South West Airlines

535 Words3 Pages
Herb Kelleher once said “If the employees come first, then they’re happy, a motivated employee treats the customer well. The customer is happy so they keep coming back, which pleases the shareholders. It’s not one of the enduring green mysteries of all time it is just the way it works.” That one quote explains why South West Airlines (SWA) has been so much more successful than its industry peers. Herb was always thinking of new ways to make both his employees and his customers lives a little bit easier. From its inception SWA’s had four main competencies which were lower operating costs, a corporate culture based on exceptional customer service, hub to hub service and less required maintenance resulting in more in-air time. SWA achieved these with some innovative approaches to the airline industry. One of the biggest cost cutting strategies was the decision to only use one model of airplane, the 737, which meant they only needed to train their mechanics to work on one specific engine and only had to stock their hangars with one type of engine part. This differed drastically from every other airline which uses multiple aircraft, resulting in having to have a specific technician for each one. This also affected their hub to hub approach, if one airplane was in need of repair another could be used without a drastic change to seating, fueling or FAA requirements. South West Airlines has undergone some major changes since Garry Kelly was named CEO. The airline recently completed a deal to buy one of its rivals, Airtran a move which would make SWA one of the largest airlines in the country. While every other major airline has filed for bankruptcy protection and as a result had massive layoffs, South West has seen continued growth. Recently most other major airlines have started a trend of charging customers for their bags. In keeping with its customers

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