...ecological turmoil in the past two decades. This turmoil has brought to the fore the challenges being faced by the Aviation Industry in the world which have, in most cases, led to decreased profitability, lower growth rates, safety concerns and employee lay-offs among others. However, in-spite of the above mentioned challenges in the industry, Southwest Airlines has emerged as one of the most creative, most price competitive, safe, innovative and flexible company in the industry. The company has overcome unsurmountable challenges to become what is perceived today as a successful model of excellence in the industry with an extraordinary safety record in the last 40 years. In its forty-three years of service, the Dallas-based Airline continues to differentiate itself from other carriers with exemplary customer service delivered by nearly 46,000 employees to more than 100 million customers annually. It is also known for its triple bottom line approach that takes into account the Carrier's performance and productivity, the importance of its people and the communities it serves, and its commitment to efficiency and the planet. Southwest Airlines has shareholder-value through capital efficiency which is targeted at 15...
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...Executive Summary Southwest is a company founded in 1967 by it’s founders, Rollin King, Herb Kelleher, and Lamar Muse. Southwest's company model changed the rules for the air carrier industry and soon after new air carriers were created based on Southwest’s model. Southwest focused on their customers and company culture in order to really make their company stick out from other air carriers. They also had cheaper air fares and shorter turnaround times compared to the U.S. average within the industry. As Southwest continues to expand throughout the years they find it harder to maintain the great company culture that attracts their customers. In order to not lose any market share they must focus on their customer service, company culture, on-time arrivals, and also low air fares. Focusing on increasing their demand and market share combined with a focus on their customer service will allow Southwest to maintain and expand their market position within the U.S.’s air carrier industry. Founded in 1967, Southwest has grown to become a company known for its customer service, low-fares, and high reliability. The founders of the company were Rollin King, Herb Kelleher, and Lamar Muse. The founders had created a strong company model that changed the rules that airlines all over operated and competed by. It became such a strong model that by 2008 many airlines were actually created based on Southwest’s company model. Southwest planned to stick out by charging fares that were...
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...44th year of service, Dallas-based Southwest Airlines (NYSE: LUV) continues to differentiate itself from other air carriers. When Southwest Airlines first took to the skies in 1971, the idea was simple—offer low-fare air travel with the best Customer Service delivered by people who have a passion for serving others. Southwest Airlines was founded by Herb Kelleher and Rolling King. The company started its services for San Antonio, Dallas and Houston. The company was the first to introduce passenger programs that changed the airline industry. In the mid-1980s, the company was first to offer the frequent miles program. This program allowed travelers to bank traveled air miles to be used later as credit for a reduced airfare or free ticket. It was also the first airline company to offer senior discounts, fun packs and fun fares. In the 90s, the airline continued to introduced passengers to “newness”. In 1994, Southwest became the first major airline to offer ticketless travel. In 1996, Southwest became the first major airline to post a website with the launch of our “Home Gate” site. Southwest Airlines had other “first” as well. It adopted the first profit sharing plan in the US airline industry in 1973. The employees own almost 10% of the company stock through this plan and others. 87 percent of the company is unionized. The pilots are represented by the pilot association of Southwest Airlines which is a union separate from the much larger Air Line Pilots Association. With the...
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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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...Mission and Vision Statement Today, in the 21st century, when the borders between countries erased, and people travel all over the world and within their countries, the airline industry has become more popular. Air carriers have become more sophisticated and aware of their customers’ needs; thus, they operate at all levels providing a valuable service to their customers. Talking about the US airline industry, I want to analyze such companies as Southwest Airlines and Jet Blue Air. In order to analyze these companies, it is necessary to start with what are the company aims, what is important to it, what it wants to achieve, and who the groups are. All this valuable information is reflected in the company’s mission and vision statement. Thus, let’s take a closer look at mission and vision statements of Southwest Airlines and Jet Blue Air. According to the Southwest Airlines Annual Report (2013), “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.” Moreover, the company has expanded mission statement, “We are committed to quality service for the everyday person. Southwest provides air transportation to cities all around the United States. We fly the most luxurious planes on the market with the latest technology money can buy. We competitively provide the lowest airfare price in search for the greatest advantage in today’s busy world. We provide the...
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...Southwest Airlines MGMT 420 Abstract Since the early 1980’s the number of passengers travelling via airlines has increased drastically. The airlines all went through a troubling time when the Deregulation Act of 1978 came into effect. It opened doors for more competitive airlines to be built and created a competitive environment for the airlines. Southwest Airlines since it was developed has had numerous challenges to overcome and to operate. Since those challenges have depleted it has risen to be one of the top airlines that offer the lowest air fares for its customers. They also offer their employees the best work atmosphere and culture. Their mission statement is directed to both employees and customers. They have placed multiple strategic plans that has made them successful especially after the effects of 9/11 on the economy and trust of the consumer. Though the employees of the airlines are mostly Union workers, Southwest Airline has only had one strike from their employees during their time of operation. Southwest Airlines utilized promotional tactics such as offering safe, reliable, low cost flights with exceptional service. The company wanted to ensure that it was meeting the needs of both leisure travelers that did not have the funds to pay for expensive flights and for the travelers that were on time restraints and had to get to their location on time. Southwest has successfully done better than its competitors when it comes to cost and respect. Their frequent...
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...Introduction Southwest Airlines was founded in 1967 by Rollin King and Herb Kelleher in vision of creating an affordable airfare to public. They had the idea that if they could offer the speed and convenience of air service at a price competitively near that of driving or bus service then they could win over customers. According to frequently-cited story, King described his vision concept to Kelleher over dinner by drawing on a paper napkin a triangle symbolizing the routes, Dallas, Houston, and San Antonio, later became known as “The Golden Triangle”. This image is still found today on their website. In November 27, 1967, with $500,000 in the bank account, Kelleher filed the application with the Texas Aeronautics Commission (TAC) with only three Boeing 737 aircraft. The original name of the company was Air Southwest co. (Southwest Airlines, 2012) In March 1971, Lamar Muse joins Air Southwest as president and sold promissory notes raising an excess of $1.25 million to cover aircraft and startup cost and changes its name to Southwest Airlines Co. (Southwest). In September 29, 1971, Southwest receives it fourth aircraft. The primary aspect of the firm’s business model is to eliminate the unnecessary frills offered by competitors, thus reducing the cost to customers. Southwest also reduced cost by focusing on a smaller number of routes and only flying one type of aircraft, the Boeing 737. Choosing only to fly one type of aircraft was a very strong and successful strategic...
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...Southwest CEO Amanda McKenna MAN103-015-002 Sunday November 25, 2012 Instructor: Jean Anderson Southwest Airlines has been in business for over 25 years. It has high executive development. The most impressive thing about Southwest Airlines, perhaps, is that over the past 25 years it has managed to retain its one- of a-kind corporate culture. Southwest has grown from a three airplane Texas puddle jumper into the world’s sixth largest airline in terms of enplanements. Southwest operates a fleet of 243 Boeing 737s and it now employs 23,000 people. They serve 51 cities in 25 U.S states. Southwest offers manager in training programs as well as leadership classes. Southwest recruits about 95% of executives internally. It is said that the airlines success rate is bringing in outside executives is probably no better than 50%. Southwest has a culture that depends on employees at all levels. Southwest’ success is entirely home grown. Southwest Airlines maintain permanent low cost for permanent low fares. It is the only way to run a permanently profitable airline. Southwest ranked N0.4 among U.S majors in terms of passenger enplanements. Southwest’s route map comprises 59 airports serving 58 cities in densely populated areas. So, Southwest Airlines offers low cost air fare and is a high-tech company. It has several different airports in many cities and is constantly growing and evolving. They treat their customers as well as their employees with high respect and kindness. Their...
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...Mission Southwest Airlines' mission statement reads: "The mission of Southwest Airlines is dedicated to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit." All these traits are what have made Southwest # 1 in fewest customer complaints for several years running. Southwest continues to thrive on its reputation from this # 1 ranking as well as reap monetary rewards that come with this distinction. Southwest’s commitment to their employees reads: “We are committed to provide our Employees a stable work environment with equal opportunity for learning and personal growth. Creativity and innovation are encouraged for improving the effectiveness of Southwest Airlines. Above all, Employees will be provided the same concern, respect, and caring attitude within the organization that they are expected to share externally with every Southwest Customer” Objectives Strategy The strategy that Southwest Airlines should use in order to continue its success is also based on the “Short-Haul” strategy. The difference is that the strategy must be inter-converted. Southwest can try its best to duplicate its “Short-Haul” strategy globally. For instance, it can do exactly the same business with the same strategy once again. But this time, Southwest has to do it in every part of the world. For instance, Southwest can expand its business in France, Germany, Australia, Russia, China, Japan, Poland, Greece, etc. All Southwest has...
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...Southwest, Inc. Case Analysis COMPANY NAME: Southwest Airlines Co, Inc. INDUSTRY: Southwest Airline, Inc. COMPANY WEBSITE: (http://www.southwest.com/html/about-southwest/history/fact-sheet.html) COMPANY BACKGROUND: Southwest Airlines traces its roots to the March 15, 1967 incorporation of Air Southwest Co. by Rollin King and Herb Kelleher to provide service within the state of Texas. Southwest Airlines was incorporated in Texas and commenced Customer Service on June 18, 1971, with three Boeing 737 aircraft serving three Texas cities-Houston, Dallas, and San Antonio. Today, Southwest operates 550 Boeing 737 aircraft among 72 cities. Southwest topped the monthly domestic originating passenger rankings for the first time in May 2003. Yearend results for 2010 marked Southwest's 38th consecutive year of profitability. Southwest became a major airline in 1989 when it exceeded the billion-dollar revenue mark. Southwest is the United States' most successful low fare, high frequency, point-to-point carrier. Southwest operates more than 3,400 flights a day coast-to-coast, making it the largest U.S. carrier based on domestic passengers carried as of December 31, 2010. On May 2, 2011, Southwest acquired Orlando-based AirTran Airways and expects to complete the integration of the two airlines over the next several years SWOT ANALYSIS: Strengths: The biggest strength that the case study focused on was advantage that Southwest is that it is the most productive airline in the sky...
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...How Southwest sees its own environment in its own business and Industry Southwest Airlines’ Mission and Objectives Southwest Airlines' mission emphasizes a remarkably large degree on customer service and employee commitment. 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 proclaims, "We are a company of People, not planes. That is what distinguishes us from other airlines and other companies." In many respects, the vision that distinguishes Southwest from many of its opponents is the degree to which it is defined by a unique partnership with, and pride in, its employees. The airline's goal is to deliver a basic service very proficiently. This translates into a number of central objectives. A fundamental pillar of its methodology is to provide safe, low price transportation in combination with maximum customer convenience. The airline provides a high rate of flights with consistent on-time departures and arrivals. Southwest's employees also desire to make this product service a "fun" experience Southwest Airlines’ Strategy Southwest Airlines is categorized as a Low Fare/No Frills airline. However, its size and importance have led most analysts to consider it to be one of the major airlines despite its fit in the low fare segment. In a fundamental sense Southwest's business level strategy is to be the cheapest and most efficient...
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...Southwest Airlines Kaushal Desai Vaishali Patel Debra Quach Introduction Although the airline industry is no longer experiencing the rapid growth it exhibited before 1990; commercial air travel in the U.S. remains the preferred method of transportation for a majority of Americans due to cost-effectiveness and timesaving characteristics. From 1980 to 1990 the number of passengers traveling by air increased by approximately 72%, in contrast, in the 1990-1998 period, the airline industry only experienced 36% growth. Furthermore, during 1965-1978, the government regulated the airline industry by forcing artificial wage increases and artificial price levels. In the postderegulation era, labor negotiations were the cause of many labor strikes. The big carriers have tried to cut costs, but have been constrained by strong union opposition. For example, “Unions have fought against moves to shift unprofitable routes to lower cost regional jets with lower paid pilots.” Confronted with cut-throat competition, particularly from low-cost rivals such as Southwest, now America's fourth largest carrier in terms of traffic flown, the big airlines have found themselves caught traditional fare wars that cut into their already slim profit margins. The domestic airline industry in the United States is characterized by intense rivalry and low profit margins. Through product differentiation and a strategy of low cost and no frills, Southwest has been successful in distinguishing itself from its...
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...It has been in business for over forty years. It is a commercial airline that services thirty nine cities. The company Head Quarters is in Dallas, Texas. They recently merged with Air Tran Airways and are now working under one name. | Identify the investor’s relations link and review the company’s investor relation information. The investor relation is dedicated to the three P’s. Performance, People, and the Planet Southwest (LUV) is the symbol that was chose to represent its home base of Dallas Love Field its employees and customer relations. It is known for its excellent customer service. Southwest Airlines has endured thirty-nine years of profits. It made over 400 million in free cash Flow which means a company is able to its debt. On May 2nd, 2011 Southwest finished its purchase on all the stock of Air Tran Holdings. There are forty- one years of service and they still can be differinate from other low cost carriers. Provide a financial summary of your selected company’s financial health. Southwest airlines received a B+ by the (GRI) Global Reporting Imitative which is a standard grading of company sustainability. December 31, 2011 the company operated 698 aircrafts, 610 was Boeing 737 and 88 Boeing 717 and serve 39 states and 72 cities. It is a passenger airline that offers air transportation in the US. The company headquarters is in Dallas, Texas. It was founded by (King. R., Kelleher, H. 1967) Define two financial concepts and how they played a major role...
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...Diversification Strategies Southwest Airlines Southwest Airlines was started 45 years ago in 1967 by two entrepreneurs: Herb Keller and Rollin King who had the right vision and culture by which to become successful entrepreneurial leaders. This vision was achieved as Southwest Airlines became the greatest airline in the USA. As a young business in the airlines industry, Southwest Airlines in the initial years confronted very tough situations, and it was due proper planning and with the assistance of its employees that kept Southwest Airlines afloat from sinking. There were already pioneer big companies well established in the airlines industry when Southwest Airlines joined the industry. Some of these companies had a good share of the market and with low over head costs. Such a scenario makes it problematic for a new comer to get a solid footing in the industry. Through these decades, times have been changing and Southwest airline have been changing its waste of operation to keep up with the time. Gould stated, “Core competencies are not constant. They tend to change as the organization changes. Therefore, it’s important that the competencies are flexible and not etched in stone.” (p.5, 2008) The history of the air industry is characterized with very tough competition among companies. Besides, it is even tougher for new companies to enter the industry. The corporate head office of the Southwest Airlines is located in Dallas, Texas and that was where it was initially...
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...also from Southwest Airlines website for the commercial air portion. The distance is 471 miles one way or 942 miles round trip for a car and 471 miles directly by air. The flight data provided a one way trip to Jacksonville, FL. | Automobile | Business Aircraft | Commercial Aircraft | | Time | Cost | Time | Cost | Time | Cost | Office to Airport-Airport to Office | | | 45 minutes each *6 people | $360.00 | 60 minutes = $80.00*6=$480.00 | $480.00 | Time in airport, boarding, deplaning, rental car check-in | | | 45 minutes =$60 per person | $720.00 | 90minutes=$120.00 *6*2=$1440.0060 minutes =$80.00*6*2=$960.00 | $2400.00 | En route time 942 miles | 16 hours | $942.00 | 3.0 hr | $3,900.00 | 5 hr 15 min down=$236.00 each3 hr 30 min back=$236.00 | $2,832.00 | Rental Car | 0 | $0.00 | 2 days | $220.00 | 2 days | $220.00 | Hotel | 2 nights | $2,100.00 | 1 night | $1050.00 | 1 night | $1,050.00 | Mileage on POV | 942 miles | | 20 miles each | $120.00 | 20 miles each | $120.00 | Per Diem | 3 days | $1,170.00 | 2 days | $780.00 | 2 days | $780.00 | Parking Costs | | | 2 days | $240.00 | 2 days | $240.00 | Salary | 27 hours | $1,2960 | 12 hour | $5,760.00 | 17.75 hours | $8,520.00 | Total Cost | | $17,172.00 | | $13,150.00 | | $16,642.00 | Findings The results of the comparison are interesting. The most economical way to travel from Norfolk, VA to Jacksonville, FL is by utilizing a business aircraft. The air fare on Southwest was low...
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