Hello to everyone, my chosen topic of today is again something related to travelling, this time I’m going to talk about the “low cost” united states airline, Southwest, wich I find very interesting because they operate in a very simple but intelligent way to operate, in order to save money and optimize time by the standardization of their processes positioned at the top of the main united states airlines successfully.
Southwest Airlines is a major U.S. airline and the world’s largest low-cost carrier, headquartered in Dallas Texas, Founded in March 16, 1967 and starting operations in June 18, 1971. The airline has 44,831 employees as of December 2013 and operates more than 3,400 flights per day. Southwest Airlines began operations with a single aircraft type: Boeing 737. This enabled the drivers and maintenance personnel have greater ease in their work. Southwest is the largest operator of the 737 worldwide with over 550 in service, each operating an average of six flights per day. They began with one simple notion: 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. And you know what? They were right.
Southwest has been a major inspiration to other low-cost carriers, and its business model has been repeated many times around the world. The competitive strategy combines high level of employee and aircraft productivity with low unit costs by reducing aircraft turn around time particularly at the gate. Europe’s EasyJet and Ryanair are two of the best known airlines to follow Southwest’s business strategy in that continent.
Simplicity is the style that defines Southwest Airlines, they provides the “Keep it simple” business model:
– National Fligths only and non-stop to save fuel
-Sparse costumer amenities
– No seating class distinctions
– No numbered seats
– No choices on type of aircraft (only one)
-Simplest pircing structure
-Frequent flier program
-Peaunuts, not meals, to save money and keep the low-prices
-Good schedules for destinatios served
-Best on time performance
-Safest airline worldwide
-Management training only one type of aircraft
-Employees appear to be happy
-Highest customer ratings
-Most cnsistently profitable
As you can see, this business model can be applied for sure, Obviously they succeed while others fail, they ensure stability by provinding their well done skills and strategies, they even has their own plane parts stock or warehouse, so they dont waste time looking for pieces they need when is required, so I think they optimize time and costs while they provide a service costumer quality.
Here is a video about the company that you migth like.