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Success of Southwest Airlines

In: Business and Management

Submitted By justis
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SUCCESS SOUTHWEST AIRLINES

So, to start with, the company was founded in 16th of March, 1967 Dallas by Herb Kelleher and Rollin King. It has a subsidiary company which is AirTran Airways. Southwest Airlines flies to 72 destinations in the United States. Key people of the company are Herb Kelleher (Co-founder), Rollin King (Co-founder) and Gary C. Kelly (President, CEO & Chairman). And total assets in 2010 were more than 15 billion dollars.
In simple words, more than 44 years ago, Rollin King and Herb Kelleher got together and decided to start a different kind of airline. They began with one simple notion: If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline. And you know what? They were right.

[pic]
As we see, Southwest Airlines is among 3 biggest domestic United States airlines. Their biggest competitors are American Airlines and Delta Airlines. Also you can see AirTran Airways company which is now a subsidiary of Southwest Airlines.

So now we have a question – why the airlines are so successful? Here I’d like to point two sides – financial and attitude.
Financial reasons which help the company to save money and as a result to gain more profit are these:
One Plane Fits All
Southwest flies just one plane type, the Boeing 737 series. That saves Southwest millions in maintenance costs—spare-parts inventories, mechanic training and other nuts-and-bolts airline issues. It also gives the airline unique flexibility to move its 565 aircraft throughout the route network without costly disruptions and reconfigurations.
Point-to-Point Flying
Network carriers rely on a hub-and-spoke system but not Southwest. Most of its flying is nonstop between two points. That minimizes the time that planes sit on the ground at…...

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