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Southwest Airlines. P rofessor William Wan. Market Capitalization. (2002). Current Market Cap- Southwest vs. Combined. 2002. Net Operating Income (millions of dollars). Other Accolades (examples). Airlines Triple Crown Awards Fortune Magazine Best Employer

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southwest airlines

Southwest Airlines

Professor William Wan

other accolades examples
Other Accolades (examples)
  • Airlines Triple Crown Awards
  • Fortune Magazine Best Employer
  • Between 72 and 92, stock price rose a compounded 21,000%
  • Rarely lost money in any single quarter
  • Never experienced major labor strike (1980: 6 days mechanic strike)
    • The last two items may not sound very impressive, but considering what history of the airline industry, what SW has achieved is nothing short of remarkable.
southwest airlines value chain
Southwest Airlines Value Chain

HR Management

R & D

Procurement

SW: Selection, training, bonus, stock option, no layoff, legend, union, smaller crew

Industry: union, confrontational

SW: ticketless, no computerized reservation system, online

industry: ticket, agent, computerized reservation system

SW: all 737, no meal, secondary airport, young fleet

Industry: full service, primary airport

SW: low cost reservation

no meal, few fare options

Industry: high cost, ticket office & agent

SW: high efficiency,

no meals, no seating assignment

Industry: full service

SW: point-to-point,

fast turnaround, short haul

Industry: hub & spoke,

long & short haul

SW: fun, compete with driving, etc.

Industry: business

SW: rapid

reward

Industry: mileage

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