Case Summaries – Southwest Airlines in Baltimore
Southwest airline overviews
Southwest airline was one of the six largest airlines in the US at the time of this case written.
Unlike other airlines, Southwest focused on the most inexpensive fares and most frequent flights
between urban markets separated by 500 miles or less. This practice means Southwest aircraft
spent more time on the ground, which is costly and labor intensive. Southwest implemented five
strategies to offset the cost: 1. Turn aircraft around quickly at the gate; 2. Use only one type of
aircraft Boeing 737; 3. Use less-congested airports; 4. Offer limited services; 5. Offer only one
seat class. One most important strategy, turning aircraft around quickly at the gate requires high
coordination among 12 distinct functional groups. Therefore, Southwest invested to hire more
supervisors and created the family like working environment.
Southwest’s strategy was proven successful. Between 1972 and 2001, its stock outperformed all
other US airlines. It also won “Triple Crown” for entire year from 1992 to 1996. However,
Southwest’s performance slipped over time since then.
Southwest Baltimore station overviews
Southwest started operating in the Baltimore station since 1993 and grew into one of the eight
