South West Case
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Transcript of South West Case
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Operational Management at South
West Airlines
--------------- A Case Study---------------------
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In 1967,Rolling King and Herb Kelleher founded
Southwest an intrastate airlines.
In 1982, Just Say When campaign
In 1987,Frequent flier programme,no. of flightstaken.
In 1992,Southwest won the annual Triple Crown
Award.
In 1996,SW started selling through Websitewww.southwest.com
http://www.southwest.com/http://www.southwest.com/ -
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Providing safe travel
Reliable/Short duration air service
Lowest possible fare
Quality service/Point to Point
Blanket strategy
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Passenger Load factor-
It is the percentage of
a plane filled withpaying
passengers.
Revenue passenger
/miles -One paying passengerflown one line
62
64
66
68
70
72
1998 1999 2000 2001 2002
Passenger Load Factor
%
0
20000
40000
60000
1998 1999 2000 2001 2002
Revenue passenger miles
million
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Aircraft Utilization-in hours and minutes in a
day an aircraft is used.
01,000
2,000
3,000
Average Daily Passengers
passengers
11:02
11:09
11:16
11:24
1998 1999 2000 2001 2002
Aircraft Utilizatin
hr:min
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Southwest avoided congested airport.
High employee productivity.
Reliable on time performance.
80 86
117 122130
141 150171 180
020
406080
100120140160180200
No
.ofDaily
Flights
Airports
Daily Departure
No od Daily flights
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Passenge
r related
departur
e
Very
lowticket
prices
No site
assignments
No
baggage
transfers
No
connection
with otherairlines
No
meals
Short
haul,
point to
point
Limited
passenger
service
High
aircraft
utlzn
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Standardized fleet of 737 aircrafts
Southwest the low fare airlines
High level of Employee Stock Ownership
Flexible Union contracts/High compensation of
employees.
15-minute gate turnaround/Limited use of travel
agents
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Increase more non stop flights
Enrich operation system
Include daily non stop flights in busy air
traffic route.
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