Balanced Scorecard and Strategic Analysis of Southwest Airlines

Essay by NilsLAUniversity, Bachelor'sA, May 2006

download word file, 9 pages 4.7 3 reviews

Downloaded 955 times


Southwest Airlines Co. provides low-fare, "no-frills", civil air transportation. The company was incorporated in 1967 and is headquartered in Dallas, Texas. As of December 31, 2005, it operated 445 Boeing-737 aircrafts and provided service to 61 cities in 31 states. The company also provides frequent flyer awards to business partners, including credit card companies, hotels, telecommunication companies, and car rental agencies. Southwest Airlines is the fifth largest airline company in America, operating more than 2,150 flights per day and carrying over 44 million passengers a year. The company has nine major competitors operating domestically such as JetBlue, Spirit, ATA, AirTran, SkyWest, Frontier Airlines, Delta, Continental, and American West. While those competitors suffered tremendous loses or bankruptcy partly due to the impact of 9/11, Southwest Airlines has maintained its existence, profitability and its employee/customer service integrity.

Southwest boasts the best on-time record, best baggage handling, and fewest customer complaints in the airline industry and won the industry's Triple Crown award for Best Airline five times in a row from 1992-96.

It was the first airline with a frequent flyer program to give credit for the number of trips taken, not just the number of miles flown, and also pioneered senior discounts, Fun Fares, Fun Packs, a same-day air freight delivery service, ticket-less travel, and many other unique features. Southwest Airlines has proven to take advantage of such strategies and succeed because of the high-frequency, short hops at low rates they offer. Even though other airlines have begun to incorporate Southwest Airlines strategies and values, Southwest Airlines still leads and remains efficient by maintaining the loyalty of their employees and in keeping their customers satisfied.

Over the years Southwest Airlines has grown strategically explaining offers of expansion opportunities by over one-hundred cities. Southwest is the only airline that has generated...