Southwest Airlines entered the airline industry in 1971 with its focus on low fare, frequent flights, on-time arrival, top safety records, and how bags fly free (Kotler and Keller, 2012). Southwest business model is based on streamlining its operations, which results in low fare and satisfied consumers. The airline takes several steps to save money and passes the savings to customers through low fares. It has a unique boarding process; it usually serves secondary cities with smaller airports that have lower gate fees and less congestion that helps the airline to provide low fares. Another cost saving strategy is to operate Boeing 727s for all flights that simplifies the training process for the staffs, pilot and transfer mechanics quickly. Lastly, the biggest cost saving techniques and competitive advantage is its program to hedge fuel prices by purchasing options years in advance (Kotler and Keller, 2012). The Southwest airline has gained a competitive edge over the market by providing low fare to the customers but with that it has also gained customers hearts by proving the best service. The Fortune magazine of United States ranked the airline as the most admired airline since 1997, the fifth-most admired cooperation in 2007 (Kotler and Keller, 2012). Moreover, consulting group Temkin Group said that a study of 10,000 U.S. consumers put Southwest Airlines at the top among airlines in a ranking of best customer experience (Mexon, 2014). However, there were many other airlines who tried to copy the strategies of Southwest airline but they failed to copy the customer service provide by Southwest airline. Southwest spokeswoman Linda Rutherford stated “The big airlines could follow their no-frills rivals by serving secondary airports, switching to just one type of aircraft, but there are intangibles that they can’t copy. They can’t copy the corporate culture, people, the working environment.” (Elliot, 2002). US Airways, United and Continental all copied Southwest airline by creating low-cost airline spinoffs. All of them failed (Elliot, 2002).

The Southwest airline is going successful over the years. The financial results also shine: the company has been profitable for 37 straight years (Kotler & Keller, 2012). But still the airline has some risks in few areas. The competitors copying Southwest’s low fares and point-to-point route structure. A southwest airline is at constant price wars with its competitors. In such price wars, sometimes the Southwest is forced to keep the prices of tickets really low. Thus in this case too the airline runs a risk of eventually earning low revenue. Secondly, increased fuel cost could be a risk for Southwest airline as it is for other airlines. Despite of all the risks Southwest airline is being loved by the customers and the employees. Moreover, when the economy time hit, I think there will always be the market for “low-priced” leader. Additionally, by giving exceptional customer service, Southwest airline has made strong customer loyalty relations. Therefore, the company can continue to thrive as a low-cost airline even when the economic times hit.

ReferencesElliot, C. (2002). A Southwest solution? Retrieved from http://elliott.org/commentary/a-southwest-solution/

Kotler, P. & Keller, K. L. (2012). Marketing Management. (14th ed.). Upper Saddle River, NJ: Pearson Education.

Maxon, T. (2014). Fitch revises Southwest airlines outlook to ‘positive’. The Dallas Morning News. Retrieved from http://aviationblog.dallasnews.com/2014/09/fitch-revises-southwest-airlines-outlook-to-positive.html/