Organizational Change In Southwest Airlines

1363 Words6 Pages
Southwest Airlines is one of the top leading airline companies. It is also one of the top 10 fortune 500 admired companies according to Forbes Magazine. (Makovsky, 2014). Southwest which was founded in 1971 by Rollin King and Herb Kelleher. They offered very basic services to their customers and employees. There were no incentives, frills and offered a very basic structure. Their flights only flew out of Love Field in Dallas and to Houston and San Antonio. (Srinivasan, 2014). Organizational Change In the 80’s, the new CEO, Lamar Muse, of Southwest changed its perspective and did an overhaul on their culture. He first adopted the “love” theme and actually spelled it “Luv.” In addition, he believed in treating their employees as their top priority. They wanted to value their employees and treat them as important assets. (Mudili, 2011). The idea is that the employees will encompass the company’s value and mission statement, thus, treating the customers with the same perspective. To implement the “Luv” theme, everything was named Luv. Drinks were called Luv options on…show more content…
When booking lights, passengers had a choice to select between the two fares. They can either pay $26 or $13 for their ticket. Both fares offered the same seats. The difference is that with the $26 fare, customers were offered gifts such as ice buckets or whiskey. They found this option to be very effective as majority of customers selected the $26 fare over the $13 fare. Southwest acquired an additional airline allowing them to offer more departure times. This allowed passengers who missed their flight, to get onto the next one. (Mudili, 2011). By letting passengers who missed their flight to get onto the next flight, this helped retain the passengers instead if turning them away. It is also providing good customer service by working with the customer and not against
Open Document