Research Paper On Southwest Airlines

Southwest Airlines

About Southwest Airlines

Southwest Airlines Co. is the largest low-cost carrier in North America, and also the biggest low-cost airline company in the world. Southwest Airlines is an excellent company that has successfully implemented low-cost competition strategy in a highly expensive industry. It began to become the fourth largest airline in the United States from a small airline in the 70s last century in the gap between the big airlines. In 1971, Western Southern Airlines began operating as a local small airline, and by 1990 the company earned $1 billion a year, becoming a major backbone airline in the United States market. For more than 30 years, it maintained a high profit far above the industry average level and lower

On the plane of Southwest Airlines, there is no first class seat, just like on a bus; the check-in staff gives out the plastic boarding card, which is reusable, and does not supply meals on the plane. This "no decoration" method makes the passengers take a very short time to board on the plane - in about 15 minutes (generally, the turnaround time is 45 minutes in other airlines), each plane flies 11 flights per day. Southwest airline ticket inspector, mechanic, and ground crew working in the short gap between the plane to the port are very quick and efficiency. The result is that the company's efficiency level is much better, and operating cost are absolutely lower than its

The standardization of equipment reduces the cost of parts inventory and minimizes the maintenance fees and pilots training. Also, costs are saved when finding parts suppliers, and entering long-term contracts for Boeing to build planes. By doing this, through spending variance concept, the differences between actual and expected expenses should be minimal. The low fare of Southwest Airlines has brought the full and customer loyalty of the aircraft, and has left competitors out of the market and no longer compete with the cheap price of Southwest Airlines.

Customer Service

Southwest Airlines's stock code on the New York stock exchange is “LUV”, which represents love. This is also the theme of Southwest Airlines's advertising since 1973. Southwest always provides good services for passengers and also their employees, they are fully aware of the needs of the market and customers. The ultimate goal and target of the company is the general public, so that everyone can afford the cost of flying.

Southwest's mission focuses on providing high quality customer service, both to customers and its employees. Let's use efficiency variance, the difference between what was actually used to run the airline and what was estimated, because it takes into account waste. It's not hard to argue that waste has an inverse relationship to employees and customers being happy. Fewer delays, faster response times,