Air Southwest Company
Southwest Airlines took off in 1969 (then called Air Southwest Company) by businessman Rollin King and Texas lawyer Herb Kelleher, servicing Dallas, Houston, and San Antonio Texas with frequent, low-priced flights. What began as a small Texas airline has grown to become one of the largest airlines in America. Today, Southwest Airlines flies more than 65 million passengers a year to 59 different cities all across the country.
Compared to its competitors, Southwest Airlines’ rates are consistently lower. Southwest’s human resources management is used as a competitive strategy to build a productive workforce to control costs. This is how they can offer lower fares. Their strategy is to instill a sense of fun not only in Southwest’s passengers but among its employees as well. There are about 3,000 positions available at Southwest, and the most important part of the hiring and training process is the employee’s attitude.
They want their employees to be courteous to customers and have a good sense of humor. Every employee plays an important role in serving customers. As part of their aggressive customer service strategy, employees attend training classes to learn about the company and its record of customer service. To learn how the company operates, employees are encouraged to work in departments other than their own. The mission of Southwest Airlines is a dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit.
Southwest recently ranked first in customer service among major U.S. air carriers in a recent survey. Although it is not a major focus of Southwest, financial compensation plays a role in getting and retaining the best employees. It provides incentives to employees through flexible work hours, and there is also a generous profit sharing program. Southwest also has an employee turnover rate of only 6%, the lowest in the airline industry. It has been on the Fortune 100 “Best Companies to Work For” list several times.
Competition among airlines has continued to be fierce. It is the only thing that could be seen as a threat to Southwest. For example, Delta Airlines is one of the largest airlines in the world, however, Southwest Airlines has managed to maintain a respectable annual growth rate and show a profit for 30 consecutive years. In comparison to an airline like Delta, one of Southwest Airlines’ only weaknesses would be that it does not fly internationally.
However, according to some reviews about Southwest, another weakness includes the seating arrangements. Southwest does not have assigned seating, creating confusion for people boarding. Other complaints include the food that is or isn’t, served during the flight. Many people said they would have liked it if they got more food during their flight. But it seems that customer service is what was most important to flyers. Most reviews confirmed that the staff went the extra mile in ensuring customer satisfaction.
On July 15, 2004, Southwest Airlines announced that it’s Vice Chairman of the Board of Directors and CEO, James Parker had retired for personal reasons. Herb Kelleher, Chairman of the Board, stated that Parker’s decision was accepted by the Board both with deep regret and profound gratitude to Jim for his many contributions to the success of Southwest over the last 18 years.
I offer no suggestions to the human resources managers or to Southwest. It appears to me that Southwest is taking the right steps in being a successful airline. Southwest maintains the lowest fares in the industry, ranks number one in customer service, on-time performance, employee turnover rate, and has a consistently high safety record. My only suggestion would be to keep serving more cities and continue to spread throughout the country building more airplanes and airports as needed. If they keep doing what they are doing, I believe they will continue to be successful.
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