Grab your bag, it’s on! Team Members, G.V.V.S.Chandra Sekhar, Ashok Kumar Padala, Abhishek Sarkar, Nandini Kumari, Prateek Jain.

Southwest Airlines

Started as a intra-state operator in Texas. Budget airline philosophy, survived a severe

price-war. Operation Strategy is Using only single model

aircraft’s- Boeing 737(Fuel efficient). Low cost, Low fares, Frequent flights & on-

time departures. Policy “ Employee First, Customer Second

and Stakeholder Last.”

Competition

United, USAir & Continental decides to implement strategies modeled from Southwest.

45% of United’s revenue from California Corridor.

United shares- 38% in 1991 to 30% in 1993. Southwest shares- 26% to 45%. Imitators-New airlines(Kiwi, Reno air) and also United, Continental.

Human Resource

Rhodes, former marketing executive joined southwest in 1989 to transform HR department.

Southwest competitive advantage rested with its people and how they are managed. To find major threats, opportunities and

assessment of Strengths and weakness. Whether getting advantage from its own people . Whether the competition could imitate

Southwest’s HR practices.

Background

• Inception of company

• Wright’s amendment

• Anger- A great motivation

• Marketing strategy

• Seizing opportunity

The current situation(1995)

• Same strategy and operation style.• Flying fuel-efficient 737s-only aircraft it flies• Competing not with airlines but surface transportation.• Average passenger fare 1993-$60 for a trip of 500 miles 1984-$49 for a trip of 436 miles• Low fares strategy applied to increase passenger volume• Two fares on a route- regular coach fare and off peak

fare• No interline connection with other airlines reservation

systems.

Contd.

How simplified it’s operations?

Frequent Flight Club.

“Greatest value, as it gives free travel faster, for much less money, without giving up great service.”

Been profitable for over 21 years.