Cuong Manh Nguyen
Operations Management
Prof. Keith Poirior
Southwest Airlines Case
A. Some of the ways in which Southwest is different than other commercial airlines
Southwest Airlines provides short-haul, high frequency, and low-cost service. Southwest
has succeeded by differentiating itself through service, operations, cost control, marketing,
its people, and the corporate culture. Firstly, Southwest creates games on board the aircraft
and contests on ground when a flight was delayed. Those activities make customers more
comfortable. Southwest also encourages good relations between employees and
passengers. Secondly, Southwests operation differed other major U.S airlines such as
Southwest did all of its own ticketing, Southwest did not operates hub and spoke route
system, Southwest generally flew into uncongested airports of small cities, Southwest did
not transfer baggage directly to other airlines, only drink and snack were served on board,
Southwest flew only Boeing 737 jets. Thirdly, Southwest controls cost through each
person, everybody needs to take apart. Fourthly, Southwest marketing emphasize low
price, convenience, and service. Fifthly, at Southwest, the community is the most
important. Without the success of community, you cannot have personal success.
B.Which of the new routes would your recommend: Detroit *€“ Phoenix, Enter into
Dayton, or Enter into Baltimore.
Based on analysis above, I recommend Southwest enter into Dayton due to some reasons.
Firstly, Dayton is a potential market with 970,000 population as well as it contributes
growth goal in Chicago. Moreover, it is also short haul flight (an advantage of Southwest)
and airport gate and landing fee is low ($2.00 per passenger). Although, this plan requires
40 employees for ground crew and $1 million cost, Southwest has strong financial
performance (net income 1992: $103,559). Thus, Southwest could enter into Dayton route,
a potential market.