Share the Spirit “ A Symbol of Freedom ”

Rollin King

Herb Kelleher

“Herb, let’s start an airline”

“Rollin, you’re crazy. Let’s do it!”

The Napkin Concept

  The Mission Statement of Southwest Airlines

Dedication to the highest quality of Customer Service

delivered with a sense of warmth, friendliness, individual pride, and Company Spirit.

Vision Statement of Southwest Airlines

At Southwest, we strive to be the new generation of flight transportation while providing luxury at a price anyone can afford.

• Just say when campaign

• Expands service to California, begins at Chicago’s Midway

Airport.• Acquires a

competitor, Muse Air

1971 1972 1973 1972 -19791967 1982-1985

Southwest Airlines is formed

Southwest was forced to sell one of its four

planes to meet payroll. Employees made up for the lost jet by turning

planes around and starting the next flight in

10 minutes.

Southwest begins service in New Orleans.

Until Congress deregulated the airline

industry (in 1978), Southwest couldn't fly

beyond Texas

Southwest begins flying between Dallas,

Houston, and San Antonio.

Southwest makes money, starting a string of 36 straight profitable

years.

Timeline

1996 2000 2001 20021987 2003

Frequent flier program and Increased number

of Flights.

In 2000,SW placed biggest aircraft order ever, delivery of 94

Boeing737.

the worst year ever for the airlines industry ,SW

posted its 30th consecutive profit

SW started selling through Website

www.southwest.com

September terrorist attacks : SW managed to

post a profit

SW Airlines was the 4th largest US airlines in terms of domestic customers carried

2006 2008 2002

Begins phasing out plastic reusable

boarding passes. New rules after the 2001

terror attacks required boarding passes with

passenger's name.

The Federal Aviation Administration proposes

a $10.2 million civil penalty against

Southwest for using planes that hadn't been inspected for fuselage

cracks.

Congress votes to repeal a law in 2014 that

prevents Southwest from operating long flights from its home base at Dallas Love

Field.

Several planes were later found to have cracks.

Revenue reduced. Kelleher steps down as

chairman.

Southwest launches service in Minneapolis and announces plans to

expand to New York's LaGuardia Airport, Boston's Logan Airport, and Milwaukee.

2009

SWA Divided the US passenger Airline Market into 3 categories:

1) Major Carrier• annual revenue 1billion; 95% domestic passengers carried • 80% all major carrier domestic

2) National Carrier • annual revenue 100million-1billion

3) Regional and Commuter Carrier • annual revenue less than 100million

• In 1978, the United States had 36 domestic carriers• The major carriers adopted the hub-and-spoke route system, SWA

adopted point-to-point route system.

•

Bold & Creative Advertisements

This is how SW Airlines replies to

their Competitors

CUSTOMERS

EMPLOYEES

MANAGEMENT

Inverted Pyramid Approach

‘Keep it Simple’ Business Model

They are known forSparse customer amenities

No seating class distinctions

Fewest customer options

No choices on type of aircraft

Simplest pricing structure

no meals

But, they are very well known for

Providing safe, Reliable, Short duration air service

Lowest possible fare

Good schedules for destinations served

Fewest cancellations

Best on-time performance

Safest airline worldwide

Fastest gate turnaround

Simplest customer-interface

Highest customer ratings

Most consistently profitable

“ The Fantastic Fifteen ”

SW:Anatomy of a 15-minute Turnaround

7:55 Ground crew chat around gate

position

8:08 Boarding call ,baggage

loading, refueling complete

8:03:30 Ground crew move to their vehicles

8:07 Passenger off

plane

8:04 crew moves towards gate

8:06:30 Baggage unloaded, refueling

8:15 Jet way retracts

8:10 Boarding complete. ground

crew leaves

8:15:30 Pushback

from backs

8:18 Pushback disengages plane leaves for runway

How SW strategy is Implemented

Passenger related

departure

Very low

ticket prices

No site assignments

No baggage transfer

No connection with other

airlines

No meals

Short haul, point to

point travel

Limited Passenger

service

High aircraft

utilization

What Makes Southwest Unique?

Southwest Airlines has become a legendary example of the power of servant leadership principles.

Its achievements are impressive considering the competitive, cut-throat airline industry in which it thrives.

Southwest Airlines has been named "one of the "Top Five Best Companies to Work for in America" by Fortune Magazine

It has had the fewest customer complaints 18 years in a row as reported by the DOT Air Travel Consumer Report

The Southwest Airlines has been profitable for 31 consecutive years, named the "2nd Most Admired Company in America by Fortune Magazine, and has an average employee turnover rate of less than 10%

If you made a $10,000 investment in Southwest Airlines in 1972, it would be worth more than $10 million today.

It has developed strong employee and customer loyalty - a feeling of devotion, duty and attachment to Southwest (West, 2005)

Southwest’s 10 Practices for Building High Performance Relationships

SUCCESS IS HOW HIGH YOU BOUNCE WHEN YOU HIT BOTTOM

WHY IT IS SUCCESSFUL ?

Competitive advantage

Internal customers

Management style Leadership

Work-culture

Family spirit

Trust

Training

Collective bargaining

Creative spirit

Discounted stock purchase

Flexibility

Open sharing of information

SWOT

•low-fare, high frequency airline committed to exceptional customer service.• great climate and culture for employees, “We hire Attitudes.”•Excellent service in the areas of on-time performance, baggage handling, and overall customer satisfaction.•SW has 481 Boeing 737 jets.

•No hub-and-spoke system (although considered by many to be a positive)•No first class seating•Fly only in USA , 63 cities and 32 states.•Uses only one type of planes.•Lack of unity in decision making ability.

•Hire more part time workers•Provide higher quality and luxuries for customers willing to pay extra•With airline companies selling planes SW can purchase models similar to the 737•Add new cities not flown to by Southwest such as Atlanta, Charlotte, Chicago, and New York

• Mergers and takeovers of other airlines could produce low-cost challenges to Southwest by those competitors•Government regulations and restrictions, Fluctuation in gas and oil prices• New entrants into the airline industry is an extremely low risk, due to the costs but it still prevails.

STRE

NG

THS

OPP

ORT

UN

ITIE

SW

EAKNESSES

THREATS

1) For the 12th year in a row, FORTUNE magazine recognized Southwest Airlines in its annual survey of corporate reputations in 2008.

2) 2003 Selected as “AIRLINE FOR THE YEAR”

3) 2007 included in top 100 most innovative technology organization

4) First airline to establish a home page on internet

5) Ranked number one in customer service

6) 36 consecutive year of profitability

ACHIEVEMENTS

7. ONE OF THE TOP 50 BEST PLACE TO WORK-AT 12TH PLACE.

8. GRASSROOTS INNOVATION AWARD -2013.

9. AIRLINES RATING IN LOW COST-AT 2ND PLACE.

10. IN WORLS MOST ADMIRED COMPANIES AT 7TH PLACE IN 2013.

11. TOP 25 Brands of 2013, AT 1ST

12. AT 1ST PLACE IN CUSTOMER SATISFACTION-2013.

13. U.S TOP 100 GLOBAL REPUTATION PULSE-AT 46 PLACE.

ALASKA AMERICAN WEST

SOUTHWEST US AIRWAYS DELTA UNITED AMERICAN

OPERATING INCOME (in $Mn) NaN 11 -56 291 20 -114 -469 -760

-900

-700

-500

-300

-100

100

300

OPERATING INCOME (in $Mn) in 2001OPERATING INCOME (in $Mn)

Operating income

ALASKA AMERICAN WEST SOUTHWEST US AIRWAYS DELTA UNITED AMERICAN

NET INCOME (in $Mn) NaN 5 -43 176 -24 -90 -365 -507

-550

-450

-350

-250

-150

-50

50

150

250

NET INCOME (in $Mn) in 2001NET INCOME (in $Mn)

Net income

CURRENT STATISTICS OF SOUTHWEST AIRLINES

Cities

Daily Nonstop Cities

Served

Year 

Departures Established      WN FLChicago (Midway)

233 64 1985 1994

Las Vegas 210 54 1982 2003

Baltimore 206 57 1993 2001Denver 167 56 2006 2003Houston (Hobby)

161 45 1971 1997

Phoenix 162 46 1982 2007Atlanta 165 44 2012 1993Dallas (Love Field)

124 18 1971 -

Orlando 120 43 1996 1998Los Angeles 109 23 1982 2003

Type Number

BOEING 737-300 122

BOEING 737-500 15

BOEING 737-700 425

BOEING 737-800 52

Credits:

KASHYAP SHAH

VINITA GOSWAMI

VRINDA JAIN

ANUBHUTI GUPTA

MANISHA NANDAL

MANTHAN JANI

SRIRAM KRISHNAMURTHY

Thank You !- Have a safe journey…