Southwest Airlines Company 2004 Term Paper

Pages: 20 (6479 words)  ·  Bibliography Sources: ≈ 3  ·  File: .docx  ·  Topic: Transportation

Southwest airline is one of the major airlines operating these days. Starting from the scratch Rollin King and Herb Kelleher joined hands to build an airline company which would be a totally different from then airlines. They started the company with one simple thing in mind which was to get the customers to their desired places on time and at the lowest possible fare. They had one vision in mind i.e. To provide customers with suitable and affordable ticket prices with satisfactory air travel. On February 20, 1968 King and Kelleher created the infamous Southwest Airlines. The Texas Aeronautical Commission gave them the permission to fly between three cities in 1968. From 1968 the company has never stopped expanding and is expected to grow further more in the recent years. It dominated the market of airlines when it was created due to the strategy of lower costs opted by them. This lowering of fares has been a vital factor in the success of Southwest Airlines. With the help of great achievements devotion and expansion the company has been able to grab the Triple Crown. It is the first ever airline which was able to grab the honor. Not even in the department of travel has it achieved but it has also excelled in the department of finances.

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Southwest Airlines always believed in the frequent flying program to give more concern to the number of trips taken. The firm at first focused on a single state to avoid competition by other companies. This paved a way for the company to expand. By the mid 1990s the air traffic level had increased by huge numbers and thus this promoted other airlines to participate. The firms existing vision statement is to provide the customers with fairly less fares and thus give an opportunity to all common people to travel by air. The main aim of the Southwest airlines is to maximize its returns and to increase the profit by a large margin. Southwest airlines believe in the security of each and every employee working in their firm and thus they provide the employee with a safe environment to work. The overall objective of the airlines is to provide people with safe and sound journey with fairly less fares so that the ordinary people can afford traveling by air.

Term Paper on Southwest Airlines Company 2004 Assignment

Southwest airlines have been quite successful in implementing its policies, rules and strategies. Southwest airlines don't believe in expanding at an increasing rate in order to avoid any future mishaps. It has always considered its cost containment policy as a major factor for its success. The employees in Southwest airlines are treated as customers and are provided with perks and benefits. It believes in devotion to its employees. It has believed in expanding only when an opportunity arises. For e.g. Southwest airlines would not prefer to run less than 12 flights a day in a particular city. Southwest believes in getting its passengers on the destination on time or before time. It has always wanted to fly a huge number of passengers on a high frequency. It believes in reducing the time in reaching a destination. 'It has always avoided hub and spoke operations thus fly their customers directly from city to city.' It has from the beginning avoided large crowded airports so that the time loss is reduced. After the imposition of ticket tax 1997 the company introduced non-stop trips around the world so that the tax imposed could be decreased. Southwest airlines always believed in reducing travel time so that the consumers reach at their desired destination safe and quick. In order to enhance the policy of reducing travel time the Southwest Airlines uses plastic cards as boarding passes and doesn't assign any specific seat to the customer. This therefore reduces the time in which a customer boards the plane. It decreases the total turnaround time on the ground. All these policies improve travel timing for the company and for the customers. The Southwest airlines have adhered itself to one kind of jet i.e. Boeing 737. Thus all the employees learn and get experience in handling the specific type. This helps in handling a situation of emergency. The costs on which the airline operates are fairly less than their rivals. The overall strategy of the Southwest Airlines is aimed for specific purposes like maximizing profitability.

A mission statement can look easy but it should be in touch with the base of the organization with a specific statement of function. Words should be selected for sense and clearness - not technical language. A mission statement is a logical vantage point from which to look down the road. (Thomas Strickland, p.4, 28)

Southwest Airlines has given power to its employees with a Mission Statement that references "a dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride and company spirit." Whereas other airlines endured financially after the fanatic attacks of September 11, 2001, one could praise the Mission Statement of Southwest Airlines to assist continue their workers alert.

Vision statement is a report that focuses on future of how the association should give the impression and how it will effectively accomplish its goals.

It describes a practical, reliable, and striking future for the organization.

A vision allows leaders to inspire, attract, align, and energize their followers - to empower them by encouraging them to become a part of a common enterprise dedicated to achieving the vision" Gil Hickman, "Leading


Southwest Airlines' vision is to develop the places both domestic and overseas by being the major and most advantageous airline company to attain both short and long-haul carrier proficiently and with little cost. It also has to be an airline service that consists of the most creative employees to assure the most excellent flight achievable for each and every traveler.

Southwest Airlines is a corporation that is meant for each and every person who needs to acquire from point a to point B. By flying. Their aim and idea is to fly safe and sound, with high rate of recurrence, less-expensive flights that would be able to get travelers to their specified point on time and more nearer to their places. They fly in 58 towns and 30 countries and are the world's biggest short-haul transporter and they make certain that it is run powerfully and in an inexpensive manner. Their tools are up-to-date for example our check-ins procedure is quick. Motivating to develop and rise in a rebellious manner is key, and being economically established by maintaining quality far above the ground and charge low. Their brilliance is organizing cost by our hasty twenty-minute gate turnaround, a continuous flight through our airplanes, and an extra creative employee which maintain above our opponent. They keep our workers similar to clients, family unit and encourage and pay compensation to them for performing the work very nicely. We persist to be in the Fortune Magazine's most well-liked corporations (2nd in 2002) 100 most excellent corporations to work for. Since 1972 we have grades first in cash Magazines featured in "The 30 Best Stocks." In their group of peoples they create hand-outs to charitable trust to organizations and people in time of necessity.

The present vision and mission statement is quite beneficial for the company but in order to further improve the statement I think that they should provide customers with more enhanced and better ways to travel with comfort.

With the success of the company many opportunities arise for the company to grow in size and to maximize the profits. Southwest airlines only operates in the inter-city air travel. To increase its profits it can expand into overseas and also expand their service to other cities of the U.S.A. Many of the airlines which stood in the competition of Southwest but got bankrupted provided a way for the Southwest to hire already experienced and trained employees. E-commercing proves to be a vital factor in keeping the airlines standards. Southwest airlines were the first airline to launch its services on the internet. 50% of the bookings Southwest airlines get are from the online bookings. This internet marketing reduces the cost of the agent in between who charges his commission. Thus e-commerce is an important external opportunity for the firm to enhance its profitability.

Southwest airline was one of the airline companies which managed the blow of the incident of 9/11. Since then the airline industry has been affected and many new competitors in the field have emerged and have given competition to Southwest airlines. Many of the new entrants have adopted the same policy as that of Southwest. The policy includes low fares and short haul routes. Southwest airlines are on a detriment as the company doesn't prefer bigger airports, so the other competitors who have emerged have access to a variety of cities and bigger airports. Jet Blue is an emerging competitor and threat to the Southwest airlines due to its adoption of the same policies. Many other companies are… [END OF PREVIEW] . . . READ MORE

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How to Cite "Southwest Airlines Company 2004" Term Paper in a Bibliography:

APA Style

Southwest Airlines Company 2004.  (2008, February 14).  Retrieved July 3, 2020, from

MLA Format

"Southwest Airlines Company 2004."  14 February 2008.  Web.  3 July 2020. <>.

Chicago Style

"Southwest Airlines Company 2004."  February 14, 2008.  Accessed July 3, 2020.