Southwest Airlines

Southwest is a very different airline than most and this gave them a distinct competitive advantage in the industry. Ever since Southwest’s first flight on June 18th, 1971 Southwest has focused on three values that they believed would make their airline a better choice for flyers. The first being the way they treated their customers and employees, they wanted it to be a fun environment for everyone on board. Secondly they had a different cost structure than other airlines in the industry. Southwest focused on having the lowest price airfare and making the pricing competitive with automobile transportation. Third Southwest offered different practices than those of their competitors. Although not always thought of as a traditional practice this made Southwest the airline they are today and gave them a strong competitive advantage over their competitors.

Southwest believed that all of their daily operations needed to be done with an “emphasis on fun for employees and travelers.” They would conduct in flight contests; on holidays they would dress up and give away prizes. These are just two of the many activities and events they did to make the airline a fun and memorable airline to fly. This made the selection of employees an extremely important process, which is why Southwest made sure to hire employees who could actively be a part of the Southwest family. In 1990 Southwest started a group called the Culture Committee. The goal of this committee was to “help create the Southwest Spirit and Culture where needed; to enrich it and make it better where it already exists; and to liven it up in places where it might be ‘floundering.’ In short, this group’s goal is to do WHATEVER IT TAKES to create, enhance, and enrich the special Southwest Spirit and Culture that has made this such a wonderful Company/Family.” As the airline grew so did the importance of the Culture Committee. The former CEO of Southwest, Herb Kelleher was a huge asset to the airline. He...