350 Word Synopsis Southwest Airlines
Southwest Airlines-Joy Shields
Southwest Airlines was founded in 1971 by Herbert Kelleher and Rollin King as a low cost airline concentrating on short haul flights of less than 500 miles. In Southwest’s first year, it was very difficult; the company was faced with the dilemma of either selling planes or lay off people to save cash. This would help Southwest to meet their short term obligations. Southwest partners put the problem to the ground service personnel, agreed not to lay any employees off. The ground service personnel agree to reduce the turnaround time from 55 minutes to 15 minutes, this improve the revenue, producing capability of the airplanes, Southwest Founder Herbert Kelleher, kept his agreement and did not lay any employees during the nine years of operation. A collaborative decision was made, and staff took pay cuts in exchange for the safety of their jobs. In 1980 a mission statement was adopted, focusing on customer service, corporate culture, which emphasizes flexibility, family orientation and fun.
By 1988, Southwest had grown to approximately 24,000 employees serving 25 states with approximately 2,500 flights per day. Southwest operates as a low-cost, no frills, high customer service airline from point-to point (Smith, 2004). The key to their success and achievement is the leadership strategic plan and vision. This included their 20 minute low turnaround time. Southwest positive thinking and planning of what to be done needs set the objectives to achieve their goal. The time required it takes for a plane to land and take off, requires a high level of teamwork, coordination, and flexibility among different employees and occupational groups. Nearly 90 percent of Southwest’s workforce is organized into nine unions, and they work well together (Heskett, 2002).
In 2001, Southwest’s stock price increased 29 percent per annum for the previous ten-year period. Southwest presently serves 59 airports in 30 states. The airline...