SOUTHWEST

AIRLINES

Southwest Airlines (A)

Case Study
GROUP 1 :
Ayushman Pandey - 230102022
Rishabh Goel - 230102065
Rohit Pareek - 230102066
Aishwarya Rai - 230101012
Raghav Loona - 230101262
Arpit Tamboli - 230101041
Muskan Bhalla - 230101260
SOUTHWEST
AIRLINES Introduction
• 1967, Born in Texas, challenging legacy airlines with low fares
and a single Boeing 737.
• Unconventional, fun-loving approach boosts employee morale
and customer loyalty.
• Single aircraft type reduces costs, streamlines operations.
• Open seating encourages flexibility, profit-sharing rewards
employee performance.
• Strong employee-employer bond translates to exceptional
customer service.
• Consider adding a tagline at the top, like "The case that proves
happy employees fuel success."
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Home Flight
AIRLINES

Vision
To be the world's most loved, most efficient,
and most profitable airline.

Mission
To connect People to what's important in their
lives through friendly, reliable, and low-cost air
travel.

Core Values
• Warrior Spirit
• Servant's Heart
• Fun-LUVing Attitude
•
•
Safety
Reliability Company Overview
• Friendliness
• Service
• Low Costs
 SOUTHWEST
AIRLINES

• Faster than average gate turnarounds to yield higher utilization

rates.
• One class of seating.
• No meals or movies on flight.
• One type of airplane – Boeing 737.
• Point-to-Point flight routes.
• High employee productivity.
• A very successful fuel hedging program (long-term contract with
oiL companies to buy fuel equivalent to $51 per barrel through
2009 that reduced a major fraction of its operating expense).
• Serves relatively less-congested airports to achieve high asset
utilization and reliable on-time performance (however later it had
BUSINESS spread its operations to major airports as well).

MODEL
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AIRLINES
COMPETITIVE ANALYSIS
PARAMETERS Southwest UNITED/CONTINENTAL

One type (Boeing 737)

Variety of fleets
AIRPLANE TYPE Low training costs, maintenance
Higher cost of operations
costs and inventory costs

Hub and Spoke

Point-to-Point
Is dependent upon hub connections,
Eliminates the need for connection,
TRANSIT SYSTEM leading to increased travel time
reduces travel time and less prone
while being vulnerable to delays.
to delay, with minimum employees
Also requires more employees

Ticketless Operation Traditional Operation

No seat assignment reduces costs Organized system of seat
METHOD OF OPERATION
and back-office accounting assignment reduces chaos yet
functions. subjects to added costs.

TYPE OF ORGANISATION & Hierarchical Organization &

Horizontal Organization & High productivity
EMPLOYEE PRODUCTIVITY Comparitively low productivity
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AIRLINES
SWOT
STRENGTHS
ANALYSIS WEAKNESSES
• Lack of premium options and services

S W
• Consistent Low cost
• High dependence on Boeing 737
• Business model different from all
• Less focused on international markets
• Strong leadership
• Vulnerability to external factors
• Consistent profits
• Positive brand reputation

OPPORTUNITIES THREATS
• Expansion in international
markets
• Take leverage from
O T • Economic downturns
• Fluctuating fuel prices
• Intense competition in the
technological advancement airline industry
• Develop value-added services
• Strategic Partnerships and
Alliances
SOUTHWEST
AIRLINES Mastering Efficiency and Delighting Customers :
Southwest's Winning Formula
I. Low-Cost Structure

• Standardized Fleet: Streamlined maintenance, training, and inventory for a single aircraft type (Boeing 737).
• Minimal Amenities: Eliminating inflight meals and entertainment reduces costs and expedites boarding/disembarking.
• Fuel Hedging: Strategic fuel contracts provide cost stability.
• Motivated Workforce: Profit-sharing incentivizes quick turnaround times and efficient operations.

II. Customer Satisfaction

• On-Time Performance: Focus on minimizing delays and cancellations.

• Friendly Employee Culture: Welcoming and engaged personnel cultivate positive experiences.
• No Frills, No Hassle: Simplified ticket options and a transparent fee structure foster trust.

III. Operational Efficiency

• Point-to-Point System: Direct flights bypass hub-and-spoke congestion, saving time and resources.
• Lean Staffing: Lower employee count translates to reduced labor costs and faster turnaround times.
• Non-Unionized Pilots: Flexibility in scheduling and work rules contributes to operational efficiency.

IV. Financial Performance

• Profitable Operations: Consistent profitability enables growth and investment.

• Strong Customer Loyalty: High retention rates drive sustainable revenue streams.
• Market Leader: Southwest commands a significant market share in the U.S. airline industry.
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AIRLINES

THANK YOU
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