Operations Management AtSouthwest Airlines : Presented By: Operations Management AtSouthwest Airlines Background : Background In 1967,Rolling King and Herb Kelleher founded Southwest an intrastate airlines.
In 1982, “Just Say When” campaign
In 1987,Frequent flier programme,no. of flights taken.
In 1992,Southwest won the annual Triple Crown Award.
In 1996,SW started selling through Website www.southwest.com Cont…. : Cont…. In 2000,SW placed biggest aircraft order ever,
delivery of 94 Boeing737.
In 2001,sept terrorist attacks,SW managed to post a profit.
In 2002,the worst year ever for the airlines industry ,SW posted its 30th consecutive profit.
In 2003,SWAirlines was the 4th largest US airlines in terms of domestic customers carried. Southwest’s Business Model : Southwest’s Business Model Providing safe
Short duration air service
Lowest possible fair
Point to Point
Blanketing stratgy Key operation parameters of sw : Key operation parameters of sw Passenger Load factor-
is the percentage of
a plane filled with paying
Revenue passenger miles-
One paying passenger flown
one line Source:www.southwest.com Cont…… : Cont…… Aircraft Utilization-in hours and minutes in a day a plane
is used Contd……. : Contd……. In2002,Sluggish
High energy prices
Tension in Gulf spelled SW’s Top Ten Airport-Daily Departure : SW’s Top Ten Airport-Daily Departure Southwest avoided congested airport.
High employee productivity.
Reliable on time performance. SW:Anatomy of a 15-minute Turnaround : SW:Anatomy of a 15-minute Turnaround 7:55 Ground crew chat around gate position 8:08 Boarding call ,baggage loading, refueling complete 8:03:30 Ground crew move to their vehicles 8:07 Passenger off plane 8:04 crew moves towards gate 8:06:30 Baggage unloaded, refueling 8:15 Jet way retracts 8:10 Boarding complete. ground crew leaves 8:15:30 Pushback from backs 8:18 Pushback disengages plane leaves for runway How SW strategy is Implemented : How SW strategy is Implemented Passenger related departure Very low ticket prices No site assignments No baggage transfers No connection with other airlines No meals Short hual,point to point travel Limited Passenger service High aircraft utilizatin Activities : Activities Standardized fleet of 737 aircrafts
Southwest the low fare airlines
High level of employee stock ownership
Flexible union contracts
High compensation of employees
15-minute gate turnaround
Limited use travel agents Looking Ahead : Looking Ahead Increase more non stop flights
Enrich operation system
Include daily non stop flights in busy air traffic route. Thanks : Any Questions Thanks