Aakansha Sinha (UH190)

Augustin Joseph (UH190)

Anuprit (UH190)
Chandramouli Kundu (UH19018)
Nilanshu Bohidar (UH190)
Ravi Teja (UH190)
Yasmin Kukul (UH190)

Reference:
https://www.google.com/search?q=southwest+airlines+operation+model&safe=strict&rlz=1C1CHBF_enIN844IN844&source=lnms&tbm=isch&sa=X&ved=0ahUKEwjGt46kxo7jAhXKP48KHbPIC98Q_AUIESg
C&biw=1536&bih=731#imgdii=RgHQ9nZ450wGwM:&imgrc=Ww7Jnb-BUnt-aM:
Overview
■ Name of Organization: Southwest Airlines
■ Industry: Airlines
■ Initiative: Discount airlines industry
■ Headquarters: Dallas, Texas, USA
■ Stakeholders:
– Herb Kelleher
– Rolling King
– Jim Parker
– Collen Barrett
– Garry Kelly
– FAA
 History

■ Story of a Lawyer (Herb Kelleher) and his client (Rollin King)

■ Pop culture: Legendary beginning in a San Antonio restaurant on a
cocktail napkin
■ Air Southwest Co. (1967) Southwest Airlines Co. (1971)
■ Initial investment: $10000
■ Connecting Texas triangle with low cost air travel services
■ Legal obstructions and lawsuits from competitors

Reference: https://www.google.com/search?q=southwest+airlines+history&safe=strict&rlz=1C1CHBF_enIN844IN844&source=lnms&tbm=isch&sa=X&ved=0ahUKEwjfpfGhzI7jAhXLvo8KHWi-DcwQ_AUIEigD&biw=1536&bih=682&dpr=1.25#imgdii=yXiOIpiFgtdcCM:&imgrc=WddKpDEwLDYPdM:
Southwest Business Model
Point-to-point
model

Employee
Creative friendly
Spirit culture
Innovative Business
Model & Strategic
Human Resources

Bold & out Result: 35 years of Quality

of the box profitability, most productive Customer
workforce, 34000 employees, Service
initiatives
64 cities, $11Bn
 Point-to-Point
■ Low establishment costs
■ Designed to maximize traffic on a
route
■ Smaller flights and less congestion
■ Reduction of redundant services
■ Single variety of aircraft
vs Hub-and-Spoke
■ High level of investment
■ Designed to maximize traffic
through hubs
■ High volumes of connecting flights
resulting in congestion.
■ Inefficient use of equipment.
■ Multiple varieties of aircrafts
Crisis
 Took only his business
very seriously

Preparation for every

Bias for quick action scenario

STYLE, STRATEGY
&
MANAGEMENT
POLICIES

Ability to maintain Witty speeches & quick connect

differences & trade offs with audiences

Listening to customers
& employees
CULTURE AT SOUTHWEST

■ Tribe like loyalty b/w employees and management : Espirit de corps

■ Business as an adventure
■ Constant personal interaction with employees
■ Sense of boldness and liveliness from the beginning
■ Utmost customer engagement
■ Basic Mottos: Warrior Spirit, A Servant’s Heart, LUV @ Southwest
HR POLICIES

■ Recruitment driven by attitude

■ Preference to culturally fit candidates
■ Training oriented towards customer service
■ Emphasis on team work and team building
■ HR Practices designed to enhance coordination and control
 American vs Southwest

■ Functional Accountability ■ Cross-Functional Accountability

■ Focus on Measurement
■ Minimal amount of pro-activeness
■ Team work not promoted
■ Highly centralized span of control
■ Focus on Learning
■ Proactive attitude
■ Preference to team fit candidates
■ Preference to decentralization span
of control
Labor Relationships
■ Herb’s unique way of Labor Relations
■ Labor union aligned to company values and objectives
■ New outlook in Labor union.
■ Nine labor unions synchronized
■ Unique grievance handling process
■ A special culture of Employee Relationship
Challenges
■ Impact of terrorism on business processes
■ No frills, itineraries in their flights in comparison to competitors
■ Greedy workers
■ Failure in negotiation of wages leading to rise in overall cost
■ Resignation of James Parker
■ Better performance of rival airlines companies
■ Gradual decrease in growth rate
Restructuring

■ Garry Kelly promoted to CEO from CFO

■ Fuel-hedging strategy maintained balance
■ Introduction of new accounting methods and Information management systems
■ No price hike when compared to rival companies