Southwest Airlines Case Study

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Southwest Airlines is one of the nations most successful airline travel companies. The company has implemented many measures to gain a positive public opinion. First of all at the foundation of Southwest Airlines is a fantastic mission statement its mission is “the dedication to provide the highest quality of customer service with a sense of warmth, friendliness, and upbeat business spirit.” By continuing with this mission, Southwest Airlines has achieved a stunning thirty-one years consecutive profitable years and many prestigious awards for the fewest complaints by many administrative organizations including the United States Department of Transportation. Another reason for Southwest Airlines success comes from the company’s leader, the…show more content…
One problem has been the economic recession. Other than business travel, personal and pleasure travel has sharply decreased due to the lack of disposable income on special trips and ventures. Another problem is the increase in jet fuel costs. With rising tensions in oil rich countries and uncertain supplies of fuel, the cost of jet fuel has skyrocketed causing many airlines, including Southwest Airlines, to increase the cost of travel to the customers. Another constant challenge is the rivalry between the airline management and the employees’ labor unions. The employees deserve to have adequate working conditions but some of the unions can adversely affect business operations and cost the company money. Many of Southwest Airlines competitors can also cause problems with increased competition. Other airlines can offer amenities that Southwest Airlines does not offer such as cheap meals, luxury seats, and premium TV programming during the flights to keep business coming back to the competitors. One of Southwest’s biggest problems is the baggage handling process. In 2011, over four hundred thousand bags went missing. The cost of each mishandled bag is roughly one hundred and thirty dollars, which comes to an yearly total of over fifty three million dollars lost per year in…show more content…
Many of the current airplanes in service today are an average of twenty years old. This causes higher fuel consumptions and higher maintenance costs. Southwest Airlines will need to upgrade to newer, larger, more efficient models of aircraft in order to succeed. To better control of the baggage traffic, automated systems have been created for multiple benefits. Some of these benefits include programmed luggage organization, faster boarding and offloading times, and overall happier passengers and customers. Having a new, larger plane would be essential to carry more passengers each trip, thus increasing revenue. As Southwest acquires newer, smaller airlines; they will also be able to cover more areas in which to fly. They also can expand into new markets both in the United States and abroad. Expanding into Europe, Asia, and South America will be essential for continued profit and growth. Deductive reasoning is a rational and reasonable procedure in which a conclusion is constructed on the basis of multiple facts that are normally presumed to be

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