Southwest Airlines Operations - A Strategic Perspective:
Background: Southwest Airlines is the world's largest, america west airline tickets, airline measured by the number of passengers transported annually in the United States. Also known as the "offer airlines compared to its main competitors in the field. Rollin King and Herb Kelleher based Southwest Airlines June 18, 1971. The first flights from Dallas Love Field in Houston and San Antonio, short hops, with affordable services and a simple fee structure. Airlines started a simple strategy: "If you get passengers to their destination if they, america west airline tickets, want to reach in time, and as cheaply as possible and make damn sure that they have a good time to do this, people will leave the airline.
"Such an approach is key to the success of Southwest. Currently, Southwest serves 60 cities (31 countries) and 71 million passengers (in 2004) and total income from U.S. $ 6,500 million, america west airline tickets, . Southwest is a publicly traded symbol" LUV "is NYSE.Facts: * The first major airline to fly the machine type (Boeing 737) * the first serious offers air tickets to travel the entire system, which includes a loyalty program, based on the number of trips and, america west airline tickets, the number of miles .
* first airline offer profit-sharing scheme to their employees (founded 1973) .* The first major airline to develop, america west airline tickets, Web sites and online . In 2001, approximately 40 percent ($ 2,100,000,000) passenger revenue online www.southwest.com hotels. Southwest afford the cost of service through the Internet is about $ 1, compared to the cost of booking through a travel agency from $ 6 to $ 8.Key competitive advantages: * Low running costs * High efficiency award-winning customer services of human resources * / cultureOperations analysis - competitive dimensions: Southwest manifestly clear advantage over other airlines in the sector and strategies for effective and efficient functioning, which is the main pillar of the company's overall strategy.
Below are a few points competition which will be discussed in this paper.1.Operational Costs and Efficiency2.Customer Service3. Employee / Labor Relations4.Technology1. EfficiencyAfter operational and all the general aviation sector is in ruins. But how to maintain the profitability of Southwest Airlines? Southwest Airlines has the lowest costs and the strongest balance sheet of the sector, the President of Kelleher.'s two largest airlines operating costs - the cost of the work work (40%) , then the price of fuel (about 18%).
Some of the other ways Southwest is able to maintain low-cost measures - to fly the route from place to place, to choose the secondary (smaller) airports, aircraft, consistent with the implement and maintain high air promotion of the use of e-ticket costs CostsThe etc.Labor actually work usually about 37% of their operating costs. perhaps the most critical factor is the successful business model for budget airlines is to achieve a much higher labor productivity. A recent case study BA, Southwest Airlines has the most "highly organized", america west airline tickets, an American airline (about 81% of its employees who are union members ), and their reward is equal to or above average compared to the U.
S. aerospace industry.'s labor cost advantage is a big part of the flexible rules of work, which allows for the accession of the use of nearly all employees (except if permitted by the licensing and safety). This Mutual of use and long-term role in culture of cooperation two groups from working in lower unit labor costs. Thurs southeast and in the 4th quarter 2000, the total contribution to the cost-free work place mile (ASM), more than 25% lower than in the United and American, and 58%, unless Airways.
Carriers southwestern United States and has one huge advantage costly for companies Thurs network, just because to produce the labor productivity growth per employee. In this study, 2001 workers' productivity south was more than 45% higher than in the U.S. and Britain, although the length of the flight and engine could mean a larger enterprise network. So, their relentless pursuit of lower labor costs, Southwest can be a positive impact on their income to expenses revenues.Fuel CostsFuel is the second largest expense after labor, the airlines Original from: Southwest Airlines Operations - A Strategic Perspective
"Such an approach is key to the success of Southwest. Currently, Southwest serves 60 cities (31 countries) and 71 million passengers (in 2004) and total income from U.S. $ 6,500 million, america west airline tickets, . Southwest is a publicly traded symbol" LUV "is NYSE.Facts: * The first major airline to fly the machine type (Boeing 737) * the first serious offers air tickets to travel the entire system, which includes a loyalty program, based on the number of trips and, america west airline tickets, the number of miles .
* first airline offer profit-sharing scheme to their employees (founded 1973) .* The first major airline to develop, america west airline tickets, Web sites and online . In 2001, approximately 40 percent ($ 2,100,000,000) passenger revenue online www.southwest.com hotels. Southwest afford the cost of service through the Internet is about $ 1, compared to the cost of booking through a travel agency from $ 6 to $ 8.Key competitive advantages: * Low running costs * High efficiency award-winning customer services of human resources * / cultureOperations analysis - competitive dimensions: Southwest manifestly clear advantage over other airlines in the sector and strategies for effective and efficient functioning, which is the main pillar of the company's overall strategy.
Below are a few points competition which will be discussed in this paper.1.Operational Costs and Efficiency2.Customer Service3. Employee / Labor Relations4.Technology1. EfficiencyAfter operational and all the general aviation sector is in ruins. But how to maintain the profitability of Southwest Airlines? Southwest Airlines has the lowest costs and the strongest balance sheet of the sector, the President of Kelleher.'s two largest airlines operating costs - the cost of the work work (40%) , then the price of fuel (about 18%).
Some of the other ways Southwest is able to maintain low-cost measures - to fly the route from place to place, to choose the secondary (smaller) airports, aircraft, consistent with the implement and maintain high air promotion of the use of e-ticket costs CostsThe etc.Labor actually work usually about 37% of their operating costs. perhaps the most critical factor is the successful business model for budget airlines is to achieve a much higher labor productivity. A recent case study BA, Southwest Airlines has the most "highly organized", america west airline tickets, an American airline (about 81% of its employees who are union members ), and their reward is equal to or above average compared to the U.
S. aerospace industry.'s labor cost advantage is a big part of the flexible rules of work, which allows for the accession of the use of nearly all employees (except if permitted by the licensing and safety). This Mutual of use and long-term role in culture of cooperation two groups from working in lower unit labor costs. Thurs southeast and in the 4th quarter 2000, the total contribution to the cost-free work place mile (ASM), more than 25% lower than in the United and American, and 58%, unless Airways.
Carriers southwestern United States and has one huge advantage costly for companies Thurs network, just because to produce the labor productivity growth per employee. In this study, 2001 workers' productivity south was more than 45% higher than in the U.S. and Britain, although the length of the flight and engine could mean a larger enterprise network. So, their relentless pursuit of lower labor costs, Southwest can be a positive impact on their income to expenses revenues.Fuel CostsFuel is the second largest expense after labor, the airlines Original from: Southwest Airlines Operations - A Strategic Perspective
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