Southwest Airlines Organizational Behavior
Herbert David Kelleher led Southwest Airlines to over 30 consecutive years of profitability, first as the company's cofounder and legal counsel from 1966 to 1982, then as its president, CEO, and chairman from 1982 to 2001. Southwest Airlines was incorporated in Texas and is headquartered at Love Field just outside of Dallas. Customer Service started 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. The company has roughly 35,000 employees located in 72 cities throughout the country. In 2010, Southwest Airlines had total operating revenue of 12.1 billion and net income of 459 million. The culture at Southwest Airlines prides itself on their unique and positive organizational culture, an encouraging working environment, and exceptional customer satisfaction. Southwest proudly declares their distinguishing factors in the airline market, “[w]e are a company of People, not planes. That is what distinguishes us from other airlines” (Buller & Schuler, 2006, p.118). Not only do competing airlines attempt to mimic this strategy but also multiple businesses outside the airline arena have attempted similar corporate cultures. But to no avail, most businesses and airlines are unable to attain this positive organizational culture. It is understood that Southwest Airlines has developed such a unique culture that has far exceeded expectations, therefore setting unbelievably high standards for other airlines to attain. This