Strategic initiative of Southwest Airlines Southwest’s major strategic initiatives include environmental conservation to make environmentally responsible decisions while remaining true to its customers through low-cost philosophy (Southwest Airlines, 2014). Southwest Airlines is trying to lead the airline industry in emission reduction through fuel efficiency (Southwest Airlines, 2014). The company has maintained industry leader position in fuel efficiency and greenhouse gas (GHG) reduction by investing in equipment’s, innovation in technology and building partnership with the industry as well as the government (Southwest Airlines). Biofuel: In 2014, Southwest signed an agreement with Red Rock Biofuels, LLC to purchase 3 million gallons of low-carbon renewable jet fuel in Oregon using forest residues (Southwest Airlines, 2014). This forest residues helped forest to reduce the risk of destructive forest fires (Southwest Airlines, 2014). In 2016, the company is planning to deliver amalgamated product of biofuel and jet fuel, which is projected to be used by Southwest San Francisco’s Bay Area operations (Southwest Airlines, 2014). According to the International Council on Clean Transportation (ICCT) Report, …show more content…
In 2014, Southwest acquired 33 new Boeing 800 aircraft i.e. 13% of their total fleet. The Boeing 800 is better and is major fuel efficient aircraft as compared to Boeing 737 classic aircraft and the remaining AirTran 717-200 aircraft that was removed from Southwest services in 2013 and being leased to Delta Air lines. Boeing 800 also has fuel savings available on an available seat miles basis (ASM) (Southwest Airlines). Moreover in 2017, Southwest is planning to launch 6 to 7% more fuel-efficient aircraft i.e. Boeing 737 MAX aircraft compared to 737 Classic Fleet (Southwest