This document provides information about Southwest Airlines, including its history, operations, achievements, and strategies. It was founded in 1971 in Texas as a "discount airline". Key points are that it operates over 90 destinations within the US using Boeing 737 aircraft, has over 46,000 employees, and has achieved over 40 consecutive years of profitability. Its strategy focuses on low fares, high-frequency short flights, and excellent customer service.

1. SOUTHWEST AIRLINES
BY-VISWACHAITHANYA
(2T3-11)
ANUPAMA (2T3-12)
D. PALLAVI (2T3-13)
EVITA (2T3-14)
BHANU PRIYADARSHINI (2T3-15)
G. SAI SOWJANYA (2T3-17)
Siva Sivani Institute of Management , Kompally,
Hyderabad(2013-2015 )

2. About SouthWest Airlines
Started Services in Texas in U.S. by Herb Kelleher and Rollin king in 1971.
Known as a “discount airline” since 1973.
• 737 Boeing Air crafts,
• 46000 employees,
• 3600 flights per day
• Providing services in an approximate of 57,900 customers per day.
• 93 destinations over 41 states .

3. MISSION
• Dedication to the highest quality of customer service
delivered with a sense of warmth, friendliness,
individual pride, and company spirit.
• It primarily provides short haul, high-frequency,
point-to-point, low-fare air transportation service
among 93 destinations in the United States.

4. Achievements
• 2014 – Travelers Choice Award.
• 2003 Selected as “AIRLINE FOR THE YEAR”
• 2007 included in top 100 most innovative technology
organization.
• First airline to establish a home page on internet
• Ranked number one in customer service
• 43 consecutive year of profitability

5. • How they acquired the #1 position in terms of
services providing to customers and what are the
strategies they are following to achieve these
continuous profitability?

6. UNIQNESS
• Service
• Operations
• Cost control
• Marketing
• People
• Corporate culture

7. Southwest Service
• Passengers related activities
• Employees related activities
• They encourage good relations between employees
and passengers.
• They made an experiment by giving traditional
tickets.

8. SouthWest Operations
• Own ticketing
• Travel agents – 10% commission, 55% booked by them.
• Flew into uncongested airports which reduced 15%-25%
of average flight time.
• Interline baggage–doesn't coordinate with other airlines.
• Drinks and snacks were served
• 84% unionized workforce

9. • Southwest flew only BOEING 737 JETS.
• The company had 150 that, in total, flew an average of
1,500 trips per day.
• The 737 was the smallest plane in Boeing’s fleet, seating
137 passengers.
• The 737s had an average life of 20 years.
• The average age of Southwest’s planes was seven years, one
of the lowest averages in the industry.

10. SouthWest Cost Control
• Cost control in operations like fuel
• Gate costs and landing fees differ
everywhere.
• No. of departures, 10 from each gate.

11. Marketing
• Expansion in new cities
• Public relations- Sponsored golf
tournament
• Ambassadors- customers

12. People
• Customers are important in selection process, provide
feedback in decision making
• Peer hiring, pilot-pilot hiring and line employees- lines
employees hiring.
• Cross training- Switch jobs and Broad latitude – serve
customers.
• Recognition
• Compensation was low, but the employees had
psychological satisfaction

13. INVERTED PYRAMID APPROACH

14. Corporate Culture
• The feeling of the place
• Small family and spirit
• Working towards one common goal

15. SWOT ANALYSIS
Strengths:
• Employee Satisfaction
• Low fares
• Stable profitability
• Scheduled services
• Leadership
• Customer service
Weakness
• No international flights
• Carry small amount of
freight and cargo

16. Opportunities
• Focus on international level.
• Focus on popular
destinations.
Threats
• Fluctuation in fuel charges.

17. Growth Strategy
• Expansion-trouble with facilities
• New cities and routes-not for everyone and
everywhere
Marketing entry strategy
• Low operating costs
• Load factor- adding services to balance supply and
demand

18. Fuel hedging (1998)
• Purchased fuel options for years in advance to smooth out
fluctuations in fuel costs
• Substantially increased its hedging in 2001 in response to
projections of increased crude oil prices

19. The immediate expansion decision (Delivery of
two uncommitted 737’s)
• The first option was to expand within the system and add a
new segment directly between Detroit and Phoenix.
• The second option was to enter the Dayton market.
• The final option was to establish a base on the East Coast,
initiating service in Baltimore.

20. Challenges of SouthWest Airlines
• Meeting growth objectives while maintaining focus
• Preserve the SouthWest culture and spirit that had
enabled it

21. 1st Option 2nd Option 3rd Option
• Average: $2.50
• Detroit and
Phoenix
• 3 trips per day
• Gate and landing
fees are high
• Phoenix- $2.75
• Detroit- $3.25
• 500 letter written
• Average: $2.5
• Dayton market
• 226 miles
• 9,70,000 population
• Relatively stable
• Fare raising
• 50 min TAT
• Dayton-2.00
• Average: 2.5
• Baltimore
• 2.4 million people
• 611 miles
• 90 minutes
• Weather conditions
• Delays-50%

22. Thank you!!!!!!