SOUTHWEST AIRLINES Essay Example | Topics and Well Written Essays - 1250 words

SOUTHWEST AIRLINES - Essay ExampleThis in turn guide to a correction in the efforts long-haul pricing structure where at times airlines were pressure to offer prices lower that their costs. The deregulation of the airline industry in 1978 has been a failure and the airlines are more than like public utilities than ordinary business linees (Roberts, 2008). SWA operated out of Texas and was doing much better than the regulated airlines because of fewer regulations in the state.The industry today is full of uncertainties with airlines merger becoming common. The greatest strength of SWA is its superior plus utilization. Its flight agendum structuring is such that its turnaround is 20 minutes. SWA flies its planes 20 to 30 percent more hours than other major airlines. They have fewer employees per aircraft, fly fewer passengers per employee and have more available seat miles per employee (Pfeffer, 2005). They do non use the standard hub-and-spoke model like most carriers moreov er have the a point-to-point street network and is thus able to minimize the domino effect of flight delays thereby maximizing asset utilization (Kearney, 2008).Another major strength is highly motivated workforce. SWA achieved success not from economies of scale but the airline is known for its very productive, very motivated and unionized workforce (Bacon, 2001). They shape up individuality and they encourage leadership. The employees always come first with the company and the customers a respected second (Miles & Mangold, 2005). A failure is original as natural and pardonable at SWA (Bunz & Maes, 1998). They are encouraged to take responsibility for their acts and celebrate mistakes as well as triumphs. The culture of the firm and the dedication to the employees sees the airline through any obstacles and challenges (Singh, 2002).The recent elevated of fuel price has disturbed the airlines industry globally. Eight US airlines have gone out of business in less than a year, one is in bankruptcy and many others are