One possibility to be discussed is the idea that the success of the Southwest airline company will be directly correlated to the satisfaction of the customers. Economics plays a huge role in the airline industry. For Southwest, the CEO states that they kicked off a “low fare revolution” back forty-five years ago when the company began. It was their goal to make flying affordable and convenient for the average man; flying was no longer going to be just for the elite. According to CEO Gary Kelly when Southwest Airline originated “only 15 percent of Americans had traveled by plane” (The Low-Fare Revolution).
The subject of strategic alliances inside the air transport industry is not a well-researched area. This is due, in part, to the truth that alliances are a nearly new happening in the industry. The 1990s in specific have seen a commotion of alliance activity of all descriptions. At present it is operating more than 2,100 flights per day and carrying over 44 million passengers a year to 50 different cities all over the United States. Southwest is very well known for its best on-time record, best baggage handling and has the pride of getting least customer complaints in the airline industry.
Southwest airlines is now the nation’s largest carrier in terms of originating domestic passengers boarded according to the most recent data available from the U.S transportation. The carrier offers flights to some of the world’s most popular destinations. They also operate the largest fleet of Boeing aircraft in the world to serve 93 destinations in 40 states, the District of Columbia, the Commonwealth of Puerto Rico and five near international countries which are Aruba, Bahamas, Jamaica, Dominican Republic and Mexico (Swamedia, 2015). Another key point to Southwest’s successful operation is that they only employ one type of aircraft, the Boeing 737. By resisting the customary practice of employing numerous types of aircrafts, the carriers can save on operational costs such as training technicians and focus on other customer-driven needs (Slate,
Resources: Southwest Airlines had always managed its resources well including the financial resources. In 2012, Southwest returned $422 million to Shareholders through repurchasing $400 million of common stock (approximately 46 million shares) and distributing $22 million in dividends. It made money every year and earned a Return on Invested Capital (ROIC) of 5.8%. Even in 2008, an awful year for the airline industry it made a profit and earned an ROIC of 4%. By October 2013, Southwest Airlines has a large standardized fleet of 550 of Boeing 737 aircrafts.
Strategic Issue Southwest Airlines has never deviated from its niche: short-haul, high frequency, low-fare service, all delivered with award-winning customer service.1 -- Herbert D. Kelleher, Chairman, President, and CEO Southwest's current strategy is to position itself as a cost leader with a focus strategy. The company's management and employees aim to cost-effectively and reliably fly large number of customers on short, non-stop flights, and to have fun doing it. They are devoted to making flying available to everyone. The company has been successful in implementing this strategy, having experienced strong growth and profitability. Southwest is now the 5th largest carrier in the U.S. in total customers.
The low cost and no frills strategy is make travel affordable at low cost. The company only operates one type of aircraft which is Boeing 737 to help maintenance cost low. Southwest was the first airline to use E-ticketing in this way customer can reserve spot and buy ticket on their web and allow less expense in printing tickets. Medium measured airports which allowed them to produce better time performance and less fuel costs so plane do not have to wait in the line at the runway. The core value of the company of “LUV and fun” makes the company great place to work that gives customer with a great experience.
By increasingly, the airport has become a favorite haunt for Singapore residents, especially families. At Changi Airport, there is immense pride in providing impeccable service and unrivalled capabilities to create exceptiona... ... middle of paper ... ...r than individual capabilities. Customers are our inspiration. The company must understand what customer need so provide their need and connects people in order to enhance their lives from the youngest child to the largest corporation. (Changi Airport Group, 2014) Mission Changi Airport Group mission is to be the world's leading airport company and growing a vibrant air-hub in Singapore thus enhancing the communities we serve worldwide.
The dhow tour operators ensure that all guests are feel welcomed and invited to experience their services and amenities. For them every single customer whether a millionaire or a commoner is the same. And to make you feel at home and create a friendly environment, they offer a red-carpet welcome their guests along with non-alcoholic welcome drink along with cold towels, and Arabic Dates. What else one can demand or expect after receiving such a warm hospitality. The ambiance of the dhow is no different than a five-star restaurant.
The airlines specialized customer response team should be proactive and alert ready to assist and adjust circumstance in order to support customer’s current needs. 4. Best price/best service enacted. If an airline passenger is paying top dollar in order to receive specialized and tailored service, it needs to be available to them in order for the airline to maintain competitive advantage. .
Southwest Airlines is one of the biggest United States airlines which prides itself in its low-cost strategy to attract and keep up more clients. On a given day, Southwest Airlines operates over 3,400 flights. It has a more than of 46,000 employees. To reduce maintenance and training costs, Southwest Airlines use only Boeing 737s. As of today the company operates 647 Boeing 737s, which fly to 93 destinations across the US.