64855040 south west airlines print

7/27/2019 64855040 South West Airlines Print

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3Overview

Primarily short haul High-frequency Point-to-Point Low-fare Service 500 pound cockroach that was

too big to stamp out Expanded through 1980s to 1990sby 1993 could fly in 34 states

Also expanded to California,Northwest, Florida, East Coast

Founded 1971

Creators Rollin King and Herb Kelleher

Fleet size 472

Destination 63

Headquarters Dallas, Texas

Business Concept:

Attract passengers by

flying convenient

schedules, get passenger

to their destination ontime, make sure they have

a good experience, and

charge fares competitive

with travel by automobile

Southwest ServicesCommunication Marketing Culture


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4Achievements

Defeated industry trend by earning profits in consecutive 36years

Triple Crown - 12 time by mid 1993 ( Fewest Complaints,Fewest Delays,& Fewest mishandled bags (per 100passengers))

No. 1 : fewest customer complains

Fortune Magazine : 5th most admired company in 2007 Top global airlines survey : second behind Singapore Airlines Each plane flew 7 flights daily, twice the industry average Planes used 13 hours a day, 40% more than majors. Average age of fleet 9 years, lowest in industry

Flew more passengers per employee (record), fewest employeeper aircraft

Debt to equity ratio less than industry average Never curtailed service due to strike nor any casualty in accident



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6Communications

Flight hostesses in colorful hot pants and white knee high boots with highheels



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7Communications

Free alcoholic beverages during daytime

Core Values : LUV & Fun LUV:Now Theres Somebody Else Up There Who Loves You

Airport: Dallas Love Field Route: Love Triangle Planes: Love BirdsDrinks: Love Potion Peanuts: Love Bites Coupon: Love Ticket

Market Segmentation : Business Travelers - Time sensitive & want week day flight Price Sensitive leisure travelers - lower fare & more flexible about

flights On-Peak & Off-Peak Pricing

Weekday flights before 7 pm - $26 & others $13 Braniff - $13

Southwest - Choice of $26 - Chivas Regal scotch, Crown RoyalCanadian whiskey, or Smirnoff vodka (or, for nondrinkers a leather icebucket)



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9Services

Low Cost/ Low Price/ no-frills stragey: Tagline : Freedom to Fly

VS

Point-to-Point Model Hub & Spoke Model Minimized connections, delays, & total trip time Nonstop flights between 350 pairs of cities

Average aircraft trip - 540 miles long & 1.5hr long (in 2002) Boeing 737s:

Minimized spare part inventory size Simplify training of maintenance & repair personnel Scheduling of flights

Bypassing commission agents: $6-$8 (through Agents) vs $1(Online) vs $3-4 (Internal reservation) Ticketless Journey: No commissions 8% price on electronic ticket & 5% price on paper ticket

Lowest Turn Around Time : 15 min


(Source: Southwest Airlines)


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10Low Cost Service continued..

Avoidance of Congested airports: Preferred service airports near metropolitan areas & medium sized

cities Better-than-ever performance Reduced fuel costs No high landing fees & terminal gate costs

No reservation: To save time

Color-coded plastic cards with numbers on them Afterwards - big , bold A, B or C on boarding pass

Flight Attendants to clean up No First-class section & no fancy clubs for frequent fliers No Meals:

Offered beverages & snacks 2002 - Provided 162.4 million packages of peanuts , 51.3 million packages of other snacks, 9.9 millionalcoholic & 44.5 million cans of nonalcoholic beverages

No baggage transfer


(Source: Southwest Airlines)


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11Customer Satisfaction

We have lots of brand ambassadors out there - our customers

Family Fun: Efforts towards - positive & fun flying experience

Were kind of a big family here & families have fun together. The

passengers are part of the family too, so we have fun with them-OperatingManager Cheery & witty gate personnel Entertainment - trivia questions or comments

Who has the biggest hole in his or her sock?or

What is the weight of gate personnel?

Friendly advices - customers looking for open seats Joke sharing, playing gags, play harmonicas & sang announcements

Bunny ear - flight attendant Happy Face reputation

We dont want a phony smile. We want a genuine open spirit, someone

who really likes people & want to help out.

Out of the way help: 3 Week stay at airhostesses home



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12Customer Satisfaction continued..

Free baggage transfer


Pets on Flight


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14Advertisement

Unconventional & attention-getting ads and billboards



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15Marketing

30th Anniversary: (2001) $30 one-way fare to 30 destinations from 35 cities between June 25 &

October 26 Car rentals & hotel partners participated $30-a-day rental, $30-off discount & $30-a-day hotel room Decorations in gates, prize giveaways & employees playing games in

gate area

Change in look: (2002)Gold/Orange/Red Scheme Canyon/Blue/Red/Gold/Orange Scheme



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16Logos

Southwest Airlines started asAir Southwestand changed to SouthwestAirlines in March 29, 1971. They begin their first flight since they changed

their name on June 18, 1971.


The Takeoff logo The Green logo

The LUV emblem

Southwest Logos


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E l F i dl C l


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18Employee Friendly Culture

Employee come first and Customers come second

Emphasis on Value of PeopleKeep Employees Happy then they will keep customers happy

No Layoff Policy: since 1971 In-house Union - The Southwest Airline Pilots Association Freedom to employees

We want people to ask for forgiveness, not for permission.-Ann RhoadesDo whatever you feel comfortable doing for a customer.

Peer Hiring A Patina of spirituality:

Ive never seen so many people hug each other except at a family

reunion. - Visitor of Southwest office Good Compensation:

Pilots are paid 10% above industry average -> Flew 85 hrs per month(Southwest) vs 80.2 hrs (Industry)



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Q ti


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