...SOUTHWEST AIRLINES Situation Analysis: Southwest Airlines was cofounded in June 1971 by chairman Herb Kelleher. Southwest started out with three planes and flew into and out-of three major cities in Texas: Houston, Dallas, and San Antonio(Coulter). Their mission was to offer passengers low rate air fare, convenient travel times, and a hassle free experience. Southwest wanted to be able to get its passengers to and from their destinations as quickly and as fun as possible. Southwest has accomplished more and been more successful than anyone would have ever imagined possible. It has grown from just three Boeing 737 aircraft’s to more than 530 737’s. It has set an airline-industry record of being profitable for 36 consecutive years, it continues to be the leader of customer satisfaction with the fewest customer complaints, and has been named one of the most admired companies in Fortune magazine for its 13th consecutive year. Southwest also has its fair share of competitors that are trying to figure out exactly how they remain so successful. Their closest competitors are JetBlue and AirTran which are both a lot like Southwest in the sense they are both strong, innovative, and low-cost. The difference is their competitors have not been able to lower their costs in the way that Southwest has. One of the reasons Southwest has been and remains so successful is its core competencies. They have figured out how to keep their cost low and remain profitable. Southwest airlines...
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...ANALISIS PEMECAHAN MASALAH Dapat terlihat bahwa dalam menghadapi persaingan industri penerbangan yang semakin kompetitif, SWA harus melakukan perubahan strategi di semua lini. Penulis menyimpulkan perubahan strategi yang dilakukan SWA terbagi 3, yaitu operasi, sumber daya manusia dan marketing. Pada akhirnya, pilihan-pilihan stategi inilah yang menentukan SWA sebagai maskapai penerbangan jarak pendek tersukses sepanjang 30 tahun. Operation Strategy * Pemilihan airport kelas menengah dimana penerbangan dilakukan dengan sistem point-to-point dan hanya memiliki satu jenis pesawat Pilihan SWA untuk mengambil market baru dengan melayani penerbangan jarak pendek merupakan keputusan yang tepat, dimana maskapai lainnya bermain dengan sistem hub. Selain itu, SWA juga bermain di airport kelas menengah sehingga lalu lintas penerbangan tidak terlalu padat. Dengan sistem yang lebih sederhana (tidak perlu ada koordinasi dan sistem reservasi yang rumit dengan hub) serta turunnya tingkat keterlambatan penerbangan tentu akan memberikan kepuasan bagi penumpang. Hal ini dapat terlihat dari tabel 1.1 dimana On-time performance SWA berada di atas rata-rata OTP industri, sedangkan tingkat komplain penumpang SWA paling kecil dibanding kompetitornya. Tabel 1.1 Industry Performance tahun 2000 Hal penting lainnya yang menentukan hasil SWA adalah strategi hanya menggunakan satu tipe pesawat, Boeing 737 ssehingga menyederhanakan penjadwalan, maintainance, operasional penerbangan, dan training...
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...Southwest Airlines COM/530 Communications for Accountants March 24, 2014 Abstract Southwest Airlines is the most respected airline in the United States for their philosophy, mission, vision, and values. More than 38 years ago Rollin King and Herb Kelleher started in 1971 as a small 3 airplane carries operating with in Texas. Southwest has dedicated themselves with providing the highest quality of customer service, provides safe reliable air transportation service at a cost effective pricing. “Southwest Airlines is the nation's largest carrier in terms of originating domestic passengers boarded and has acquired AirTran Airways, now a wholly owned subsidiary of Southwest Airlines Co. Southwest serves 73 cities in 38 states and remains one of the most honored airlines in the world known for its commitment to the triple bottom line of Performance, People, and Planet.” (PR Newswire, 2012) SOUTHWEST AIRLINES This paper will discuss the culture of Southwest Airlines philosophy, mission, vision and value statements. The mission of Southwest Airlines is its ongoing dedication to provide the highest quality level of customer service. “Air Transports World’s selection for Airline of the Year for 1991 is Southwest Airlines of Dallas. Created in 1967 by Herbert D. Kelleher and Rollin King, the airline started up in 1971 as a small, 3-airplane carrier operating entirely with Texas. Southwest has dedicated itself to providing safe, highly reliable and frequent air transportation...
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...Introduction: Southwest Airlines has carried more customers than any other U.S. airline for combined domestic and international passengers. Southwest Airlines is one of the world’s most profitable airlines, posting a profit for the 36th consecutive year in January 2009. Southwest has built a successful business on an unusual model: flying multiple short, quick trips into the secondary (more efficient and less costly) airports of major cities, using primarily only one aircraft type, the Boeing 737. Brief History Suppliers, Customers & Rivals: Customers include both residential and commercial sectors. There is no bargaining power for customers, as there is no threat of backward integration; it is unlikely that customers of Southwest Airlines are going to build their own airplanes and fly themselves. Rivalry among competitors sets the price-Southwest Airlines is a discount airliner. Rivalry is increasing, as the market decreases, and competitors downsize, the competitors become more or less equal in size and capacity. This means that as economic conditions worsen, competitors downsize and then compete for the same remaining market. Few of their main competitors are Continental Airlines and American Airlines. Substitute products include the train (Amtrak) and bus (Greyhound) which cover long distances. While these alternates cannot offer the speed of travel, most of Southwest Airlines' customers are attracted to the low price. *Key Success *Strategies of SWA: Organization...
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...Southwest Airlines Julie Cortez-Knapp Management 103 Week 1/May 25, 2013 Instructor Holly Andrews Southwest Airlines The corporate culture of Southwest Airlines has changed over the years. From a culture of hot pants wearing flight attendants; who were liable for any telecom contest with passengers. Emerging to shared goals, shared knowledge and mutual respect for the national company. In order to relieve workers from the high stress environment; they offer pajama day and rocking chairs for meetings. To prevent layoffs during low passenger flight attendance, Southwest employees were willing to take pay cuts. They increased their turn around gate time to get flights out sooner, from one hour to twenty minutes. They also encourage feedback from employees to improve business. Southwest wants their employees to feel like a team, to have fun/be goofy, to be efficient and have corporate loyalty by loving the corporate culture. Southwest treats their customers like kings and queens and their employees even better. (http://managers.emeraldinsight.com/quality/articles/pdf/southwest.pdf) The Current CEO of Southwest airlines is Mr. Gary Kelley. Mr. Kelley could ride first class and be snooty, like most CEO’s, But he likes to get the perspective of the passengers. He is a laid back people person who rides in the back of the cramped plane with the passengers. He likes to get a feel of the company, just...
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...Case: _______Southwest Airlines 2002___________ Name____Kacey Kurtz__________________________ Southwest Airlines is currently competing in the airline industry. The company’s currency strategy is to carefully advertise its image so that consumers can clearly differentiate Southwest Airlines from other airlines. Southwest Airlines does this by being the only low fare, high frequency, short-haul, and point-to-point carrier in America. Southwest Airlines low fares creates brand equity, because consumers want low fares, and Southwest Airlines is one of the only major airlines that offers this attribute to consumers. Southwest Airlines was also the first airline to offer the frequent flyer program where flyers get credit for the number of trips taken and not the number of miles flown. Since Southwest offers low fares and short travel customers may see that flying is a better alternative than traveling in a car. Some outside conditions that affected Southwest Airlines was deregulation which made the airline industry much more competitive. Everything dealing with air travel is regulated by the government now. Airlines operate in a highly competitive environment where fixed costs are very high and this made it one of the toughest industries to compete in without a lot of airlines going bankrupt. Fuel cost were outrageous that were out of airlines control. Airlines had to fund a lot more towards security since the 911 crisis to keep passengers protected and they...
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...Southwest Airlines in 1966 started off as a small commuter air service owned by an entrepreneur named Rollin King. After over hearing business men complain about there routine drive between San Antonio, Dallas, and Houston Texas. After overhearing these complaints in 1967 King filed papers to incorporate the new airline and submitted an application to the Texas Aeronautics Commission for the new company to begin serving Dallas, Houston and San Antonio. After several years of legal problems from rival airlines by 1971 Lamar Muse was bought in as the CEO of the small commuter air service to get operations underway. Muse was a self confident veteran of the airline business that had the skill needed to send the small service in the right direction. In a short time Muse raised $7 million in new capital which was used to purchase planes and equipment. Below I will discuss the corporate culture at Southwest Airlines and how it leverages its culture to achieve a competitive advantage, evaluate the company’s financial performance by calculating and interpreting the profitability ratios. Describe the characteristics of company’s culture and how you think it affects company performance. Given the strategic decisions in the case, I will recommend actions that management should take to sustain/strengthen the culture (or implement a change), based on the situation given. Given the strategic decisions in the case, I will also identify three leadership actions that the company would need to...
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..... The Mission of Southwest Airlines The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual “Our people are our single greatest strength and most enduring longterm competitive advantage.” Gary Kelly, CEO Southwest Airlines Time flies when you’re having fun! More than 38 years ago, Rollin King and Herb Kelleher got together and decided to start a different kind of airline. They began with one simple notion: If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline. And you know what? They were right. What began as a small Texas airline has grown to become one of the largest airlines in America. Today, Southwest Airlines flies over 100 million passengers a year to 66 great cities all across the country, and we do it more than 3,200 times a day. To illustrate our steadfast focus on a triple bottom line—our Performance, our People, and our Planet—we have highlighted these three elements of sustainability in a new format, our first annual One Report. This comprehensive document combines a report on our 2009 financial performance and updated content from our 2008 Southwest Cares report—our corporate responsibility and environmental report—while elevating our triple bottom line through adherence to the Global Reporting Initiative...
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...Skybus Airlines From Wikipedia, the free encyclopedia Jump to: navigation, search Not to be confused with other uses of the name "Skybus". Skybus Airlines | | IATA SX | ICAO SKB | Callsign SKYBUS | | Founded | 2004 | Commenced operations | May 22, 2007 | Ceased operations | April 5, 2008 | Hubs | Port Columbus International Airport | Secondary hubs | Piedmont Triad International Airport | Fleet size | 12 (63 firm orders at time of shutdown) | Destinations | 17 | Company slogan | Only birds fly cheaper | Headquarters | Columbus, Ohio | Key people | John Weikle (Founder) Mike Hodge (CEO & CFO) Kenneth L. Gile (President & COO) Charlie Clifton (Board of Managers) | Website | skybus.com | Skybus Airlines Inc. was a privately held airline based in Columbus, Ohio, United States.[1] It operated as an ultra low-cost carrier modeled after the European airline Ryanair, and aimed to be the least expensive airline in the United States. The business model was heavily reliant on flying routes where other airlines did not have direct flights, as Ryanair did in Europe, thus keeping competition to a minimum, and on flying into secondary airports, rather than heavily trafficked ones. The airline also sold advertising space on the interior and exterior of its aircraft, as well as selling merchandise on board. Skybus applied for operating approval on January 1, 2005,[2] received approval to operate on March 15, 2006,[3] and FAA certification...
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...Bargaining @ Magic Carpet Airlines: A Union's Perspective Back to the Bargaining Table Davida Jackson, Sandy Saburn, Renata Sims Dixie Lee - National Bargaining Representative (NBR) Ruth Boaz – LFA MEC president at Magic Carpet Air Peggy Hardy – LFA union president Marie Phillips – LFA union president Jody Rogers – LFA union president League of Flight Attendants (LFA) Negotiating Team Bill Orleans – director of labor relations Ross Irving – director of human resources Kristine Lamb – director of in-flight services Christian Andrew – executive vice president Willie Sanders – senior vice president of operations Tom Windham – chief executive officer (CEO) and president Company Negotiating Team Magic Carpet Airlines (MCA) -1961 History of Merger 1. Keeping union members informed of negotiation progress. 2. Getting union members involved. 3. Convincing the company that the union’s demands were serious. 4. Setting an issue only with the unanimous consent of the negotiating committee. Strategies of the Union The merger of the two airlines created a small “national” airline (define as a carrier with sales between $100 million & $1 billion) with sales of $140,265,000. River City Airlines (RCA) - 1969 January 1987, Magic Carpet Air purchased River City Airlines and merged two operations. In May 1988, Magic Carpet Air entered into a marketing agreement with a major national carrier and became a “feeder”airline for that carrier. Prior...
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...delayed flights for both companies The percentage of all Alaska Airlines flights delayed is around 13,27%. The calculation is as follows: 501/3775 = 0,1327 (around 13,27%) The percentage of all America West Airlines is around 10,89%. The calculation is as follows: 787/7225 = 0,1089 (around 10,89%) Overall, America West Airlines does best because the percentage of flights delayed is lower than Alaska Airlines. b. The percentage of delayed flights on each airport for both airline companies are as follows: Alaska Airlines America West On Delayed Total Percentage of delayed flights On Delayed Total Percentage of delayed flights Los Angeles 497 62 559 11,09% 694 117 811 14,43% Phoenix 221 12 233 5,15% 4840 415 5255 7,90% San Diego 212 20 232 8,62% 383 65 448 14,51% San Francisco 503 102 605 16,86% 320 129 449 28,73% Seattle 1841 305 2146 14,21% 201 61 262 23,28% Total 3274 501 3775 13,27% 6438 787 7225 10,89% From the table, we can say that Alaska Airlines does best on all the 5 airports. I would probably fly Alaska Airlines because the delayed flights for each airport are much lower than those of America West. c. Explanations There were more America West flights to Phoenix, which is a fair-weather airport. As for Alaska Airlines, most flights went to Seattle, which has a rather inclement weather. d. Message from Simpson’s paradox We can see that America West has more delayed flights but because it also received more flights...
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...Exam Esequiel Final Garcia Dr. David Lowe ASCI 254 10/16/13 1. Discuss in detail the Deregulation Act and its impact on the airline industry. Include what brought it about, its provisions, and effects on the airlines industry, and its future. The Airline Deregulation Act is a United States federal law signed into law on October 24, 1978. The main purpose of the act was to remove government control over fares, routes and market entry (of new airlines) from commercial aviation. The Civil Aeronautics Board's powers of regulation were to be phased out, eventually allowing passengers to be exposed to market forces in the airline industry. The Act, however, did not remove or diminish the FAA's regulatory powers over all aspects of airline safety. a. The effects of this Act. The maintenance of safety as the highest priority in air commerce; Placing maximum reliance on competition in providing air transportation services; The encouragement of air service at major urban areas through secondary or satellite airports; The avoidance of unreasonable industry concentration which would tend to allow one or more air carriers to unreasonably increase prices, reduce services, or exclude competition; and The encouragement of entry into air transportation markets by new air carriers, the encouragement of entry into additional markets by existing air carriers, and the continued strengthening of small air carriers. b. Exposure to competition led to heavy losses and conflicts with labor unions for a...
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...COMM 225, FALL 2015: CASE STUDY DUE: November 28, 2015, 23:55 HR, SUBMIT ONLINE IN THE DROP BOX Each group is required to solve both cases provided below (i.e., answer all 4 questions) TO BE DONE IN GROUPS OF MAXIMUM OF 3 STUDENTS FROM THE SAME SECTION (WITH SAME CONTENT EXPECTATIONS) CASE 1: Cold Stone Transforms the Ice Cream Social with Facebook By Casey Hibbard (Published November 22, 2010) (Full length article available at http://www.socialmediaexaminer.com/cold-stone-transforms-the-ice-cream-social-with-faceb ook/) Ice cream has always been social. But Cold Stone Creamery has found a way to make it even more so—with Facebook. Today, Cold Stone continues to innovate outside the kitchen, recently releasing what may be the first eGift feature on Facebook, and running contests that get thousands engaged even more deeply with the brand. The payoff goes well beyond greater customer engagement; Cold Stone’s promotions add to the bottom line by moving people from their computers to physical stores. In July 2010, Cold Stone made eGifting more tangible. Now you can send Facebook friends a code for an actual ice cream creation eGift, ranging from $5 to $7, right from the Cold Stone Facebook fan page for delivery via Facebook or email. Like a gift certificate, recipients can instantly redeem the gift at any of the retailer’s American locations by showing a printout or the code on their mobile phones. For a viral effect, the eGift shows up in the recipient’s...
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...Title: the form of Budleigh Salterton beach is influenced by the processes acting upon it. Budleigh Salterton beach is stated on the south coast of Devon, England towards the western start of the World heritage Jurassic coast. It is a pebbled beach which the shapes of the pebbles being flat and oval as opposed to circular. The investigation was carried out in groups of 4 with individual participants doing different task, which was sorted randomly. The first take was measuring pebble size, to do so we measured the longest axis using a tape measure, which we used centimetres for the measurements. We found that this method was easy and there was little chance of doing it wrong. The site of these pebbles was chosen systematically as the pebbles were measured at every dip and crest along the beach. After systematically choosing the site, a quadrat was randomly placed and a participant would have to measure 20 pebbles within the quadrat. One participant would be measuring all 20 pebbles, this can get tedious, therefore the results at the start of the investigation could be more reliable and accurate than those collected at the end of the investigation due to lack of motivation. Furthermore as there were so many pebbles to measure within the allocated time period, this could have made some of the readings inaccurate however in contrast to this at each point there was 20 pebbles measured and none less. This is beneficial as we were able to collect all the data needed. Another method...
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