Southwest Airlines : A Low Cost Airline Operating Essay

Southwest Airlines : A Low Cost Airline Operating Essay

Length: 1203 words (3.4 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

Southwest Airlines was established in 1967 as a low-cost airline operating just in the state of Texas. Today, Southwest Airlines is the largest domestic carrier in the United States employing more than 46,000 employees and operating 3,600 flights per day (Southwest, 2014). Southwest is also the largest operator of Boeing 737 aircraft in the world with over 680 in service operating an average of six flights per day each (Southwest, 2014). Under its original name, Air Southwest Company, Southwest Airlines was founded by a group of Texas investors that put together $560,000, to form a small airline to serve the cities of Dallas, Houston, and San Antonio. By the summer of 1971, operating under Southwest Air, the airline owned three aircraft and was operating hourly flights between Dallas and Houston, later completing the “triangle route” to San Antonio (Southwest, 2014). Southwest Airlines did not produce its first profitable year until 1976 when it serviced cargo between the cities it served. The airline later expanded services to the Rio Grande Valley, Corpus Christi, Lubbock, Midland-Odessa, El Paso and Austin. It wasn’t until 1979 that Southwest flew outside the state of Texas serving New Orleans. In 1980, Southwest started service to Oklahoma City, Tulsa, and Albuquerque. Over the years Southwest would expand to several cities servicing 103 destinations in 41 states, the District of Columbia, the Commonwealth of Puerto Rico encompassing approximately 3,600 daily flights (Southwest, 2014).
Southwest maintains high profit earnings despite being heavily unionized. Using high level aircraft and employee productivity with minimizing cost by reducing aircraft turnaround time at the gate, Southwest was able to generate an op...

... middle of paper ...

...14). Having an entire airline’s fleet composed entirely of Boeing manufactured airframes only made business sense to partner with this aviation giant in an effort to streamline maintenance processes. Airplane Health Management uses real-time airplane data to provide enhanced fault forwarding, troubleshooting, and historical maintenance information. This powerful maintenance decision support solution delivers valuable information when and where it 's needed, by converting data into useful information to support "fix-or-fly" operations decisions that can make the difference between profit and loss (Rice, 2014). With access to real-time advanced diagnostics and prognostics to drive predictive maintenance, operators can now identify issues before they become problems – all resulting in reduced schedule interruptions and increased maintenance and operational efficiency.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Southwest Airlines And The Union Strike Essay

- Labor Relations This is an area where Southwest Airlines needs to focus more of their attention. Currently, Southwest Airlines, is approximately 85% unionized and the airline is trying to negotiate seven contracts concurrently. The ramp, operations and cargo unions have been working without a contract since 2011. The pilots and mechanics have not had a contract since 2012 and the flight attendants contract expired in 2013 (Leff, 2015). In a statement made by the president of Southwest Airlines’ Pilots Association, union representatives must do something while ongoing poor decisions are being made by management that are affecting our airlines passengers (Schlangenstein, 2016)....   [tags: Southwest Airlines, Low-cost carrier, Airline]

Better Essays
1468 words (4.2 pages)

Southwest Airlines : A Winning Strategy Essay

- 1. Is there anything that you find particularly impressive about Southwest Airlines. There are few things that are impressive about Southwest Airlines first one is how they treat the employees. For Southwest Airlines employees are first and customers are second. If the employees are treated well that will bring in happy customers. Next is that Southwest is not only with their low prices but is able to create a competitive advantage by offering a fun and humorous experience when flying. Finally another impressive fact is when Herb Kelleher’s retire from CEO position yet remained a Southwest employee till July 2014....   [tags: Southwest Airlines, Low-cost carrier, Airline]

Better Essays
859 words (2.5 pages)

Southwest Airlines : The World 's Largest Low Cost Carrier Essay

- In 1971 Southwest Airlines started their operations with a vision of being a low cost/low fare carrier for passengers traveling between San Antonio, Dallas and Houston. After early legal battles and struggles gaining market share, their fighting spirit, integrity and will to succeed paid off. Over the course of the next 40+ years, Southwest has become the world’s largest low-cost carrier, while carrying more domestic passengers that any other U.S. airline (“Southwest Corporate,” 2015). Their culture, values and operating practices are what have driven this company to its current success and will continue to do so for the foreseeable future....   [tags: Airline, Southwest Airlines, AirTran Airways]

Better Essays
1512 words (4.3 pages)

The Archetypical Low-Cost Air Carrier: Southwest Airlines Essay

- Abstract The seventh largest major domestic airline in the United States (US), Southwest Airlines, is commonly known or referred to as a low-cost carrier. Southwest Airlines is the only major airline that provides short-haul, point-to-point service in the United States. In fact it was the first airline of its type ever started; it has become the archetypical low-cost airline. The idea has proven itself so well, that other start-up airlines have based their company strategies upon the basics of Southwest....   [tags: Aviation Southwest Airlines Flying Essays]

Free Essays
3920 words (11.2 pages)

Essay about Southwest Airlines And The Deregulation Of The Airline Industry

- Southwest Airlines got started as Air Southwest in 1967 by a couple businessmen looking for a better way to fly. The new airline grounded for its first three years due a lawsuit filed by some of the prominent air carriers during that time. After the lawsuit was over the airline was ready so they changed their name to Southwest Airlines and took to the air. Southwest Airlines was founded on several principles of business; “If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline”....   [tags: Southwest Airlines, Airline, Low-cost carrier]

Better Essays
1069 words (3.1 pages)

Essay on Southwest Airlines : The Biggest United States Airlines

- 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. Southwest Airlines have been able to survive even when faced with stiff competition because of its low cost approach....   [tags: Southwest Airlines, Airline, Low-cost carrier]

Better Essays
1400 words (4 pages)

Essay Environmental Factors Affecting Southwest Airlines

- 1) What macro-environmental factors external to the company should Southwest Airlines be most concerned about. How do these factors affect Southwest Airlines. Explain. Southwest Airlines is an airline carrier that operates within the American domestic market. It has been the largest domestic Airline, according to the number of domestic passengers and flights. One of the most important macro- environmental factor, which Southwest Airline should be concerned about is demographic factor. As we know Southwest airline has been a domestic carrier through U.S....   [tags: Airline, Southwest Airlines, Low-cost carrier]

Better Essays
1448 words (4.1 pages)

Case Study : Building Business Agility At Southwest Airlines Essay

- Strategic use of information systems is one of the most important issues facing firms in today’s business environment. Information systems (IS) can either enable or hinder business growth, so organizations must learn to use IS advantageously. The case study “Building Business Agility at Southwest Airlines” by Ross and Beath (2007) demonstrates how a firm can drive business success through a revolutionary change in its use of IS. In the following case analysis, I will introduce and evaluate Southwest Airlines, describe and analyze its approach to IS as outlined in “Building Business Agility at Southwest Airlines,” and provide future recommendations for the company....   [tags: Southwest Airlines, Airline, Low-cost carrier]

Better Essays
739 words (2.1 pages)

Case Study : Southwest Airlines Co Essay

- Although Southwest Airlines Co. takes only the sixth place in the ranking of Forbes magazine[1], SWA is the world 's largest low-cost carrier, has become the biggest domestic airline in the United States, by number of travelers carried. More than 70 million passengers fly SWA ewery year to over 60 destinations around the continental United States. Passengers have found that Southwest 's affordable tickets create almost a new type of transportation, more in competition with the automobile than other airlines....   [tags: Southwest Airlines, Airline, Low-cost carrier]

Better Essays
819 words (2.3 pages)

Southwest Airlines Operational Improvements Of The Airline Industry Essay

- Southwest Airlines Operational Improvements The airline industry has grown rapidly over the decades. In the most recent decade revenue has doubled. Most growth seen in the industry has been in the low-cost carriers. With all this growth, why has profit margins been so thin. There are a series of trends that suggest most of the profit is eaten up by overhead such as the airports, manufacturers, salaries, and service providers which all remain profitable while the carriers struggle. There is another theory that the continual increase in regulation has been the issue....   [tags: Low-cost carrier, Airline, Southwest Airlines]

Better Essays
738 words (2.1 pages)