BACKGROUND

Founded: March 15, 1967 by

CEO Herb Kelleher
Headquarters: Dallas Love Field
Commenced operation: June 18,
1971 with 3 Boeing 737 aircrafts
serving 3 Texas citiesDallas,
Houston, San Antonio
Company Slogan: Low fares.
Nothing to hide.
Nations low-fare, high customer
satisfaction airline.

Fleet size: (2004) 417 Boeing

737 jets; (Jan 2016) 709 Inservice Boeing 737 jets
Service: (2004) 60 airports in 31
states throughout U.S.; (2016)
97 airports in 41 states
Revenues: (2004) $6.5 billion;
(2015) $19.82 billion
Chairman, President, CEO:
(2015) Gary C. Kelly
No. of Employees: (2004)
13,000; (2015) 49,000

MISSION
Southwest Airlines is dedicated to the highest quality of
Customer Service delivered with a sense of warmth,
friendliness, individual pride, and Company Spirit.
VISION
To become the worlds most loved, most flown and most
profitable airline.
PURPOSE
To connect People to whats important in their lives through
friendly, reliable, and low-cost air travel.

Recognitions
(since 2002) 100 Best Corporate Citizens by Business Ethics
Magazine
(2004) Best Customer Service, Best Bonus Promotion, Best Award
Redemptions by InsideFlyer Magazine
(2005) Most Admired Airline in the World by Fortune Magazine (9
years in a row)
(2005) Rank 5 in Americas Top Ten Most Admired Corporation by
Fortune Magazine
(2005) Leading Industry in Customer Satisfaction by American
Customer Satisfaction Index (ACSI)
No.1 Airline Website By Revenue by PhoCus Whright
Largest Airline Site in terms of Unique Visitors by Nielsen/Net
Rating

The Southwest Difference

Operation and Customer Relations
They did not employ the hub-and-spoke approach used by other
major airlines, such as United, American, and Delta. Their approach
was short haul and medium haul and point-to-point.
They had no assigned seats, paid its crews by trip, and use less
congested airports.
In 2005, it launched several automation services including Ding!, a
desktop application providing exclusive deals.
It has only pulled out of 5 airports.
Their pilots were among the only pilots of major U.S. airlines who did
not belong to a national union.
It only took a plane to land and ready to take off by approx. 20-25
minutes.

The Southwest Difference

Management-Employee Relations
CEO Herb Keller was committed to a philosophy of putting
employees first.
Their employees were among the highest paid in the airline industry.
They have low employee turnover rate in the airline industry.
They have a culture of hard work, high-energy, fun, local autonomy
and creativity.
They have a unique hiring process.
They initiated the first-profit sharing plan in the U.S. airline industry
in 1974 and offered profit sharing to its employees

ANALYSIS

Southwest strives for goal congruence.

It is a functional organization headed by CEO Herb Kelleher.
It values its employees and customers.
Control system for job hiring process is unique.

SWOT Analysis

STRENGTHS
Point-to-point routing
Service and product innovation
Quality Customer Service
Technological expertise
Reputable image
Friendly, Fun Culture
Low Turnaround Time
OPPORTUNITIES
Long-term industry growth
More competitive employee benefits and
salaries
Modern advertisement and campaigns
Variety of promotional fares

WEAKNESSES
International flight services
Growth into congested markets

THREATS
Number of rivals and their relative size
Replication of business model by other
airlines
Costs of aviation, fuel and labor
Economic downturn
Weather
Terrorist attack

RECOMMENDATION

Pursue internet marketing opportunities aggressively

Continuously improve or maintain turnaround time
Continuously create advertisements and promotional campaigns
Broaden its area of operations by diversifying internationally
Continuously strengthen the management-employee relationship