Analysis Of Southwest Airlines

Improved Essays
Low Cost Carriers
First of all, Low Cost Carriers (LCCs) is now one of the important businesses in the airline industry. LCCs’ most strength of service is the price of tickets. They offer lower fare operating short-haul and point-to-point flights. Among various airlines, Southwest Airlines is one of the successful LCCs, and it takes unique approaches to successfully differentiate itself from the competitors. It focuses on people, the process and physical evidence. According to “Southwest Airlines: In a Different World,” Southwest Airlines has been the airline that serves the most U.S. customers with most flights (Heskett and Sasser Jr., 2013). As one of the LCCs, Southwest Airlines offers lower fare comparing with full service carriers.
…show more content…
While most firms consider differentiating actual products, which are tangible, because customers can easily recognize the difference in quality, Southwest Airlines takes a different approach from other airlines. It focuses on its internal customers: employees. The factor that has made Southwest Airlines as one of the most profitable and successful airlines is its employees. Because it has happy friendly employees, it has happy customers as well. To satisfy the customers through its service, which is intangible, the strategy starts at the hiring process. In the interview process of Southwest Airlines, even pilots are interviewed in groups so that the company can assess how the candidates work in a team and see a critical factor above and beyond the technical skills that are necessary as a pilot (Muduli and Kaura, 2011). Under this process, Southwest Airlines has built a good relationship between employees and customers, and also has successfully created brand recognition, and they remained as a profitable airline when some full service carriers experienced …show more content…
Emirates Airlines emphasizes the focus on the actual product. It differentiates itself by offering the latest and modern service. Emirates Airlines is the second company that purchased Airbus A380, which is the largest airplane. The large airplanes make more seats and space available on the airplanes and attract more new customers as well. Emirates Airlines ordered 90 of the airplanes while its competitors purchased fewer. In this type of airplanes, Emirates Airlines installs a bar and a shower room in the first class cabin to make a difference from competitors. By offering the newest and latest product in the service it has attracted customer’s attentions and increased the number of passengers who use the

Related Documents

  • Improved Essays

    According to Elliot, Southwest is known for its customer service and higher prices, while Spirit is known for its low rates and poor customer service. This essay will discuss Elliot’s point of view on the subject and the evidence he uses to support his claims. In Elliot’s article, he suggests Southwest Airlines is the better of the two airlines. This is evident in the language that is used in “A Tale of Two Airlines.”…

    • 791 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Case Study: United Airline

    • 1362 Words
    • 5 Pages

    United Airlines has completed an overhaul their fleet aircrafts to include Wi-Fi, on-demand streaming, power ports for long international flight, and flat in beds seats for premium cabin. Through, the introduction of more fuel-efficient airplanes, fuel cost has deceased, which in turns offers lower fare airline tickets. Jim Compton, United’s executive vice president and chief revenue officer, said, “The reconfigured 767-300 is just one more example of how we are redefining air travel by providing our customers more choice, greater comfort and a better value” (United Hub 2012). As reported in January 2015 with the changes made to the fleet, and remolding of several hubs profitability has continued in a upswing. Finally, United Airlines revised their loyalty to reward systems to be comparable with other airlines’ programs.…

    • 1362 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Given that the services an airline provides isn’t a something that can be imported or exported, it makes taking a look at the global strategy within this industry a little more complex than most. In most cases, airlines rely on alliances, mergers or acquisitions as a way of expanding into new markets or for global penetration. Southwest Airlines is one the largest domestic operations in the United States, and recently the company acquired AirTran in a bid to boost its global…

    • 900 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    For my financial performance discussion of Spirit Airlines, I have reviewed and analyzed several standard airline performance measures from four years at the beginning, and four years after completing the transition to an ultra-low cost carrier (ULCC) strategy. Since the early 90’s, Spirit gradually expanded primarily along the eastern United States and into Latin America. In the years following September 11, 2001, Spirit struggled like many other airlines and was on the verge of bankruptcy, which is when CEO Ben Baldanza began integration of the ULCC concept (Nicas, 2012).…

    • 712 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    The attacks certainly affected the aircraft industry’s macro environment in terms of economy, technology, social and political factors. According to former Southwest CEO Gary Kelly, the company execution and ability to execute is devoted to detail-oriented and hard-working CEO. In addition, by not laying off its employee after 9/11, the Southwest airline showed to be a business with moral principles. Indeed, the post-9/11 period has added to Southwest’s ability to face any storm that comes its way. By maintaining its consistent management style, low-cost structure and flexibility Southwest will be able to react quickly to any environmental…

    • 816 Words
    • 4 Pages
    Improved Essays
  • Decent Essays

    In summary, United Airlines and American Airlines during the last year have altered the composition of their fleet. The both airlines have retired several of the older type aircraft but, newer aircraft have been incorporated to their fleet. The average age has been decreasing for the fleet of United Airlines and American Airlines. These two factors show a renewal of their fleets, with American Airlines having a younger fleet when compared to United’s. United Airlines during 2006 had a different fleet to their current listing.…

    • 219 Words
    • 1 Pages
    Decent Essays
  • Improved Essays

    Why Southwest Hospitality, compassion, and quality are all words that come to mind when I think of Southwest Airlines. Travel is something that I have been fortunate enough to experience throughout my life, domestically and internationally. Whenever I have the opportunity to take Southwest Airlines, I know I am in good hands. It’s that kind of trust that makes any travel experience more than just getting from point A to B. What is unique about Southwest, is that that level of compassion and care can be seen not only through the service, but also the people that make up and fly Southwest.…

    • 601 Words
    • 3 Pages
    Improved Essays
  • Great Essays

    Southwest Airlines was founded in 1967 and in just two years the business was able to break even despite having lowest fares as compared to its competitors. South west airlines consider its people as its biggest assets and treat them well by providing them flexibility in the workplace, recognition and appreciation for outstanding performance as well as for length of service, involving them in group decision making, team building approach, training. Southwest airlines believe that employee should bring back home a satisfaction of working at Southwest Airlines. Ground and in flight employees are encouraged to be creative in a way they delivered announcements to customers. Some employees sang the messages and some used to speak in tones of different cartoon characters to convey messages.…

    • 1475 Words
    • 6 Pages
    Great Essays
  • Improved Essays

    By locking up fuel hedging contracts, Southwest was able to pay less for the fuel than other competing airlines. While facing possible layoffs, Kelly challenged his ground crews to reduce the turnaround times from 55 minutes to 15 minutes. The crews were at to achieve that goal and eliminated the possibility of layoffs. By having a fleet of only having Boeing 737s, Southwest has been able to keep maintenance cost extremely low. Southwest has had their flight attendants play games with their customers, while in flight.…

    • 684 Words
    • 3 Pages
    Improved Essays
  • Decent Essays

    British Airways positioned its airline as a good standard and good quality airline industry. It’s also being one of the leaders in its own group. Therefore, these five categories explain that British Airways is not only focusing on core product but also augmented product as well. It tries to fulfil different customer needs and meet the level of expectations from different class of customers. British Airways is aiming to introduce their potential new first class for the future which is totally different from the present first class attributes.…

    • 904 Words
    • 4 Pages
    Decent Essays
  • Great Essays

    It is the world's largest airline when measured by fleet size, revenue, scheduled passengers carried, scheduled passenger-kilometers flown,…

    • 1398 Words
    • 6 Pages
    Great Essays
  • Improved Essays

    Every employee of southwest is iconic and has his own personality. The original dress clothes, conversations humorous, and interesting broadcasts lead to an atmosphere of relaxation and happiness. It can ease the tension and pressure of the passengers to take Southwest Airlines, as well as the establishment of additional entertainment for everyone on board the plane without spending additional funds. Also a lot of focus on the mind can build a wall between people. It 's hard to express the true self in an environment that focuses…

    • 976 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    However, in 2011 AA placed the largest aircraft order in the history of aviation in a deal with Boeing and Airbus. AA contracted for 460 single aisle narrow body aircraft from the Boeing 737 and Airbus 320 families. In order to decrease operating and fuel costs, these new families reduce fuel cost by 35 percent over the MD-80 and 15 percent over the wide bodied Boeing 757 and 767-200. This will also increase commonality across their fleet and have a positive impact on maintenance costs (AA,…

    • 946 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Not only the Singapore Airlines deals with high-standard airliners, Singapore Airlines also competes with numbers low cost carriers (LCC) which operates to and from Singapore. 3-4. Customers: As the Airline industry grows up, more and more passengers of airlines will seek for greater service and expect more from the industry. Nowadays customers eventually expect more convenience while taking long haul services, simultaneous upgrades of services on air travel is a must. Especially for Singapore Airlines, since they aim to keep up the premium quality offer to their customers, 4.…

    • 1363 Words
    • 6 Pages
    Improved Essays
  • Great Essays

    5. The Significant of the Project The intention of this research is to assist Cathay Pacific Airline having a better understanding of what the front-line employees’ concern and consider as their job satisfaction. With higher job satisfaction, Cathay Pacific Airline can gain the commitment from the employees in return, and formed a win-win…

    • 1228 Words
    • 5 Pages
    Great Essays