pay the lowest price. Price and quality are the usual trade-off.

Not only do Southwest offer one of the best experiences in the business, they do it with the lowest prices which is a brand advantage accessible to them via their low operating cost strategy.

case study southwest airlines

Compared to their closest competitors such as  Delta Airlines  and  American Airlines  Southwest’s pricing is  far more affordable .

But Southwest doesn’t stop there. On top of the savings they afford their customers, they also lavish gifts on them through  one of the best rewards programs in the industry .

It’s no wonder their brand loyalty soars so high.

Want Actionable Brand Strategy Tips & Techniques?

100% PRIVACY. SPAM FREE

A Nimble And Innovative Brand

case study southwest airlines

Southwest’s flexible business model allows the airline to  stay ahead of the curve with nimble decision-making and forward thinking .

Always focused on customer experience, the airline regularly upgrades its fleet of airplanes and expands its army of loyal followers and service destinations.

Case Study: Target Market

case study southwest airlines

Commercial airline travel emerged after the Second World War though this wasn’t an inexpensive experience.

There were multiple classes including luxurious lounges where three course meals were served on bone china with champagne in crystal glasses.

Air travel up to the late 60’s was an exclusive luxury reserved for those who weren’t short of a dollar.

When Southwest emerged, they shook up the industry as the first “Budget Airline”.

An Everyday Target Audience

case study southwest airlines

So, who is Southwest’s  Target Market ?

Cost-conscious, no-frills travellers looking for the best value for their dollar.

Air travel wasn’t just for the wealthy anymore. Southwest expanded the market by slashing costs and today Southwest’s target audience includes

Young travellers
Businessmen and Women
Frequent Flyers
Holiday Makers

They’ve distances themselves from exclusivity and the segment that expects it and have masterfully appealed to their audience by focusing on what’s important to them.

Low cost, simplified air travel with a pleasant experience.

Case Study: Brand Messaging & Marketing

case study southwest airlines

Although their low-cost position put Southwest on the map, it’s not what has keep them there.

Today, budget airlines have flooded the market and have become a pain-point in-and-of-itself for many seasoned travelers.

The cost-cutting model has become so intense that bag size arguments and hairdryer unloading have become common scenes at check-in gates the world over.

This is why the other angle of their market position focus on the customer experience and their messaging is such a breath of fresh air.

Brand Language & Tone

case study southwest airlines

Southwest isn’t like other airlines . They don’t speak with a robotic corporate voice with overly corporate language and tones.

Southwest has such high brand advocacy rates because they are a brand of people, speaking to people, making connections just as people do.

Modern  brands are human brands and there a few examples better than Southwest Airlines

The Social Branding Approach

case study southwest airlines

Southwest started a 30-person “Social Business” department in 2015 that has become a  central figure across the entire business operations .

This social department has made the brand seem  even more human and approachable  as it’s used for everything from customer service to marketing to crisis management.

In 2016 the airline  suffered a massive technology failure  causing thousands of flights to be cancelled and an inevitable barrage of complaints from some of the 250,000 unhappy customers.

The  social team worked relentlessly to respond as many customer complaints as possible, which were all loaded with authenticity and humility.

We're so sorry to hear about the cancellation and we cannot thank you enough for your patience with our services today. ^AC — Southwest Airlines (@SouthwestAir) July 22, 2016

Branding With Human Emotion

case study southwest airlines

Let’s face it. When we think of airlines we don’t tend to get become overcome with affection because our memorable experiences are usually on the wrong side of the word “love”.

Southwest however, have  made it their mission to make as many of their customers feel that way about the brand .

Their messaging is warm, their manner is friendly, their approach is human and they do everything they can to show the “Love”.

This is a philosophy they’re so committed to, they use the “Ticker Code” “LUV” on the New York Stock Exchange and use a heart icon wherever the brand needs to be represented visually.

This is a  brand with personality  and authenticity that genuinely puts their customers first.

Brand Loyalty & Intimacy

case study southwest airlines

The terms brand loyalty and brand intimacy are interconnected and along with advocacy are  the holy grail of branding .

These terms are reserved  for brands that just get it .

They supersede transactional relationships and take a meaningful place in the hearts and minds of their customers.

Loyalty Is A Human Emotion

case study southwest airlines

Being human is a philosophy that Herb Kelleher adopted early on.

He  encouraged informality and wanted staff to have fun in their jobs . This human touch has remained a  philosophy of the brand  over 40 years later.

Today, employees are encouraged to be themselves and a strong brand culture and their belief in what they do is playing out at check-in desks and in the skies across America.

In this video, a flight attendant is captured doing things a little differently.

Brand Loyalty Leads To Brand Intimacy

case study southwest airlines

In their annual brand intimacy study MBLM ranked Southwest Airlines the most intimate brand in the travel industry for three years on the trot.

case study southwest airlines

According to MBLM:

Southwest has been able to distinguish itself and cultivate Brand Intimacy, creating a significant advantage because consumers are more willing to engage with, use, and pay a premium for intimate brands. Whether it is the heart logo or the focus on customer service, Southwest’s brand is built on an emotional foundation that is uncommon among travel brands.

Most notably,  Southwest Airlines is by far the most intimate travel brand  with the market segment earning under $100k. A sure sign of their strong position in the market for their intended  target audience .

case study southwest airlines

Over To You

Soutwest Airlines is an example of a brand that understands their audience.

First, they know their challenges and make it a priority to take those challenges away and make flying as easy as possible.

Then, they make the relationship about more than just a transaction.

Yes, Southwest solve a problem for their customers; yes their customers pay for that privilege but that’s not what drives brand intimacy.

Southwest customers feel affection towards the brand because they make their lives easier and they make human connections as they do it.

That is what every brand must strive for.

Let me know your thoughts in the comments below!

On-Demand Digital Program

Brand Master Secrets

Make the transition from hired-gun to highly valued brand strategist in less than 30 days. The systems, frameworks and tools inside this comprehensive program are all you need to level up.

brand master secrets boxset

Related Posts

case study southwest airlines

Love your in-depth analysis Stephen!

Cheers Vincent… glad you enjoyed it

Hello from Belfast. The best city in Ireland obviously. Brilliant stuff, been following your stuff for a while and you lay things out really clearly. Nearly ready for onboarding. that was bad sorry.

What about ye…. ???? ????

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Session expired

Please log in again. The login page will open in a new tab. After logging in you can close it and return to this page.

Get The FREE Framework Template PDF Now!

Create Strategic Brands Like A PRO

case study southwest airlines

Video Case Studies: PayPal helps improve the customer experience for Southwest Airlines

PayPal Editorial Staff

February 16, 2024

Together with PayPal, Southwest Airlines explores forward thinking solutions to further enhance their customer experience.

Southwest Airlines is the world's largest low-cost carrier, operating non-stop flights to more than 120 destinations across over 10 countries. With PayPal, Southwest customers can purchase airline tickets at southwest.com seamlessly and securely. PayPal and Southwest continue to expand their relationship to provide efficiency and an even better customer experience.

We spoke with Chris Priebe, Managing Director of Payments and Risk at Southwest Airlines to discuss how PayPal and Southwest continue to collaborate and innovate the future of payments.

Watch the testimonial videos to learn how PayPal helps improve the customer experience for Southwest Airlines customers.

Southwest Airlines Case Study (PDF)

Was this content helpful?

Related content

Sign up to stay informed.

Share your email to receive the latest enterprise updates, top stories, and industry reports.

*Required fields

I consent to PayPal contacting me by phone or by email, and to sending me product or industry information relevant to my query. I know I can unsubscribe at any time.

We use cookies to improve your experience on our site. May we use marketing cookies to show you personalized ads? Manage all cookies

case study southwest airlines

Southwest Airlines Report

Executive summary.

The main problem facing Southwest airline is mismanagement, economic and rival competition in the airline industry. The case study reflects back on the formation of Southwest Company in late 1966 by Rollin king who was then a San Antonio entrepreneur. The company grew after its incorporation with Lamar Muse in 1967 as its first CEO.

Through initial public offering of stock in 1971, the company was able to raise 7million US dollars, which was used to purchase planes and airline equipment. Since then the company has grown to become one of the biggest airline in the U.S. with a record of 96.3 million passengers to use the flight since its initiation. By 2007, the airline had a profit margin of 9.9 billion dollars annually with 34,000 employees and its flights in 64 cities in 32 states.

Political and legal impacts on the company came out as one of the key challenges of the airline during its initial stages of operation. Some of the legal predicaments were evident in 1970’s. One of the legal hurdles during this period was when local officials from Dallas –Fort Worth regional airport filed a case that challenged Southwest Air lines decision for not moving its flights from Dallas love field out to newly opened Dallas –Fort Worth regional airport.

This was due to loss of revenue to service the debt incurred during the construction of the airport. Another legal challenge involved the rival airlines that protested against the services offered by the airline to several smaller cities in Texas. The rival airlines argued that they served these markets well served and that the entry of Southwest Airlines resulted in costly overcapacity. Other regulatory issue involves congress passing the airline deregulation act in 1978.

Leadership aspect in the airline is also one of the factors that were established as an important issue that needed addressing. The paper illustrates leadership incompetence illustrated by management of southwest company. When Kelleher took the leadership of the firm, he portrayed a more social approach in the management of the airline.

He observed listened and encouraged employees. He believed as a leader that one needed to treat his employees as customers so that they would treat customer even better. Southwest Airline’s strategic objectives and their implementation plan have been widely discussed in the case study. These strategic objectives involve customer service and satisfaction, marketing and promotion, gradual expansion into new geographic markets, addition of flights, emphasis on safety, reliable operation and high quality maintenance.

Southwest organizational culture and management practices value employees and customers hence forming the foundations for the company’s culture. The firm’s mission is to make air travel affordable and ensure job security for its employees while maintaining good service quality.

The management practice involves recruiting, screening and hiring new employees into the company while ensuring sound employee relations. Other practices include training, compensation and promotion. Rivalry in the airline industry is displayed in the form of competition for the market share that has resulted to legal suits from rival firms. During the establishment of the company, there were massive efforts by rival firms to block the entrance of Southwest Airline in the market.

One practical course of actions by the company is to execute low fare as one of its strategy. The company has decided to deemphasize flights to congested airports and instead operate in airports adjacent to the metropolitans. This will reduce costs of the company and hence lead to fares for the customer. Another course of action involves gradual expansion into new market by the airline (Makishima and Paul, 2009).

In implementing this strategy, the company has ensured that flight personnel are have a good communication and interpersonal skills that are vital in ensuring good service to customers. They flight attendants have been encouraged to display outgoing characteristics and engage passengers in conversation in order to make them feel at home during the flight. This would be possible through training of personnel as the company has the financial capability to develop their employees.

Case Study Report

Summary of the case study.

Rollin King and his co founder Herb Kellerher instituted southwest airline in the late 1966. The Company was incorporated in 1967 into Texas aeronautics commission. After the incorporation, it began serving Dallas, Houston and San Antonio during its earlier flights. During these early stages of the airlines, competitors in the airline industry had tried to block the new company from operation.

In 1971, the company acquired new planes by raising 7 million dollar in an initial public offer. Since then, the airline has struggled to gain market share. In the process, the company has overcome regulatory hurdles brought about by the rival competitors. Southwest company strategy objectives include a good customer service, marketing, promotion, and low fair for its customers.

Analysis of report

The problems that are predominant in the case study relate to industrial forces acting on the southwest airline. These industrial forces are best-illustrated using porters five forces theory.

Porter’s 5 Industrial Forces

Porter’s 5 Industrial Forces.

Threats of new entrants

The entry of a new company into a market attracts opposition from existing operatives and players due to the potential threat that the new company poses on the market shares.

The existing firms will retaliate in a way that creates barriers for the new firm. These barriers may include economies of scale, cost switching and government policies and legal retaliations. For example, Southwest Company met an unprecedented rivalry in its attempt to gain entry into the Texas market.

During the airline incorporation in 1967, rival airlines in Texas made efforts to block the new airline to operate including a legal and regulatory proceeding in Texas Supreme Court.

Substitute product or service

Threats of substitute’s products and services will results to buyer inclination to substitute products and switching of cost strategies. Southwest-introduced twenty-dollar one-way fare that was below the twenty-eight and seven-dollar fare charged by rivals and it attracted a small number of passengers. However, the ability of the company to change its products and services (recruiting new air hostesses, changing new uniform of their crew and offering alcoholic beverages during day time flights) attracted more business for the airline and enabled the company acquire a powerful brand name.

Bargaining power of buyers

This is the impact and influence customers have on the firm’s products and services. When the market has powerful buyers, they can influence the kind of product or services provided by individual firms. The introduction of twenty-dollar fare strategy resulted to small number of customers attracted to the airline. In eighteen flights, there were less than 250 passengers on board. In efforts to regain the market share, Southwest airlines had to develop its products and services in a way that satisfied the needs of customers (Wong and Nicole, 2009).

Bargaining Power of Suppliers

An industry requires raw materials, labor and other vital supplies to manage its daily operations. This is the reason it is important for a firm to develop a good relationship with its suppliers to ensure consistency in operations. As the company grew, in 1971 Southwest airline needed to purchase three new 737 planes. Boeing agreed to supply the company with these planes at a discounted cost price from 5 million dollars to 4 million dollars. The supplier also agreed to finance 90% of 12 million dollars deal.

Rivalry among existing competitors

Rivalry among firms operating within the same environment results from brand identity, market share, product differences, threat of new entrants and intermittent over capacity among other factors. Southwest Corporation was involved in rival encounter with rival airline that resulted to court case suits. Rival airlines in Texas were against Southwest airlines operating in the market and they filed a legal suit to Texas Supreme Court.

During the 1970s, rival airlines protested southwest airline serving smaller cities in Texas. Reaction by competitor is because of threat to their market share and so they will try any methods to keep other competing firm away from its area of influence.

SWOT Analysis

In this analysis, both internal and external environment surrounding a firm are analyzed. Strengths and weaknesses represent the internal analysis of a firm while opportunities and threats are used to analyze the external environment under which the firm operates.

  • Good financial backing with revenue surpassing 9.9 billion mark in 2007.
  • The company has enough human resource advantage because it has a workforce of 3,400 employees.
  • The airline boats of an expanded geographical coverage has flights to 64 cities in 32 states.
  • Southwest airline has enough Material assets comprising of 527 jets that fly 3,400 flights.
  • Southwest airline has a strong brand name given that it is one of the largest airlines in America.
  • Strong company culture
  • Volume of passenger traffic.
  • Low revenue associated with low fares.
  • New flight routes that are congested.

Opportunities

  • Expansion to new geographical areas.
  • New flight routes.
  • Stiff competition from competitors.
  • Government policies on airline regulation.
  • Terrorism threats.
  • Natural disasters.
  • Economic instabilities such as recession.

Alternative Course of Action

Cost leadership is an important strategy to be considered by the airline. Cost leadership does not refer to low revenue but rather a cost price great than the price at breakeven point where there is realization of profit and at the same time significant volume of customer is realized.

Extensive advertisement of the airline is also important in reaching vast market. E-marketing is cost effective and yet efficient method to advertise the airline. The company can sell the airline brand name through the web advertisements. Online bookings and reservation can also be done through the company’s website.

Training and development of employees of the company would help improve service delivery to customers. Short courses on the latest best ways in customer service should be introduced in the employees’ training program. The company may also sponsor its crews to pursue courses that will help sharpen their skill in service management (Wong and Nicole, 2009).

The airline needs to be innovative in its operations in order to compete effectively in the competitive airline industry. Product and service development are key areas. Technology incorporation in airline services such as free internet facilities and entertainment provisions for passenger during the flight is an important step in the airline positioning itself.

Recommendation

The best course of action by the company is to initiate strategies that will ensure customer satisfaction. These strategies include product and service development. Any service or process that does not add up to customer satisfaction does not add value to the company since it is through the customer that the company earns revenue (Makishima and Paul, 2009).

Implementation

Proper employee training and development in service delivery skill and methods can implement the above recommendation. Product and service development is also a means in which this objective can be achieved. The strategies can be implemented over a given period such as three years or five years depending on the implementation plan established by the organization.

Makishima, P. (2009). Southwest will Start Logan run in august. Web.

Wong, N. (2009). Southwest to serve Logan by fall. Web.

  • Chicago (A-D)
  • Chicago (N-B)

IvyPanda. (2022, June 17). Southwest Airlines. https://ivypanda.com/essays/case-study-of-southwest-airlines/

"Southwest Airlines." IvyPanda , 17 June 2022, ivypanda.com/essays/case-study-of-southwest-airlines/.

IvyPanda . (2022) 'Southwest Airlines'. 17 June.

IvyPanda . 2022. "Southwest Airlines." June 17, 2022. https://ivypanda.com/essays/case-study-of-southwest-airlines/.

1. IvyPanda . "Southwest Airlines." June 17, 2022. https://ivypanda.com/essays/case-study-of-southwest-airlines/.

Bibliography

IvyPanda . "Southwest Airlines." June 17, 2022. https://ivypanda.com/essays/case-study-of-southwest-airlines/.

  • Dallas international airport (DFW)
  • Success Behind the Southwest Airlines Co.
  • An analysis of Southwest Airlines
  • Southwest Airlines: Corporate Culture Review
  • Southwest Airlines 2002: An Industry Under Siege
  • Southwest Airlines: The Key Issues
  • Southwest Airlines: Operational Efficiency Analysis
  • Why People Should Invest in Southwest Airlines
  • Operations Management in Southwest Airlines
  • Southwest Airlines Company’s Competitive Advantages
  • Volkswagen Group of America: IT Budgeting
  • Volkswagen of America: Prioritization of Projects
  • Vodafone: Developing a Total Communications Strategy in the UK Market
  • IBM Promotes Social Responsibility Goals
  • Strategic Management: Cisco Systems, Inc.
  • CRM Asignment Help
  • MBA Assignment Help
  • Statistics Assignment Help
  • Market Analysis Assignment Help
  • Business Development Assignment Help
  • 4p of Marketing Assignment Help
  • Pricing Strategy Assignment Help
  • CIPD Assignment Help
  • SWOT Analysis Assignment Help
  • Operations Management Assignment Help
  • Corporate Strategy Assignment Help
  • Change Management Assignment Help
  • Supply Chain Management Assignment Help
  • Human Resource Assignment Help
  • Management Assignment Help
  • Marketing Assignment Help
  • Strategy Assignment Help
  • Operation Assignment Help
  • Marketing Research Assignment Help
  • Strategic Marketing Assignment Help
  • Project Management Assignment Help
  • Strategic Management Assignment Help
  • Marketing Management Assignment Help
  • Business Assignment Help
  • Business Ethics Assignment Help
  • Consumer Behavior Assignment Help
  • Conflict Management Assignment Help
  • Business Statistics Assignment Help
  • Managerial Economics Assignment Help
  • Project Risk Management Assignment Help
  • Nursing Assignment Help
  • Clinical Reasoning Cycle
  • Nursing Resume Writing
  • Medical Assignment Help
  • Financial Accounting Assignment Help
  • Financial Services Assignment Help
  • Finance Planning Assignment Help
  • Finance Assignment Help
  • Forex Assignment Help
  • Behavioral Finance Assignment Help
  • Personal Finance Assignment Help
  • Capital Budgeting Assignment Help
  • Corporate Finance Planning Assignment Help
  • Financial Statement Analysis Assignment Help
  • Accounting Assignment Help
  • Solve My Accounting Paper
  • Taxation Assignment Help
  • Cost Accounting Assignment Help
  • Managerial Accounting Assignment Help
  • Business Accounting Assignment Help
  • Activity-Based Accounting Assignment Help
  • Economics Assignment Help
  • Microeconomics Assignment Help
  • Econometrics Assignment Help
  • IT Management Assignment Help
  • Robotics Assignment Help
  • Business Intelligence Assignment Help
  • Information Technology Assignment Help
  • Database Assignment Help
  • Data Mining Assignment Help
  • Data Structure Assignment Help
  • Computer Network Assignment Help
  • Operating System Assignment Help
  • Data Flow Diagram Assignment Help
  • UML Diagram Assignment Help
  • Solidworks Assignment Help
  • Cookery Assignment Help
  • R Studio Assignment Help
  • Computer Science Assignment Help
  • Law Assignment Help
  • Law Assignment Sample
  • Criminology Assignment Help
  • Taxation Law Assignment Help
  • Constitutional Law Assignment Help
  • Business Law Assignment Help
  • Consumer Law Assignment Help
  • Employment Law Assignment Help
  • Commercial Law Assignment Help
  • Criminal Law Assignment Help
  • Environmental Law Assignment Help
  • Contract Law Assignment Help
  • Company Law Assignment Help
  • Corp. Governance Law Assignment Help
  • Science Assignment Help
  • Physics Assignment Help
  • Chemistry Assignment Help
  • Sports Science Assignment Help
  • Chemical Engineering Assignment Help
  • Biology Assignment Help
  • Bioinformatics Assignment Help
  • Biochemistry Assignment Help
  • Biotechnology Assignment Help
  • Anthropology Assignment Help
  • Paleontology Assignment Help
  • Engineering Assignment Help
  • Autocad Assignment Help
  • Mechanical Assignment Help
  • Fluid Mechanics Assignment Help
  • Civil Engineering Assignment Help
  • Electrical Engineering Assignment Help
  • Humanities Assignment Help
  • Sociology Assignment Help
  • Philosophy Assignment Help
  • English Assignment Help
  • Geography Assignment Help
  • History Assignment Help
  • Agroecology Assignment Help
  • Psychology Assignment Help
  • Social Science Assignment Help
  • Public Relations Assignment Help
  • Political Science Assignment Help
  • Mass Communication Assignment Help
  • Auditing Assignment Help
  • Dissertation Writing Help
  • Sociology Dissertation Help
  • Marketing Dissertation Help
  • Biology Dissertation Help
  • Nursing Dissertation Help
  • MATLAB Dissertation Help
  • Law Dissertation Help
  • Geography Dissertation Help
  • English Dissertation Help
  • Architecture Dissertation Help
  • Doctoral Dissertation Help
  • Dissertation Statistics Help
  • Academic Dissertation Help
  • Cheap Dissertation Help
  • Dissertation Help Online
  • Dissertation Proofreading Services
  • Do My Dissertation
  • Business Report Writing
  • Programming Assignment Help
  • Java Programming Assignment Help
  • C Programming Assignment Help
  • PHP Assignment Help
  • Python Assignment Help
  • Perl Assignment Help
  • SAS Assignment Help
  • Web Designing Assignment Help
  • Android App Assignment Help
  • JavaScript Assignment Help
  • Linux Assignment Help
  • Coding Assignment Help
  • Mathematics Assignment Help
  • Geometry Assignment Help
  • Arithmetic Assignment Help
  • Trigonometry Assignment Help
  • Calculus Assignment Help
  • Arts Architecture Assignment Help
  • Arts Assignment Help
  • Case Study Assignment Help
  • History Case Study
  • Case Study Writing Services
  • Write My Case Study For Me
  • Business Law Case Study
  • Civil Law Case Study Help
  • Marketing Case Study Help
  • Nursing Case Study Help
  • ZARA Case Study
  • Amazon Case Study
  • Apple Case Study
  • Coursework Assignment Help
  • Finance Coursework Help
  • Coursework Writing Services
  • Marketing Coursework Help
  • Maths Coursework Help
  • Chemistry Coursework Help
  • English Coursework Help
  • Do My Coursework
  • Custom Coursework Writing Service
  • Thesis Writing Help
  • Thesis Help Online
  • Write my thesis for me
  • CDR Writing Services
  • CDR Engineers Australia
  • CDR Report Writers
  • Homework help
  • Algebra Homework Help
  • Psychology Homework Help
  • Statistics Homework Help
  • English Homework Help
  • CPM homework help
  • Do My Homework For Me
  • Online Exam Help
  • Pay Someone to Do My Homework
  • Do My Math Homework
  • Macroeconomics Homework Help
  • Research Paper Help
  • Edit my paper
  • Research Paper Writing Service
  • Write My Paper For Me
  • Buy Term Papers Online
  • Buy College Papers
  • Paper Writing Services
  • Research Proposal Help
  • Proofread My Paper
  • Report Writing Help
  • Story Writing Help
  • Grant Writing Help
  • CHCDIV001 Assessment Answers
  • BSBWOR203 Assessment Answers
  • CHC33015 Assessment Answers
  • CHCCCS015 Assessment Answers
  • CHCECE018 Assessment Answers
  • CHCLEG001 Assessment Answers
  • CHCPRP001 Assessment Answers
  • CHCPRT001 Assessment Answers
  • HLTAAP001 Assessment Answers
  • HLTINF001 Assessment Answers
  • HLTWHS001 Assessment Answers
  • SITXCOM005 Assessment Answers
  • SITXFSA001 Assessment Answers
  • BSBMED301 Assessment Answers
  • BSBWOR502 Assessment Answers
  • CHCAGE001 Assessment Answers
  • CHCCCS011 Assessment Answers
  • CHCCOM003 Assessment Answers
  • CHCCOM005 Assessment Answers
  • CHCDIV002 Assessment Answers
  • CHCECE001 Assessment Answers
  • CHCECE017 Assessment Answers
  • CHCECE023 Assessment Answers
  • CHCPRP003 Assessment Answers
  • HLTWHS003 Assessment Answers
  • SITXWHS001 Assessment Answers
  • BSBCMM401 Assessment Answers
  • BSBDIV501 Assessment Answers
  • BSBSUS401 Assessment Answers
  • BSBWOR501 Assessment Answers
  • CHCAGE005 Assessment Answers
  • CHCDIS002 Assessment Answers
  • CHCECE002 Assessment Answers
  • CHCECE007 Assessment Answers
  • CHCECE025 Assessment Answers
  • CHCECE026 Assessment Answers
  • CHCLEG003 Assessment Answers
  • HLTAID003 Assessment Answers
  • SITXHRM002 Assessment Answers
  • Elevator Speech
  • Maid Of Honor Speech
  • Problem Solutions Speech
  • Award Presentation Speech
  • Tropicana Speech Topics
  • Write My Assignment
  • Personal Statement Writing
  • Narrative Writing help
  • Academic Writing Service
  • Resume Writing Services
  • Assignment Writing Tips
  • Writing Assignment for University
  • Custom Assignment Writing Service
  • Assignment Provider
  • Assignment Assistance
  • Solve My Assignment
  • Pay For Assignment Help
  • Assignment Help Online
  • HND Assignment Help
  • SPSS Assignment Help
  • Buy Assignments Online
  • Assignment Paper Help
  • Assignment Cover Page
  • Urgent Assignment Help
  • Perdisco Assignment Help
  • Make My Assignment
  • College Assignment Help
  • Get Assignment Help
  • Cheap Assignment Help
  • Assignment Help Tutors
  • TAFE Assignment Help
  • Study Help Online
  • Do My Assignment
  • Do Assignment For Me
  • My Assignment Help
  • All Assignment Help
  • Academic Assignment Help
  • Student Assignment Help
  • University Assignment Help
  • Instant Assignment Help
  • Powerpoint Presentation Service
  • Last Minute Assignment Help
  • World No 1 Assignment Help Company
  • Mentorship Assignment Help
  • Legit Essay
  • Essay Writing Services
  • Essay Outline Help
  • Descriptive Essay Help
  • History Essay Help
  • Research Essay Help
  • English Essay Writing
  • Literature Essay Help
  • Essay Writer for Australia
  • Online Custom Essay Help
  • Essay Writing Help
  • Custom Essay Help
  • Essay Help Online
  • Writing Essay Papers
  • Essay Homework Help
  • Professional Essay Writer
  • Illustration Essay Help
  • Scholarship Essay Help
  • Need Help Writing Essay
  • Plagiarism Free Essays
  • Write My Essay
  • Response Essay Writing Help
  • Essay Editing Service
  • Essay Typer
  • APA Reference Generator
  • Harvard Reference Generator
  • Vancouver Reference Generator
  • Oscola Referencing Generator
  • Deakin Referencing Generator
  • Griffith Referencing Tool
  • Turabian Citation Generator
  • UTS Referencing Generator
  • Swinburne Referencing Tool
  • AGLC Referencing Generator
  • AMA Referencing Generator
  • MLA Referencing Generator
  • CSE Citation Generator
  • ASA Referencing
  • Oxford Referencing Generator
  • LaTrobe Referencing Tool
  • ACS Citation Generator
  • APSA Citation Generator
  • Central Queensland University
  • Holmes Institute
  • Monash University
  • Torrens University
  • Victoria University
  • Federation University
  • Griffith University
  • Deakin University
  • Murdoch University
  • The University of Sydney
  • The London College
  • Ulster University
  • University of derby
  • University of West London
  • Bath Spa University
  • University of Warwick
  • Newcastle University
  • Anglia Ruskin University
  • University of Northampton
  • The University of Manchester
  • University of Michigan
  • University of Chicago
  • University of Pennsylvania
  • Cornell University
  • Georgia Institute of Technology
  • National University
  • University of Florida
  • University of Minnesota
  • Help University
  • INTI International University
  • Universiti Sains Malaysia
  • Universiti Teknologi Malaysia
  • University of Malaya
  • ERC Institute
  • Nanyang Technological University
  • Singapore Institute of Management
  • Singapore Institute of Technology
  • United Kingdom
  • Jobs near Deakin University
  • Jobs Near CQUniversity
  • Jobs Near La Trobe University
  • Jobs Near Monash University
  • Jobs Near Torrens University
  • Jobs Near Cornell University
  • Jobs Near National University
  • Jobs Near University of Chicago
  • Jobs Near University of Florida
  • Jobs Near University of Michigan
  • Jobs Near Bath Spa University
  • Jobs Near Coventry University
  • Jobs Near Newcastle University
  • Jobs Near University of Bolton
  • Jobs Near university of derby
  • Search Assignments
  • Connect Seniors
  • Essay Rewriter
  • Knowledge Series
  • Conclusion Generator
  • GPA Calculator
  • Factoring Calculator
  • Plagiarism Checker
  • Word Page Counter
  • Paraphrasing Tool
  • Living Calculator
  • Quadratic Equation
  • Algebra Calculator
  • Integral Calculator
  • Chemical Balancer
  • Equation Solver
  • Fraction Calculator
  • Slope Calculator
  • Fisher Equation
  • Summary Generator
  • Essay Topic Generator
  • Alphabetizer
  • Case Converter
  • Antiderivative Calculator
  • Kinematics Calculator
  • Truth Table Generator
  • Financial Calculator
  • Reflection calculator
  • Projectile Motion Calculator
  • Paper Checker
  • Inverse Function Calculator

Online Free Samples

Southwest Airlines Case Study: A Comprehensive Analysis Of The Aviation Industry

Task: Conduct a strategic analysis on the southwest airlines case study.

Introduction The report on the southwest airlines case study majorly focuses on highlighting the major approaches and frameworks to achieve a higher level of efficiency and performance in the organizations by implementing the concepts of strategic management. The case study of the first-ever cheap travel service of America, Southwest Airlines is considered for analysis in this research. The major challenges that have been witnessed in the aspect of implementing new leadership management in southwest airlines by the year 2001 have been considered for analysis in this report. The listed challenges would also have significance in the dynamic variation of the southwest culture and the increased expenditure in transportation by the hike in wages and fuel. The report on the analysis of Southwest airlines case study would also focus on the expansion activities commenced by the managing body of the company. The succeeding discussion would lead to clarity over the present stature of the southwest airlines company and the associated facts. After providing the readers with in-depth clarity, the report would further move on in analyzing the external environment of southwest airlines and the strategies adopted to balance the associated dynamics. The major objective of this report is to investigate how southwest airlines has attained a highly competitive advantage in the transportation business and placed itself among the top five performing companies in the USA. In the posterior section of this report, various academic pieces of literature that have laid the foundation for the framework implied in the southwest airlines case study like Porter’s Generic Strategies and Goolsby Leadership Model is discussed. Porter's Generic Strategies would deal with the existing competition in the operational market and the associated cost-effective measures, and The Goolsby Leadership Model would highlight more about the cultural aspect. It is only after analyzing these two academic concepts that the other theoretical concepts are integrated into this Southwest airlines case study. In the final section of this report, certain valuable recommendations are listed down, which would improve the output of the company.

Southwest airlines case study

Problem Analysis The context of change in leadership by the year 2011 in Southwest airlines is majorly considered as the point of analysis in this report. The instance of leadership change occurred when James F. Parker was promoted to the post of the chief executive officer from General counsel, and Colleen C. Barette was promoted to the post of the chief operating officer from the designation of vice president for customers by Herb Kelleher. A substantial change in the organizational culture has been witnessed by the sudden leadership change in the company (Milliman et al., 1999). A considerable gap was developing between the higher authorities, managing bodies, and the employees instead of working as a team towards achieving the organizational goal. The managing team used to get involved at a personal level with employees like taking part in the birthday celebration and similar events before the leadership changed.

The new policies implied by the changed leadership had made it difficult for the managers to maintain the previous approach with the subordinate employees. The new culture of considering the warm relationship between the management and employees as absurd gradually started rising in the working environment of Southwest airlines. A higher level of agitation and frustration was displayed by the workers union regarding this new hostile environment (Boguslaski & Lee, 2004). It has been prominently argued by the employees of the Southwest airlines company that the managing team spent most of their time behind the office. However, it was being argued by the managing team that the new policies implied by the new leadership while dealing with the worker’s unions would sabotage the existing culture in the organization. It has been observed under the study conducted in this report that the hike in the magnitude of employees and the associated growth of the company in the market has posed a significant challenge to the existing organizational culture.

The management of the company was also facing additional challenges by the indiscriminate increase in the wages and cost of fuel. By the year 2006, the expenditure on average seat mile (ASM) had raised to 8.8 cents, whereas it was just 7.07 cents in 1995 (Morrison, 2001). The increased expenditure and the reduced profit margin have compelled the higher authority of the company to take some strict and effective actions. It has been observed that the reduction of the cost is very difficult in the existing scenario and hence the only viable option before the company is to reduce the appointed human resources significantly and increase the fare charges to a moderate level. Though both of these policies were strictly contradicting the existing organizational culture and hence raised some skirmishes.

The rising of new entrants in the business aspect of low fare division had posed a new imminent challenge before the management of the company. The major competitors had copied the business model of the Southwest airlines case study which compelled the managing team to imply the restructured and updated version of the existing business model. The major intent of the company to modify the existing business model was to attract a higher magnitude of potential clients and customers. As a part of this strategy, the company had included various entertainment systems and leather seats at the same charges for travellers. The new business model was extremely beneficial for the company and had placed it as one of the most successful companies in the USA in just a few years. The new challenge before the company was the uncertainty whether the existing customer base would keep on preferring the service of the company if there a new substitute at the same price, which would provide better service. The report on Southwest airlines case study would investigate the extent to which the business would get impacted by the variation in competition, culture, and cost parameters. The question of whether the departure of Kelleher had created any impact on the business of the company is also another issue that should be further explored.

Strategic analysis of the company presented in this Southwest airlines case study It was in the year 1971 that the company Southwest airlines shifted from being a small Texas carrier to the fourth-largest airline company in the country. The analysis of the strategic management conducted before the commencement of leadership change is conducted in the initial section. The company displayed a very accelerated growth before the sluggishness caused by the new leadership change. There has been a higher clarity over the expectation of the higher authorities from the subordinate workers, and the whole human resource had engaged passionately to attain the common goal of the organization. It was the collective effort of the staff employed in Southwest airlines that made the company one of the top-grossing companies in America. The population of America utilized the cheap and leisure travel experience offered by Southwest airlines. The company has focused on point to point short interstate trips rather than challenging the well-established aviation companies which focused on flying through the international routes. Rather than acquiring the majority of market shares, the management of the company has focused on a higher magnitude of profit turnover (Bunz & Maes, 1998).

Southwest airlines case study

Cost Awareness The company has strictly followed the policy of providing customers with premium quality services at a very affordable and cheap price. Along with the customers, the company has also focused on employee satisfaction. The company should keep stress on reducing their business expenditure so that the aviation service could be provided at the minimum possible price. Thus the management of the company has devised out strategies to increase the efficiency and quality of the services along with decreasing the overall expenditure. The processes and services of the company have been upgraded over the years, and a much more introspective nature had been implied to increase the cost savings. The major stockholders of Southwest airlines, like its suppliers, employees, and customers, have witnessed the amiable environment of respect and trust in the organization. The parameter of ethical integrity, abnegations of personal matters in the work environment, anti-corruption attitude, etc. are being heavily expected from the employees of the company. The same level of ethical standards is expected from the suppliers of the company. Cultural diversity is efficiently identified in the work culture of both the employees and the suppliers (Smith, 2004).

As mentioned in the earlier section of this Southwest airlines case study, reducing the expenditure by reducing the inefficient factors has always been the primary motive of the managing team of the Southwest airlines. The business operations have simplified to a significant level to reduce the functioning expenditure. Various tools like offline reservation system, service without a meal, uniform style of aircraft, tickets being used as the cash register receipts, etc. have been implied by the managing team of the Southwest airlines company to bring down the cost for output. It is well understood by the staff members of Southwest airlines that the aeroplanes could only generate revenue when they are used for air transportations trips. To work according to this principle, the company has implied the point to point strategy. The theories of the hub-and-spoke and higher average velocity have well implied in serving the cause of reduced cost.

The company has stopped providing complimentary dishes and free meals on the flights, and instead of it, the travellers were provided with some sort of beverages or other light snacks which helped them in providing tickets at very low fare. The company had devised up the strategy of reduced turnaround time for the workers to provide more strength to the cost advantage measures. The pilots who worked in Southwest airlines were mandated to fly a higher magnitude of working hours when compared to that of other aviation companies. The aspect of time management was well mastered by the employees and management of the company.

Just by avoiding the supply of ticket copies to the customers, the company could just supply the travellers with soft copies through email or other messaging platforms. The use of official portal and company websites could be used to give the customers with required information in a cost-effective way. The same platform could be utilized by the company to publish their contact details, annual reports, vacancy in the job, product brochures, etc. It was majorly argued by Gary Kelly, the CEO of Southwest Airlines that the websites of the company have significantly contributed to mitigating the huge financial gap created by the increased level of fuel prices. By eliminating the involvement of travel agents, the company was able to provide its services at a ten times lower price to the customers. By employing the reservation staff retained by the company itself, the cost was further reduced five times. The best exclusive feature of Southwest airlines is that it charges only 1 $ as a booking charge and the management of the company is endorsing some extra effort to reduce this cost (Freiberg & Freiberg, 1998). The efficient use of the most modern internet tools has helped the company in reducing operational expenditure.

Effective Internal Marketing The culture of Southwest spirit is deep-rooted among the hearts of the employed staff members. It is encouraged in the official environment of the company to treat every colleague as a family member. The good culture followed in the company ensures that the components of high communication ability and the better interpersonal relationship would not get worn down even if Kelleher would leave the organization. The sort of dedication and work ethic would remain among the employees even if he decides to leave Southwest airlines (Czaplewski et al., 2001).

The aspect of customer satisfaction and the related services are highly being focused on by Southwest airlines. Not only the customers but also the employees of the company are being treated courteously to develop a high level of satisfaction and is being strictly implied as a part of the company policy. The same factor makes the official environment of Southwest airlines, one of the most amiable and fun places to work in.

The working culture in Southwest airlines encourages the employees to serve the customers in the best possible manner by following an innovative and fun approach. Though at the same time, the primary objective of making a profit should not be disregarded. A separate set of principles and working culture is followed by the employees appointed in the Human resource department, which is also termed as The People Department in Southwest airlines. The human resource department of the company appoints the staff by taking into account their attitude and later are trained for developing further skills.

The approach of first satisfying the employees before the customers are followed in the policies of Southwest airlines. The same policy of not making any compromise in the satisfaction of the employees has turned out to be the major factor in the success of the company. If said in a theoretical manner, the Market – Focused Management Model is implied in the organizational format of Southwest airlines. The culture followed in the company mandates that the higher authorities should endorse their trust in the performance and decisions made by the subordinate employees since there is a fair chance of customers being wrong (Miles & Mangold, 2005).

The human resource department of Southwest airlines is open enough to appoint candidates with absolutely no experience as an intern of the company. The company provides such candidates detailed training and a very apt atmosphere to learn many crucial skills. The new candidates would get exposure to very experienced officials in the working culture of the Southwest and opens up a Pandora of opportunities for them. The new approach of training the new employees would empower them to take the responsibilities and carry out the required duties when the demand and situation arrives. The proper understanding of the major challenges faced by various departments in the organization would help the employees in performing the duties in the most appropriate manner.

The major policy put forward by Southwest airlines before its employees are that the whole company is a single-family. The major example which justifies this concept is the profit-sharing plan followed in the company. The celebration followed by employees is well encouraged by the management of the company. Every person associated with the company is well considered by the authorities.

The hygiene of the aircraft retained by the company is considered to be the collective responsibility of every staff since every employee of the family is considered to be a single-family. It is the collective effort of the ground duty, which makes the aircrafts ready again to take off for the next service. It is by dint of rapid turnaround service of the company that the aircraft is made ready within twenty minutes for another round of the trip. The internal design of each aircraft is altered and customized by the company to facilitate speedy service and easy maintenance by the ground staff.

Only the candidates with a particular level of creativity are selected in the Southwest aviation company, and hence every employee has their own personality. The customer is provided with a very comfortable environment since the humorous interaction, appropriate clothing, and interactive broadcasting are carried out by the staff members. The company has devised out certain tools to reduce the stress of travellers by providing them with entertainment at no expenditure. Just focusing extremely on the security of the passengers may build a barrier between the customers and the employees. Displaying personality would sometimes get difficult when the individual is working in a professional environment (Ren, 2020).

It is proven behaviour that a person would feel highly comfortable and thus provide maximum efficiency when they are wearing their favourite dress or uniform. The company management has devised out certain other ways that would help the employees to become much more comfortable while in the working environment. The competitors of Southwest airlines have just merely copied the business model to attract a larger market share of the consumers. Since most of the employees are emotionally connected with the company, a higher level of dedication is delivered by them. These are some of the major factors which have led the company towards immense success.

Organizational analysis The concepts of code of conduct and the lean structure tools are implied in the business structure of Southwest airlines. The mode of cross-communication is made possible by implying the lean structure theories. The staff members are provided with high accessibility and freedom to provide their valuable suggestions and recommendations to the respective directors or even the presidents. The form of hierarchy used in Southwest airlines is quite simple, which makes it very easy for the managers to manage the activities of the subordinates. The particular system helps the managers to conduct a clear and direct form of communication. The personalities appointed at a higher position in this company are not inaccessible to the subordinate workers. Every person in the company has access to even the office of president. It has been witnessed in the company that the leaders were even actively involved with the staff members of the baggage handling department. The particular form of the official environment would provide the workers with a very higher level of confidence and freedom (Richards, 1996).

It has been particularly identified by the organization that the real factor of ownership could not be identified by the magnitude of shares owned by a particular entity or person. It is the will to make a positive change in the existing case that is considered to be the primary parameter for the level of ownership. The employees in the organizations are more encouraged to find the solution for the emerging issue rather than approaching seniors for the answers for every challenge. Whether the employee is a flight attendant or an engineer, the recommendation put forward by them would obviously be considered as valuable one by the higher authorities of the company.

It is believed by the managing team of the Southwest airlines company that the more knowledge an employee holds, the more that individual would care about and contribute to the institution. Every employee in the organization would have access to every crucial data of the organization. The employees of the company have a good concern over the profit of the company since it directly affects the security and certainty of the income. Hence every staff member would actively participate in drafting the money-saving strategies that if implied, would help the company in generating a high level of profit.

Effective external marketing strategies The passenger of the companies are always focused on being made comfortable and delighted, and as a part of it, they are told interesting stories and jokes. The approach would make the passengers select the same flight service of the company in the future. The gap that occurs due to the absence of other forms of entertainment could hence be effectively reduced. It would be very hard to maintain the enthusiasm of the passengers when the flights are very long. Hence the Southwest airline should focus thoroughly on entertainment facilities for the aircraft which conducts distant journeys. It is not a feasible idea to include stewards in every flight, since significant passenger space would be occupied by them. The option is hence not practical in every instance of aviation flights. It is hence highly recommended to the Southwest airlines company that the flights should be installed with very advanced entertainment technologies so that a very satisfying experience could be given to the passengers. However, the same action would force the company to increase its charges to regular passengers.

The company should focus more on including the cheaper mode of entertainment in the aircraft so that the task could be done very efficiently. Though the same approach of installing cheaper products would turn out defective in the long run, and the company may have to suffer a larger range of loss rather than using premium products. The company of Southwest airlines retains a lot of aircraft which reach up to the count of 300. Even providing cheap newspapers in every aircraft would pose a huge financial burden over the reserve of the companies. Providing newspaper may seem initially very cheaper for the management of the company though including advanced electronic gadgets would turn out way cheaper in the long run for the company. The cost of including entertainment facilities in the aircraft used for long trips would turn out to be very expensive for the company (Hallowell, 1996).

Analyzing the external environment of Southwest airlines There are many external factors that make a direct impact on the business of Southwest airlines organizations. Even though there occurs a large economic crisis in the country, the company would sustain its dominating position in the market. In the local market of domestic aviation services of the United States, the company of Southwest airlines is considered to be the best among every other option. The company has not only proven its brilliance in attracting a wide range of customers but also in adapting itself to the needs and requirements of the customers. In contrast, other aviation companies are struggling even to sustain in the business because of the increasing fuel prices. Most of the companies have lost a significant part of their market share by increasing the ticket charges (Heskett & Sasser, 2010).

As per the Southwest airlines case study, it should also be understood by the readers that Southwest airlines were also significantly hurt by providing the customers with cheaper tickets. It was in the year 2008 when the company had faced a huge challenge since the oil prices touched the record price. Due to the unprecedented price hike in gas prices on the global level, aviation companies found it extremely hard to sustain in the business. The factor of increased gas prices was further complemented by the challenges like a stagnant economy which resulted in very poor ticket sales which consecutively led to the insolvency of many other aviation companies. The companies that have faced the extreme financial crisis were those which operated on low fares. And it was in the same category that the low-cost carrier services of Southwest airlines would be labelled. However, the company has managed to escape this dreadful fate.

The majority of the passengers were concerned about the fare charges because of the stagnant economy. The services of Southwest airlines were chosen as the most preferred service by the local citizens of the USA. Apart from the financial aspects, the company has also faced some challenges from the cultural aspects since most of the terrorist organizations were targeting the aviation service. The increased fear had forced the public to choose the alternative mode of transportation. The policies implied by governments like the Deregulation act of 1978, which allowed other aviation giants to enter the local market. The move had created large pressure on the local aviation companies, and in the initial 10 years, around 150 companies related to aviation were declared as insolvent. Though the group of Southwest airlines had survived these challenges, the component of federal taxes is still posing some risks to the operation of the company (Raynor, 2011).

Various techniques and tools have been implied by the Southwest group to increase the turnover by minimizing the expenditure. The company has relied heavily on cost-reducing tools rather than just adopting the flexible approaching methods. It is the Southwest airlines case study that has displayed a standard for technological advancements before other aviation industries. It was Southwest airlines that had first established its formal website and official portals.

SWOT Analysis In the below section of this article on Southwest airlines case study, we have conducted a detailed SWOT analysis for a better understanding of the external environment.

Conclusion The article on Southwest airlines case study would throw light on the good business practices to be followed in the aviation industry. The instance of Southwest airlines proves that the factor of integrity is of the primary moral character to be followed in the international business. The employees of the company would require to sustain their integrity so that a collective approach could be made to attain the maximum output. The significance of efficient leadership and the business culture followed in an organization is highlighted in the above article on ‘Southwest airlines case study”. The higher authority should keep on altering their approach as per the demands of the customers and should always focus on eliminating the skirmishes within the organization by focusing on the concerns of employees. The study has proposed that apart from time management, the factor of energy management also plays a significant role in the success of the aviation business. Apart from implying the visionary ideas imminently, the leadership should try to adjust with the traditional framework that the employees are following for a long period. By reviewing the dynamics and business processes, as mentioned in this Southwest airlines case study, it could be ascertained that the Goolsby leadership style would be the most appropriate and suitable one for the organization. Since this leadership style focuses on the parameters of Integrity, Courage, and Impact, higher productivity could be observed in the aviation business.

We hope that you found this article Southwest airlines case study, significant for your academic submission. Thank You. Stick on with us for similar solutions and academic help services.

References Boguslaski, C., Ito, H., & Lee, D. (2004). Entry patterns in the southwest airlines route system. Review of Industrial Organization, Southwest airlines case study, 25(3), 317-350.

Bunz, U. K., & Maes, J. D. (1998). Learning excellence: southwest airlines’ approach. Managing Service Quality: An International Journal.

Czaplewski, A. J., Ferguson, J. M., & Milliman, J. F. (2001). Southwest Airlines: How internal marketing pilots success. Southwest airlines case study, Marketing Management, 10(3), 14.

Freiberg, K., & Freiberg, J. (1998). Nuts!: Southwest Airlines' crazy recipe for business and personal success. Southwest airlines case study, Crown Business.

Hallowell, R. (1996). Southwest Airlines: A case study linking employee needs satisfaction and organizational capabilities to competitive advantage. Southwest airlines case study, Human Resource Management, 35(4), 513-534.

Heskett, J. L., & Sasser, W. E. (2010). Southwest airlines: in a different world. Southwest airlines case study, Harvard Business School Entrepreneurial Management Case, (910-419).

Miles, S. J., & Mangold, W. G. (2005). Positioning Southwest Airlines through employee branding. Southwest airlines case study, Business horizons, 48(6), 535-545.

Milliman, J., Ferguson, J., Trickett, D., & Condemi, B. (1999). Spirit and community at Southwest Airlines. Southwest airlines case study, Journal of organizational change management.

Morrison, S. A. (2001). Actual, adjacent, and potential competition is estimating the full effect of Southwest Airlines. Southwest airlines case study, Journal of Transport Economics and Policy (JTEP), 35(2), 239-256.

Raynor, M. E. (2011). Disruptive innovation: the Southwest Airlines case revisited. Southwest airlines case study, Strategy & Leadership.

Ren, J. (2020). Fare impacts of Southwest Airlines: A comparison of nonstop and connecting flights. Southwest airlines case study, Journal of Air Transport Management, 84, 101771.

Richards, K. (1996). The effects of Southwest Airlines on US airline markets Southwest airlines case study.

Smith, G. (2004). An evaluation of the corporate culture of Southwest Airlines. Measuring Business Excellence, Southwest airlines case study.

CHECK THE PRICE FOR YOUR PROJECT

Number of pages/words you require, choose your assignment deadline, related samples.

  • Navigating Professional Growth: A Reflection on Co-operative Education Experience at Post Haste
  • Adapting Strategies: Navigating the Impact of Macro-Environment Factors on Kroger's Marketing Approach
  • Harmony in the Park: A Sustainable Outdoor Music Event Marketing Plan
  • Unveiling Marketing Strategies: A Personal Evaluation of Samsung S22 Purchase
  • Journey through Entrepreneurial Leadership: A Reflection and Case Study Analysis
  • Navigating Ethical Challenges: A Case Study on Wells Fargo's Sales Culture
  • Unlocking the Power of Employee Motivation in Effective Management
  • Impact of effective leadership strategies on the business performance of UK retail firms- A Case of Tesco
  • Analysing the operational aspects for a new resort
  • Analysing leadership approaches within a project environment
  • Safeguarding Children's Welfare: Legal Protection Against Abuse
  • Navigating Compassion and Law Enforcement: A Case Study Analysis
  • Unveiling the Shadows: Understanding Drug Addiction in Australia
  • Enhancing Patient Safety Through Medication Administration: A Case Study Analysis
  • Climate Change's Impact on Corporate Social Responsibility: A Case Study of Viva Energies Australia
  • Analyzing narrative techniques in a given reading
  • Planning a web-based reporting system for Rimu Art
  • The effects of technological implementations on sustainable development in the UK construction industry
  • Child protection policy that has emphasis on an adoption approach versus child protection policy that has emphasis on use of intensive family support programs
  • Reflective essay on understanding human development across the lifespan
  • Evaluating different management support systems relating to information systems
  • Evaluating gender discrimination in early childhood education in Australia
  • Improving Early Education Standards for children and families
  • Solution to economics questions based on international finance
  • Formulating a sustainable leadership proposal for Barclays Bank

Question Bank

Looking for Your Assignment?

case study southwest airlines

FREE PARAPHRASING TOOL

case study southwest airlines

FREE PLAGIARISM CHECKER

case study southwest airlines

FREE ESSAY TYPER TOOL

Other assignment services.

  • SCM Assignment Help
  • HRM Assignment Help
  • Dissertation Assignment Help
  • Marketing Analysis Assignment Help
  • Corporate Finance Assignment Help

FREE WORD COUNT AND PAGE CALCULATOR

FREE WORD COUNT AND PAGE CALCULATOR

case study southwest airlines

QUESTION BANK

case study southwest airlines

ESCALATION EMAIL

To get answer.

Please Fill the following Details

Thank you !

We have sent you an email with the required document.

Academia.edu no longer supports Internet Explorer.

To browse Academia.edu and the wider internet faster and more securely, please take a few seconds to  upgrade your browser .

Enter the email address you signed up with and we'll email you a reset link.

  • We're Hiring!
  • Help Center

paper cover thumbnail

CASE STUDY ON SOUTHWEST AIRLINE

Profile image of Muhammad Adeel Qadri

Related Papers

Transportation Research Part E-logistics and Transportation Review

Rodrigo Britto

case study southwest airlines

Kerim Goztepe

Selection of appropriate supplier(s) for success of an organization is particularly a valuable necessity , hence apart from the common criteria such as logistics, service and quality, this paper discusses most of the key decision variables which can play a critical role in case of the supplier selection. In this study, analytic network process (ANP) method is used because it considers the relationship between the criteria themselves; criteria and alternatives. Pair wise comparison between the model elements is necessary in ANP method. However, the decision makers make their judgments in fuzzy environment and prefer to use linguistic variables with number interval instead of crisp number for stating judgments. For these reasons, a fuzzy set is required to give an answer for the uncertainty. In fuzzy ANP model, experts have been making fuzzy pair wise comparisons; however, the importance of compared criteria or their priority may be different. In such a case, the judgment of expert regarding pair wise comparisons of elements can change. The new evaluations of experts should be obtained. Getting the evaluation of experts in each case may delay decision making. To overcome this difficulty, data related to fuzzy pair wise comparisons that reflect expert opinion is used in different artificial neural network (ANN) models for training. There is no need to consult the experts in ANN comparison matrix values due to learning feature of ANN. Another superiority of ANN model is that the weights search by pair wise comparison matrix can be found by ANN without a need for fuzzy extent analysis method. This research results thus indicate that the supplier selection process appears to be the most significant variable in deciding the success of the supply chain. Therefore, supplier selection should be done according to many different qualitative and quantitative criteria.

International Journal of Business Performance and Supply Chain Modelling

Darshan Kumar

Mark Ferguson

Seongman Moon

Transportation Research Part C: Emerging Technologies

Lance Sherry

Navid Haqiqat

This paper focuses on evaluating airline service quality from the perspective of passengers' view. Until now a lot of researches has been performed in airline service quality evaluation in the world but a little research has been conducted in Iran, yet. In this study, a framework for measuring airline service quality in Iran is proposed. After reviewing airline service quality criteria, SSQAI model was selected because of its comprehensiveness in covering airline service quality dimensions. SSQAI questionnaire items were redesigned to adopt with Iranian airlines requirements and environmental circumstances in the Iran's economic and cultural context. This study includes fuzzy decision-making theory, considering the possible fuzzy subjective judgment of the evaluators during airline service quality evaluation. Fuzzy TOPSIS have been applied for ranking airlines service quality performances. Three major Iranian airlines which have the most passenger transfer volumes in domestic and foreign flights were chosen for evaluation in this research. Results demonstrated Mahan airline has got the best service quality performance rank in gaining passengers' satisfaction with delivery of high-quality services to its passengers, among the three major Iranian airlines. IranAir and Aseman airlines placed in the second and third rank, respectively, according to passenger's evaluation. Statistical analysis has been used in analyzing passenger responses. Due to the abnormality of data, Non-parametric tests were applied. To demonstrate airline ranks in every criterion separately, Friedman test was performed. Variance analysis and Tukey test were applied to study the influence of increasing in age and educational level of passengers on degree of their satisfaction from airline's service quality. Results showed that age has no significant relation to passenger satisfaction of airlines, however, increasing in educational level demonstrated a negative impact on passengers' satisfaction with airline's service quality.

Konstantinos Kalligiannis

James Higham , Francis Markham

Aviation emissions are an important contributor to global climatic change. As growth in travel demand continues to outstrip improvements in the fuel efficiency of air travel, the aviation contribution to climate change is likely to grow substantially. Consequently, measures that effectively reduce travel demand are required if atmospheric carbon concentrations are to be limited. The efficacy of the Australian Clean Energy Future policy which placed a $23.00AUD (FY 2012) to $24.15 AUD (FY 2013) per tonne levy on carbon-dioxide equivalent emissions from July 2012 to June 2014 is tested. Specifically, time-series regression is used to estimate the effect of this carbon price policy on the level of domestic passenger kilometres flown in Australia, while adjusting for costs of production (i.e. fuel and labour costs), economic activity (i.e. gross domestic product), competitive effects (i.e. airline capacity), and exogenous shocks. There was no evidence that the carbon price reduced the level of domestic aviation in Australia. Carbon pricing measures may have to be levied at a greater rate to affect behavioural change, particularly given the limited potential for future aviation efficiency gains.

RELATED PAPERS

George Rajna

Doni Romadhoni

Social Inclusion

Sandy O'Sullivan

Makassar Dental Journal

Alamsyah Piliang

International Clinical Psychopharmacology

Rejean Fontaine

Biochimica et Biophysica Acta (BBA) - Molecular Cell Research

SSRN Electronic Journal

Bulent Aybar

Journal of Cerebral Blood Flow & Metabolism

Gisela ortiz gaspar

American Heart Journal

Alexandra Lansky

Laura La Rotonda

Journal of Clinical Physiotherapy Research

Javad Sarrafzadeh

Agents and actions

Patrice Ferriola

mireia tintore

Physical Review E

Stanislav Denisov

International Journal For Multidisciplinary Research

Shweta Phadke

Autobiografia

aga ilwicka

Chemistry & Biology

Robert G K Donald

Laurențiu Budău

RELATED TOPICS

  •   We're Hiring!
  •   Help Center
  • Find new research papers in:
  • Health Sciences
  • Earth Sciences
  • Cognitive Science
  • Mathematics
  • Computer Science
  • Academia ©2024

Here’s Why Thousands Of Flight Attendants Are Threatening To Strike

  • Share to Facebook
  • Share to Twitter
  • Share to Linkedin

Alaska Airlines flight attendants voted in favor of authorizing a strike Tuesday, following similar votes by workers at American Airlines , Air Wisconsin and Southwest in recent months, and on the same day thousands of flight attendants coordinated rallies for new contracts and higher pay at 30 airports—though launching a strike could be legally complicated.

Flight attendants walk a picket line at Los Angeles International Airport on Tuesday, Feb. 13, 2024. ... [+] Flight attendants for major U.S. airlines are holding rallies at airports around the country to push for higher pay. Tuesday's protests are not, however, a strike. Federal law makes it difficult for airline unions to go on strike. (AP Photo/Richard Vogel)

With a participation rate of roughly 93%, Alaska flight attendants represented by the Association of Flight Attendants (AFA) voted 99.48% in favor of authorizing a strike, amid the flight attendants’ negotiations with Alaska Airlines for a new contract.

Flight attendants at Alaska Airlines say they are pushing for higher pay rates and more scheduling flexibility.

The flight attendants also want a change in a common industry policy dictating attendants only get hourly wages for time the plane is in motion—not during deplaning, boarding or other times the plane is grounded—a practice the union says amounts to “free work,” even as some airlines have disputed that narrative.

Flight attendants at several other airlines like American, Delta and Southwest are seeking new contracts , with many citing similar concerns over boarding and deplaning pay—Delta is the only major airline that’s budged on this policy so far, offering employees half pay during boarding starting in 2022.

Thousands of flight attendants across three unions picketed in front of 30 airports in the U.S., U.K. and Guam Tuesday “to push common demands,” according to the AFA, which argued in a press release “new contracts are overdue” as flight attendants have seen unruly behavior from passengers and short staffing in recent years, and as the airline industry returns to profitability post-pandemic.

In a statement to Forbes after the strike vote, Alaska Airlines said it agrees its flight attendants need a new contract, has offered “industry leading top-of-scale pay,” has closed more than 50 tentative agreements “representing dozens of topics where we’ve found common ground” and remains “optimistic in the negotiations process.”

Can Flight Attendants Really Go On Strike?

It’s unlikely that a strike or true work stoppage will actually occur. Federal law requires workers in the airline and railroad industries to go through a complex series of steps to get a legal strike approved. A strike can only occur if federal mediators determine that negotiations are at an impasse. Even if they do, Congress can legislatively mandate a settlement. The federal Mediation Board already rejected American Airlines flight attendants’ attempt to go on strike in November, months after the attendants voted to authorize a strike.

Some airlines have argued they do compensate flight attendants for time boarding, though it’s often through different pay mechanisms than an hourly wage. AFA President Sara Nelson told NPR airlines sometimes promise to pay workers for a minimum number or percentage of hours per day, even if they’re actually in the air for fewer hours. A December statement from Alaska Airlines said that “contrary to union narratives, we do pay flight attendants for boarding time through a pay mechanism that was negotiated with the union in previous contract cycles.” The airline said it was open to “alternative pay structures” as part of negotiations. However, Nelson argued this mechanism no longer reflects the modern challenges of boarding and flying.

100,000. That’s how many flight attendants are in contract negotiations, according to the Association of Flight Attendants.

Key Background

The airline industry has had a rocky four years: The Covid-19 pandemic caused passenger numbers to plummet in 2020, forcing the federal government to offer bailouts to major carriers, and a resurgence of passenger demand in 2022 led to delays and cancellations . Flight attendants’ organizing efforts are likely spurred by recent contracts reached by airline pilots and growing labor movements across multiple industries in recent years, from screenwriters in Hollywood to rideshare drivers . At Alaska Airlines, it’s the first time flight attendants have authorized a strike since 1993, when they used a tactic they call “Create Havoc Around Our System” (CHAOS) . The strategy involves keeping management guessing about the timing and scope of the strike—sometimes disrupting work on a single flight and sometimes across multiple flights or the entire system. The union has threatened a similar tactic this time around.

Further Reading

James Farrell

  • Editorial Standards
  • Reprints & Permissions

The Daily Digest

The Daily Digest

Planning to fly in 2024? America’s best and worst airlines ranked

Posted: January 5, 2024 | Last updated: January 5, 2024

<p>If you are making plans to travel in 2024 then you are going to want to check out this gallery! Click on to discover the best and worst American airlines.</p>

Make sure to read this before planning your next trip

If you are making plans to travel in 2024 then you are going to want to check out this gallery! Click on to discover the best and worst American airlines.

<p><span>The cost of flights has been skyrocketing since the end of the pandemic but that hasn’t really been stopping anyone from booking their next vacation. Yet the price of your ticket isn’t the only thing you should be considering when you travel this year…</span></p>

Which company do you think is the worst ranked?

The cost of flights has been skyrocketing since the end of the pandemic but that hasn’t really been stopping anyone from booking their next vacation. Yet the price of your ticket isn’t the only thing you should be considering when you travel this year…

<p>'Time Out' has listed 10 European cities that are both affordable and full of charm. Let's take a look at this list, which you will see is largely dominated by Eastern European destinations!</p>

Important factors

Which airline isn’t going to lose your luggage or force you to endure hours or even days of delays without compensation or assistance are also important things to think about. 

<p><span>With that in mind, the personal finance website WalletHub decided to rank eleven of the largest American airlines to see which ones came out on top and which ones were left in the dust by their competitors, and the final answers might actually surprise you.</span></p>

A ranking from WalletHub

With that in mind, the personal finance website WalletHub decided to rank eleven of the largest American airlines to see which ones came out on top and which ones were left in the dust by their competitors, and the final answers might actually surprise you.

<p><span>WalletHub looked at fourteen different metrics that included things like price, delays, legroom, canceled flights, mishandled baggage reports, animal incidents, and entertainment options, and gave each of the eleven airlines a score out of 100. </span></p>

Scoring out of 100

WalletHub looked at fourteen different metrics that included things like price, delays, legroom, canceled flights, mishandled baggage reports, animal incidents, and entertainment options, and gave each of the eleven airlines a score out of 100. 

<p>Other important metrics examined included complimentary refreshments. injuries and accidents, Wi-Fi availability, animal-related incidents, fatal injuries, and fleet age. <span>So who was the best and who was the worst? </span></p>

The best and the worst

Other important metrics examined included complimentary refreshments. injuries and accidents, Wi-Fi availability, animal-related incidents, fatal injuries, and fleet age. So who was the best and who was the worst? 

<p><span>Delta came in first with the highest final score in relation to any of its competitors at 66.76. The airline had the lowest number of cancellations, delays, denied boardings, and mishandled baggage reports.</span></p>

Delta came in first with the highest final score in relation to any of its competitors at 66.76. The airline had the lowest number of cancellations, delays, denied boardings, and mishandled baggage reports.

<p><span>Spirit came in a close second to Delta with a final score of 66.57. You wouldn’t think America’s low-cost carrier would fare so well but the budget airline's rock-bottom prices are what propelled it to the number two spot. </span></p>

2. Spirit Airlines

Spirit came in a close second to Delta with a final score of 66.57. You wouldn’t think America’s low-cost carrier would fare so well but the budget airline's rock-bottom prices are what propelled it to the number two spot. 

<p><span>Skyway Airlines is a regional carrier you've probably never heard of but it proved itself to be exceptional with a final score of 63.71, which means if you see them pop up on your next Google Flights search then they might be worth your booking. </span></p>

3. Skyway Airlines

Skyway Airlines is a regional carrier you've probably never heard of but it proved itself to be exceptional with a final score of 63.71, which means if you see them pop up on your next Google Flights search then they might be worth your booking. 

<p><span>United wasn't a leader in any of the fourteen categories but the airline did do an all-around good job at everything, which is how it earned the number four spot with a final score of 62.83. </span></p>

4. United Airlines

United wasn't a leader in any of the fourteen categories but the airline did do an all-around good job at everything, which is how it earned the number four spot with a final score of 62.83. 

<p><span>Alaska proved to be one of America’s most pet-friendly airlines so you might want to consider them the next time you need to fly around the country with your dog. Netting a final score of 59.03, Alaska turned out to be a solid middling choice for anyone looking for a flight.</span></p>

5. Alaska Airlines

Alaska proved to be one of America’s most pet-friendly airlines so you might want to consider them the next time you need to fly around the country with your dog. Netting a final score of 59.03, Alaska turned out to be a solid middling choice for anyone looking for a flight.

<p><span>Hawaiian had a pretty low rate of denied boardings and WalletHub gave the airline the highest score in that metric with a 14.91 out of 15. But that wasn’t enough to push the regional carrier to the top of the list and they earned a very okay final score of 57.14. </span></p>

6. Hawaiian Airlines

Hawaiian had a pretty low rate of denied boardings and WalletHub gave the airline the highest score in that metric with a 14.91 out of 15. But that wasn’t enough to push the regional carrier to the top of the list and they earned a very okay final score of 57.14. 

<p><span>Despite being ranked the best airline for comfort and in-flight experience,  JetBlue was ranked near the bottom of the list because they’re apparently really bad for mishandling luggage and canceling flights. The airline only got a final score of 55.46. </span></p>

Despite being ranked the best airline for comfort and in-flight experience,  JetBlue was ranked near the bottom of the list because they’re apparently really bad for mishandling luggage and canceling flights. The airline only got a final score of 55.46. 

<p><span>Envoy Air, most commonly known for operating American Airlines' American Eagle brand, was ranked the safest of the eleven airlines in the ranking but they performed poorly nearly everywhere else and only achieved a final score of 52.25. </span></p>

8. Envoy Air

Envoy Air, most commonly known for operating American Airlines' American Eagle brand, was ranked the safest of the eleven airlines in the ranking but they performed poorly nearly everywhere else and only achieved a final score of 52.25. 

<p><span>We bet you thought you’d see American high on the list but it turns out the airline is pretty bad no matter which way you look at them. They got a final score of 47.06 but that wasn't enough to make them the worst company to fly with on WalletHub’s ranking. </span></p>

9. American Airlines

We bet you thought you’d see American high on the list but it turns out the airline is pretty bad no matter which way you look at them. They got a final score of 47.06 but that wasn't enough to make them the worst company to fly with on WalletHub’s ranking. 

<p><span>It turns out that America’s second cheapest budget airline is also it's second worst… Frontier only got a final score of 45.13 and performed poorly when it came to delays and cancellations. Still, they were nowhere near as bad as America’s worst airline, Southwest. </span></p>

10. Frontier Airlines

It turns out that America’s second cheapest budget airline is also it's second worst… Frontier only got a final score of 45.13 and performed poorly when it came to delays and cancellations. Still, they were nowhere near as bad as America’s worst airline, Southwest. 

<p><span>That’s right, Southwest came in dead last with an atrocious final score of 23.39 and performed badly in every single category. So next time you’re looking to book, maybe pony up a little extra cash to avoid this seemingly terrible airline! </span></p>

11. Southwest

That’s right, Southwest came in dead last with an atrocious final score of 23.39 and performed badly in every single category. So next time you’re looking to book, maybe pony up a little extra cash to avoid this seemingly terrible airline! 

More for You

Trump Targets Former Staffers for Criticizing Him

Blame Game Ensues in GOP After House Seat Loss: Trump Brands Defeated Candidate a “Very Foolish Woman”

19 Unsolved Mysteries From Around the World

19 Unsolved Mysteries From Around the World

Reggie Miller says Red Auerbach allowed Isiah Thomas to travel with the Celtics:

Reggie Miller says Red Auerbach allowed Isiah Thomas to travel with the Celtics: "That was like me asking Michael Jordan 'Can I ride the bus?'"

Tennessee lawmakers react to group of 'Nazis' marching through downtown Nashville

Tennessee lawmakers react to group of 'Nazis' marching through downtown Nashville

Be Upfront and Honest

Watch Out for These 10 Car Brands With Poor Engine Ratings

The 10 Most Hated Banks in America

The 10 Most Hated Banks in America

Pence on January 6

Mike Pence Urges GOP Voters to Choose a Different Candidate Than Trump in 2024

MSNBC host Katy Tur wonders ‘is this fair’ after New York judge fines Trump, bans him from business in state

MSNBC host Katy Tur wonders ‘is this fair’ after New York judge fines Trump, bans him from business in state

case study southwest airlines

"They didn't like my extracurriculars" - Jason Williams explains why he got dismissed from Florida after just 20 games

The Best Time To Put Out Your Hummingbird Feeders, According To Experts

The Best Time To Put Out Your Hummingbird Feeders, According To Experts

Julian Assange’s moment of truth has arrived – and the stakes are high

Julian Assange’s moment of truth has arrived – and the stakes are high

The new material being used to build homes—and the only part of the US that uses it

The new material being used to build homes—and the only part of America using it

Andrew Hitt, the former chairman of the Republican Party of Wisconsin, spoke with Anderson Cooper of

Wisconsin fake elector tells ‘60 Minutes’ he was afraid of Trump supporters

500 water bottles have been recalled

Popular water bottle recalled due to health issues, with children particularly at risk

Star Trek The Next Generation Unnatural Selection Dr. Pulaski old

Why Star Trek: The Next Generation Was Put On Hold For Years And Years

People sit near paintings of military and political leaders during a protest on Friday in Sana'a, Yemen.

Iran, wary of wider war, urges its proxies to avoid provoking U.S.

Dollar Tree

10 Kitchen Items You Should Always Buy at Dollar Tree To Save Money

Virgin Galactic Reports Itself to the FAA When Mechanism Falls Out of Place

Virgin Galactic Reports Itself to the FAA When Mechanism Falls Out of Place

‘It’s much larger’: Trump’s financial penalty nightmare may not be over, NYT reporter says

‘It’s much larger’: Trump’s financial penalty nightmare may not be over, NYT reporter says

Influential Anti-Trump Republicans Issue Warnings on Jan 6 Anniversary

Liz Cheney Rips into Elise Stefanik’s January 6 Claims

IMAGES

  1. Southwest Airlines: A Case Study

    case study southwest airlines

  2. Southwest Airlines Case Study

    case study southwest airlines

  3. Southwest Airlines

    case study southwest airlines

  4. Southwest Airline case study

    case study southwest airlines

  5. Southwest Airlines Rapid Rewards Case Study: A Success Story

    case study southwest airlines

  6. Southwest Airlines Case Study

    case study southwest airlines

COMMENTS

  1. A unique take on Southwest Airlines Strategy

    The Southwest Airlines case study is a lesson in cultural strategy. An organization built on the fundamentals of customer eccentricity, effective processes, and a dedicated team is meant to achieve success and overcome challenges. This model of exceptional customer service can help a business earn an impeccable reputation in the industry.

  2. 50 Years On: Southwest's Low-Cost, High-Value Success Story

    March 2021 marks fifty years of the Southwest Airlines name being in existence, marking a milestone in what has been seen as a low-cost, high-value success story. ... Overall, the success of Southwest Airlines over the past 50 years should prove to be a case study for other LCCs and FSCs alike to adopt their model more. As income reduces ...

  3. Southwest Airlines Success: A Case Study Analysis

    Southwest Airlines is a somewhat different example of a business model pioneer—and indeed, one may ask if the company is a pioneer at all: neither was Southwest the first to offer intrastate ...

  4. Southwest Airlines (A)

    Southwest Airlines (A) In 1994 both United Airlines and Continental Airlines launched a low-cost airlines-within-an airline to compete with Southwest Airlines. From 1991 until 1993 Southwest had increased its market share of the critical West Coast market from 26 percent to 45 percent. This case considers how Southwest had developed a ...

  5. What Your Business Can Learn From Southwest Airlines

    Southwest Airlines: A Case Study in Great Customer Service. Updated Jan 22, 2024. Table of Contents. Sean Peek. Contributing Writer at business.com. Southwest Airlines serves over 126 million passengers each year, provides service to 121 airports across 11 countries and has maintained its nearly 72,000-employee roster with no involuntary ...

  6. (PDF) Solved Case Study of Southwest Airlines from "STRATEGIC

    October 25, 2013 A Case Study on Southwest Airlines 4 Group 10, Section A, 1st Semester, Bachelor of Business Management (2013-2016) Distinctive Capabilities: There are many distinctive capabilities of Southwest Airlines that makes it a different and the most successful carrier: -They operate 1 type of aircraft Boeing 737, which lowers ...

  7. PDF A Crisis in The Air: Analyzing Public Relations at Southwest Airlines

    On April, 17, 2018, Southwest Airlines flight 1380 experienced an uncontained engine failure after departing from New York -LaGuardia Airport on a flight to Dallas Love Field. This case study probes into the public relations efforts that Southwest Airlines pursued to manage the crisis after the aircraft was substantially damaged. The authors

  8. Southwest Airlines' Competitive Advantage

    Southwest Airlines was established in 1967 and is a major airline based in the U.S. known for its low prices and friendly service. The company has become one of the largest airlines in the world ...

  9. Southwest Airlines: In a Different World

    Abstract. This is the fourth in a 35-year series of HBS cases on an organization that has changed the rules of the game globally for an entire industry by offering both differentiated and low-price service. The focus of the case is on whether Southwest Airlines should buy gates and slots to initiate service to New York's LaGuardia airport ...

  10. Case Study: How Southwest Airlines used art and science to ...

    01 Jul 2021 Case study. Case Study: How Southwest Airlines used art and science to increase demand forecast accuracy English English This content is only available in this language. Download case study. Southwest Airlines is benefitting from increased accuracy when predicting airline demand, with the help of machine learning and customer choice ...

  11. Case Study: Profitability Takes Flight, Southwest Airlines Unique

    June 21, 2023 by Admin. Southwest Airlines is a renowned American low-cost airline established in 1967 and has since become one of the industry's most successful and profitable carriers. With its headquarters in Dallas, Texas, Southwest operates an extensive domestic network, serving more than 100 destinations across the United States.

  12. (PDF) Southwest Airlines: Managing Corporate Resources (Strategic

    Methodology: For this case study, the authors collected and analyzed quantitative and qualitative data from secondary sources to examine the changes in Southwest Airlines' internal and external ...

  13. Southwest Airlines Case Study

    Southwest Airlines was founded in 1967 and has become one of the world's largest low-cost airlines, with 54,000 employees managing flights to 101 destinations in 11 countries for 130 million passengers per year. Benefits of AWS. Improved visibility into its security posture;

  14. Southwest Airlines

    Southwest Airlines is famous for its employee-first culture, dedication to customer service, and sense of warmth, friendliness, and fun. And when it comes to meeting the urgent demands of technology development in a highly complex logistical environment, a thriving culture is just the start to meeting the challenge. ... Suggested Case Study ...

  15. Brand Case Study [Southwest Airlines]

    From a small interstate airline operating out of Dallas Texas where the brand was born back in 1967, Southwest now services over 100 destinations across North America and The Caribbean. A story of hot pants, whisky, peanuts, caring and some light-hearted humour, this article breaks down the Southwest Airlines Brand in this case study.

  16. Case Study Southwest Airlines

    After almost half a century of service, Dallas-based Southwest Airlines continues to differentiate itself from other air carriers with exemplary customer service. The airline operates more than 3,900 flights per day during peak travel season across a network of 98 destinations in the United States and seven additional countries, and its 53,000 ...

  17. Case Study: Southwest Airlines Video

    Southwest Airlines is the world's largest low-cost carrier, operating non-stop flights to more than 120 destinations across over 10 countries. With PayPal, Southwest customers can purchase airline tickets at southwest.com seamlessly and securely. PayPal and Southwest continue to expand their relationship to provide efficiency and an even better customer experience.

  18. Southwest Airlines : Case Study

    south east. Southwest Airlines Way. Southwest Airlines. Case Study Of Southwest Airlines. Southwest Brand Audit Ppt 12/14/11. Case study presentation on marketing management. Southwest airlines. Southwest History and GrowthCorporate Level Strategy.docx. Performance comparison of southwest airlines with us aviation industry.

  19. Solved Case Studyof Southwest Airlines

    a case study on southwest airlines. from "strategic management: an integrated approach" 9th edition by hill & jones (cengage learning) (text book page: 105) submitted by: group 10. imad shahid khan (roll 27) | siddharth bhagat (roll 53) | soumya suman (roll 44) | ansai sony (roll 7) section a, 1st semester, bachelor of business management ...

  20. Southwest Airlines Commits $100K to Ford International ...

    Southwest Airlines has committed $100,000 to the Ford Launchpad for Innovative Technologies and Entrepreneurship, or FLITE, to further fuel innovation in the aviation industry.

  21. Case Study of Southwest Airlines

    The main problem facing Southwest airline is mismanagement, economic and rival competition in the airline industry. The case study reflects back on the formation of Southwest Company in late 1966 by Rollin king who was then a San Antonio entrepreneur. The company grew after its incorporation with Lamar Muse in 1967 as its first CEO.

  22. Southwest Airlines: Risking Going From One Extreme To The Other

    Southwest Airlines had seen a significant decline in its EPS outlook throughout the latter half of 2023. The consensus EPS target for 2024 dropped all the way to about $1.7 but is now back up in ...

  23. Case Study

    Case Study solution southwest airlines case study southwest airlines southwest airlines has been one of most renowned and demanding national airlines in the

  24. Southwest Airlines Case Study: A Comprehensive Analysis Of The Aviation

    The southwest airlines case study is still considered to be the point of reference in the aviation business since it throws light on the successful approaches to be taken to achieve a higher level of success in the business. The article on southwest airlines case study would provide you with a comprehensive analysis of the aviation industry along with the detailed scrutiny of its external ...

  25. (PDF) CASE STUDY ON SOUTHWEST AIRLINE

    PERFORMANCE OF AN INTERNAL AUDIT (RESULT) An assessment of the internal strengths and weaknesses - based on the case study (Southwest Airlines, 2002) and additional references (by 2009) is as follows: Strengths 1. Southwest has successfully adopted a cost leadership strategy 2.

  26. Here's Why Thousands Of Flight Attendants Are Threatening To ...

    Alaska Airlines flight attendants voted in favor of authorizing a strike Tuesday, following similar votes by workers at American Airlines, Air Wisconsin and Southwest in recent months, and on the ...

  27. Planning to fly in 2024? America's best and worst airlines ranked

    Envoy Air, most commonly known for operating American Airlines' American Eagle brand, was ranked the safest of the eleven airlines in the ranking but they performed poorly nearly everywhere else ...