Southwest Airlines Corporation Essay examples
Southwest Airlines was incorporated in Texas and commenced Customer Service on June 18, 1971, with three Boeing 737 aircraft serving three Texas cities - Houston, Dallas, and San Antonio. Today, Southwest operates more than 500 Boeing 737 aircraft between 67 cities. Southwest topped the monthly domestic originating passenger rankings for the first time in May 2003. Yearend results for 2008 marked Southwest’s 36th consecutive year of profitability. Southwest became a major airline in 1989 when it exceeded the billion-dollar revenue mark. Southwest is the United States’ most successful low-fare, high frequency, point-to-point carrier. Southwest operates more than 3,300 flights a day coast-to-coast, …show more content…
Organization of Southwest Airlines is described as an upside-down pyramid. The upper management is at the bottom and supports the front line employees, who are the experts. This is Herb Kelleher's unorthodox leadership style, in which management decisions are made by everyone in the organization, not just the head executives. The company is described to not have much emphasis on structure; instead employees are encouraged to think freely without constraints such as titles.
At a glance, the company's source of competitive advantage is its low price tickets. Most of its customers are people who are willing to forego in-flight meals, direct routes and fancy seats if that would mean for a cheaper ticket. Not to imply that Southwest doesn't provide direct flights, but that is offered at a higher price.
The reason for Southwest Airline's success is due to their low-cost model. The Southwest Airlines consists solely of Boeing 737s and offers only coach seats. Southwest Airlines also do not offer in-flight meals, only peanuts and other snacks. Southwest is simple and direct at the goal of their service; a primarily short-haul airline that flies directly from city to city, with just one type of plane (the Boeing 737) and the lowest costs. With a simple goal,