Southwest Airlines Case Study

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Term Paper Title	Southwest Airlines Case Study
# of Words	1069
# of Pages (250 words per page double spaced)	4.28

Southwest Airlines Case Study
     As the airline industry continues to become more competitive, each airline
is being forced to find a way to stay afloat.  Southwest Airlines seems to have
found their niche by offering what some might consider superior customer
service that exceeds all other airlines.  Since deregulation occurred in 1978, the
competition in the airlines industry has increased tremendously.    The other
major airlines are now being forced to try to compete with Southwest, not only in
the areas of customer service, but also in price.

Status Report
     Southwest Airlines was founded in 1971 with only four planes that served
Dallas, Houston, and San Antonio.  Southwest has grown to become the fourth
largest U.S. airline.  Yearend results for 1998 marked Southwest Airlines’ 26th
consecutive year of profitability which is a feat that no other airline has been
able to master.  Southwest became a major airline in 1989 when it exceeded the
billion -dollar revenue mark which has helped earn it a spot as a member of the
Fortune-500.  In the January 11, 1999 issue of Fortune magazine, Southwest
was rated the number four company to work for in the United States.
     Southwest earned the Triple Crown award for five straight years in a row
from 1992 to 1996.  This award is given annually to the airline that has the best
on-time flight record, the best baggage handling record, and the fewest
customers complaints.  They have also received numerous other awards for their
consistent low fares, outstanding customer service, innovations in airline
technology, employee satisfaction and safety.

Distinctive Strategies and Styles
Southwest’s strategy is based on one important factor:  if you get your
passengers to their destinations when they want to get there, on time, at the
lowest possible fares, people will fly your airline.  To achieve their goal,
Southwest emphasizes an easy-going, relaxed corporate style that encourages
employee independence.  The bottom line is that happy, content employees
provide excellent customer service.  Southwest believes that people take better
care of things they own.  Southwest began the first profit-sharing program and
stock option plan which allows employees to participate in the financial benefits
of an ownership culture.  Through this plan, employees of Southwest own
approximately 13% of the company stock.
     A few years ago, the pilots’ union at Southwest struck an unprecedented
deal with the airline to freeze wage increases for 1...

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