Adjustments to Southwest Airlines Operations - 1000 Words

SOUTHWEST OPERATIONS Although in recent history Southwest Airline did some adjustments to its operation, company maintained its philosophy and stayed true to its original strategy. When company was established in 1971 its primary focus was to stick to short-haul trips, point-to-point flights, fleet only consisting of Boeing737s, high-frequency flights, low fares, and no international flights. Operating in no frills philosophy resulted in lower fixed cost which enabled Southwest Airlines opportunity for growth and created the competitive advantage. Southwest Airlines also had only a limited participation in computerized reservation systems, channeling travel agents and customers to book flights through its reservation center. Taking advantage of technology Southwest was the first national carrier to sell seats from a home page on the Internet, reaching 81% online bookings via southwest.com in 2010. COPYCAT LEAGUE Pioneering services such as providing the ticketless travel helped efficiency and lowered operational cost. Efforts to lower the fixed cost proved to be a successful formula in achieving competitive edge for Southwest Airlines. Southwest’s success did create numerous imitators. In earlier days, all competitors eventually went under. Today however, several airlines provide stern competition. JetBlue Airways based at JFK Airport and Allegiant Travel, successful and geographically diversified companies. These competitors are in fact able to include both short-haulShow MoreRelatedSouthwest Culture1113 Words   |  5 PagesSouthwest Culture Southwest Airlines: â€Å"We Love your Bags.† Taylor, April R. Strayer University Business 508 Contemporary Business Dr. Faith Glaspie-Ellis July 21, 2012 â€Å"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 Airlines was born in 1971, to Herb Kelleher and Rollin King. And this baby has yet to stop growing. Kelleher and King wantedRead MoreThe Southwest Airlines1288 Words   |  5 Pagesï » ¿Southwest Airlines Introduction The vision of a company discusses what the company hopes to achieve within a given period. The vision of a company promotes the development and is a measure of growth within the organization. The value of the company incorporates the people who are valuable to the company. The company can value its workers, shareholders or its customers in a given market. The vision of the company should be long term and should be unique compared to the visions of other companiesRead MoreMkt 500 Assignment 11860 Words   |  8 PagesDiversification 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 assistanceRead MoreDerivatives Market2534 Words   |  11 PagesHOW MUCH SHOULD WE USE DERIVATIVES HEDGES? A Study in Airline Industry Changgull Song Fordham University, Deming Scholars MBA, changgull@gmail.com For managers of airlines, it is not always easy to predict the jet fuel costs, which affect the profitability of the firm. 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So, the temperature upstairs was 80 degrees. That is an example of erroneous adjustment. Examples of an out-of-control process in daily life that are ignored are getting old, high blood pressure or other healthRead MoreMarket Strategy Case Study: Katrinas Candies1665 Words   |  7 Pagescom/college/browning/0471389161/pdf/ch14 Suppose you provide consulting services on price-setting strategies to a number of airline companies.   Please respond to the following questions based on the lecture concepts of this week. In what way the â€Å"game theory† can be a useful optimization tool in making pricing decisions by airlines? Baggage fees introduced by airlines provides for an interesting game theoretic analysis between the various stakeholders. Based on ones goals, each air lines chooseRead MoreSouthwest Airlines : Company Analysis1770 Words   |  8 Pages â€Æ' Company Analysis: Southwest Airlines 1. Company Description Air Southwest Co. was established and incorporated in 1967 by Rollin King and Herb Kelleher, servicing Dallas, Houston, and San Antonio. In March 1971, Air Southwest Co. officially became Southwest Airlines Co (SuccessStory, n.d.). By mid-1980, Southwest Airlines was the first to offer a frequent miles program (AvStop Online Magazine, n.d.). From 1981-1984 Southwest Airlines was consistently rated number one for its great customer service