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Southwest Airlines Headquartered in Dallas, Texas, Southwest Airlines is currently the U.S.’s largest domestic passenger airline, who transported 136 million passengers in 2014 alone and 1.5 billion since their inception in 1971 (Southwest, 2015b). The company has successfully created a distinctive corporate culture and business model centered on employing the friendliest people who provide exceptional customer service (Southwest, 2015b). Along with their employees, their dedication to…

The quote, "[The pilot’s] plane is moments from disaster. But he cannot escape the dynamic dictated to him by his culture in which subordinates must respect the dictates of their superiors." represents a major idea of how cultural PDI plays a vital role in plane crashes. In the second sentence of the quote, it says “that he can't escape the dynamic dictated to him by his culture”. This is the idea of cultural PDI and this causes mitigation and other various harmful things that can lead to a…

Rollin King and Herb Kelleher were able to create a unique and different airline based on the simple notion: “If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares; and make darn sure they have a good time doing it, people will fly your airline.” (citation). On March 15, 1967, Air Southwest Co. was incorporated. Air Southwest Co. was implemented in Texas. Kelleher was able to file the Texas Aeronautics Commission (TAC), with half a…

SkyWest Inc. Performance and Profitability Report SkyWest has been around since 1972 and today has grown to encompass one out of every 12 passengers in the US traveled on a SkyWest Inc. aircraft (SkyWest Incorporated, 2016). back in 1972 the airline was bought from Dixie airways and SkyWest was created. SkyWest has made a profit for most of its lifetime except for the first beginning few years. Those beginning few Years for a long change and upgrade switch decrease profits. In 1988 the tides…

What is an organization? An organization is a structured group of people that are managed to attain certain goals. It can be understood from the definition that an organization has to be led or managed by a person or a group of persons. This highlights the importance of the role of a leader. An organization works by using the skill of the structured group of people to create products or services that could be used or profits or non-profits. The organization is managed using policies and…

Demand and Supply According to Mathews (2015), “Spirit relies on higher passenger volume to grow its revenues, which also brings in more revenue from ancillary services” (para 5). With Spirit Airlines, Inc. putting consumers in control of how they spend their money and allowing them to create the airline package that is most favorable to them is essential. If a couple is traveling for the away for a weekend getaway, and only needs one piece of baggage checked in, with major airlines, they…

Southwest Airlines was created in 1967, as a small short distance airline. Through the 1970’s Southwest was an airline fighting for a place, living in survival mode. However, in 1980, a change began to reformulate their focus. The culture of Southwest was born of that reformulation. Southwest made the decision to focus on the heart of their company, the people. In doing this they created a culture that not only values the customer, but the people of Southwest as well. Steps to Culture Change…

Some of these factors include aspects such as the events of September 11th, stock market struggles, and the Severe Acute Respiratory Syndrome (SARS) virus, among others (Swelbar, 2009). An additional cause of such a decline was the rise of low-cost carriers, such as Spirit Airlines (Swelbar, 2009). Although their business model did not make them exempt from the economic struggles of the end of the decade for the entire nation, Spirit has managed to find a large amount of financial…

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…

cost carrier airlines face few entry or exit barriers, the core challenge for this industry and the lesson for other businesses is how to compete successfully when all of the competitors do not face the same structural forces of competition. Synopsis of the Case Since the deregulation of 1978, the airline industry weathered wave after wave of major challenges; recessions, labor issues, terrorist attacks and fluctuating crude oil prices. Thirty-five years later, legacy carriers, those carriers…