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Service Management Consulting
Proposal on designing, implementing and managing the proposed Changed: Southwest Airline
Section 1: Executive Summery and
Part 1: Company's background and the boarding gate queuing issue.
Southwest Airlines, started by Herb Kelleher in 1971, is the fifth largest airline company in America, operating more than 2,700 flights per day and carrying over 64 million passengers a year to 58 different cities all over the United States. ï¿½
In the domestic airline industry, the Southwest Airline Co. has the lowest operating cost by having only one variety of aircraft, the Boeing 737, which makes schedules, maintenance and training easier and cost effective. The airline also cuts costs of cleaning crews by not serving food on-board and having flight attendants clean the planes between the flights. The rapid succession of its flights allows Southwest to offer lower fares.ï¿½
Although Southwest Airlines is very good at cutting the costs down and is a very efficient airline which has helped it to dominate its industry, there are still areas where Southwest can improve its performance.
Many low-cost airlines have approached the market, so Southwest must create and capitalize the innovative and competitive opportunities while identifying and overcoming threats.
A current threat facing Southwest and the entire industry is fuel prices. With oil selling for over 100 dollars a barrel every carrier is feeling a pinch in their bottom line. Higher oil prices affect Southwest more on average because it sells itself as a low cost airline where price is the most important decision factor. ï¿½
Southwest should increase its revenue, otherwise will be out of the market soon.
The innovative approach which Southwest has utilized to cut the prices and use the aircrafts for a longer period is to unload and reload the planes...