Southwest Airlines 2010 Case Study Essay
Southwest Airlines employed many strategies over the years with their fist strategy being ads run in the media. Southwest airlines utilized a number of campaigns including skimpily clad flight hostesses, free in-flight alcoholic beverages and a “Love” campaign using the tag line “Now There’s Somebody Else Up There Who Loves You” in an effort to attract passengers. (Leavenworth) Southwest Airlines developed a ground crew turnaround plan that allowed them to add additional flights without the high expense of new plane purchases, even today their turnaround time is nearly half that of other commercial airlines. The idea of CEO Lamar Muse for system wide …show more content…
Discuss and analyze if the airlines sustained growth from the change in leadership?
Southwest Airline did maintain growth through the change(s) in leadership. Lamar Muse was Southwest Airline’s CEO from 1971 to 1978 in which time he succeeded in getting the airline off the ground, and leaving Southwest with 27 planes in operation, 2,100 employees, 14 destinations, and $270 million in revenues. During Herb Kelleher’s 20 year reign as CEO between 1981 and 2001, the airline’s numbers increased to 350 planes, more than 30,000 employees, 58 destinations, and revenues of $5.6 billion. This success continued under the charge of Kelleher’s replacements with the airlines numbers increasing to 537 planes, 34,874 employees, 69 destinations, and revenues of $10.4 billion in 2009. (Thompson, Peteraf, Gamble, & Strickland, 2010)
Compare and contrast how the executive leadership at Southwest Airlines differs between 2001 and 2010.
In 2001, Herb Kelleher resigned his position as CEO for Southwest Airlines but continued as their Chairman of the Board of Directors until his retirement in 2008. Kelleher preferred management