Southwest Airlines Case Analysis

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Southwest Airlines: Case Analysis NOVEMBER 13, 2013 Company Profile Southwest Airlines was founded in 1967 by Rollin King and Herb Kelleher when they realized that an intrastate airline would be a great opportunity to cash in on the inconvenience and expense of ground travel between Houston, Dallas, and San Antonio. It took four years of legal battles before the airline was able to have it first flight. From the beginning Southwest Airlines was a one of a kind airline that offered short-haul flights and pioneered the “low cost strategy.” The lower airfare costs of Southwest allowed them to compete with ground travel companies in the region of the Golden Triangle. Southwest Airlines has since grown to offer their services in forty-one states. Statement of Facts Since Southwest Airlines was created its mission has been to have a low cost no frills airline that attracts repeat customers because of the lower costs and the quality employees that work there. Southwest believes that its employees help differentiate its airline with other airlines that are similar. The only look to hire the best employees for each particular job they have. They look for energetic applicants with attitude that can be trained the skills needed for the job. Max Nisen (2013) states that Southwest’s success comes from its founder and the emphasis that is put on culture and customer satisfaction. When Southwest started it focuses on short-haul flights at less congested airports. They didn’t offer any meals but did offer a snack of peanuts. With their short flights they didn’t require as many planes or gate facilities. All this boiled down to a low cost air travel that was able to compete with ground transportation services. During May of 2011 Southwest Airlines purchased all of AirTrans outstanding common stock increasing Southwest’s fleet by 140 aircraft and the ability to spread

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