Case Study: Southwest Airlines

Jayme Boone

MT435 Operations Management

Case Study Southwest Airlines

Kaplan University

December 22, 2009

Introduction

Southwest Airlines is a well know company that has been around since 1971. They started out as a small Texas airline and have grown to become one of the largest airlines in the United States (Schroeder 433).

(01) To what do you attribute the success of Southwest Airlines? Please explain and substantiate your answer(s).

Southwest has become very successful over the years because they have done what it takes to make it affordable for the customers and to keep them happy in every way possible. Southwest used great advertising techniques to let the customers know that they would do whatever it took for the customers to be able to afford to fly. They started offering half price fares and then offered a free bottle of premium liquor to customers that were willing to pay the full fare (Shroeder 434).

(02) How significant is the 10 to 15 minutes turn-around time of Southwest’s aircraft in terms of savings in investment and utilization of aircraft compared to the competitors? Please explain and substantiate your answer(s).

Southwest used the 10 to 15 minute turn-around time to jump ahead of their competitors. This definitely worked and they are now “known for their quick turns” (Schroeder 435). This is a great strategy because if they spend less time on the ground they are able to get more flights in throughout the day which will bring in a lot more profit. This strategy not only works for the company but also the customer. It gives the customers more options and allows them to have a more flexible schedule.

(03) What challenges is Southwest facing in the future and how should they meet those challenges? Please explain and substantiate your answer(s).

Southwest has been facing many issues since the 21st century. The rough economy, fear of terrorists, as well as high fuel costs has played a huge toll on all airlines. (Schroeder 439)....