PREPARE A STRATEGIC PLAN PAPER FOR SOUTHWEST AIRLINES

Prepare a Strategic Plan Paper for SOUTHWEST AIRLINES

Prepare a Strategic Plan Paper for SOUTHWEST AIRLINES

Executive summary

Twenty-nine years ago? Rollin King and Herb Kelleher got together and decided to start a different kind of airline. They began with one simple notion: If you get your passengers to their destinations when they want to get there? on time? at the lowest possible fares? and make darn sure they have a good time doing it? people will fly your airline. Within 28 years? Southwest Airlines became the fifth largest major airline in America. With the addition of service to Buffalo-Niagara International Airport on October 8? 2000? fly more than 57 million passengers a year to 57 great cities (58 airports) all over the Southwest and beyond. And she does it over 2?600 times a day. Company also got more than 330 of the newest jets in the nation? with an average age of 8.4 years. (Robert? 2002? 122) In her fleet are included three flying killer whales? Shamu One? Two and Three. Lone Star One? painted like the Texas flag? to celebrate Southwest Airlines' 20th Anniversary in a style and manner second to none. Arizona One? a symbol of the importance of the state of Arizona to Southwest Airlines; California One? a high-flying tribute to the state of California; Silver One? our 25th Anniversary plane; Triple Crown One? dedicated to the Employees of Southwest Airlines for their marvellous achievement of five consecutive annual Triple Crown awards and the newest member of the family - Nevada One? a high-flying tribute to the state of Nevada.

Company Background

In May 1988? were the first airline to win the coveted Triple Crown for a month - Best On-time Record? Best Baggage Handling? and Fewest Customer Complaints. Since then we've won it more than thirty times? as well as five annual Triple Crowns for 1992? 1993? 1994? 1995? and 1996. And no other airline has contributed more to the advancement of the commercial airline industry. Southwest were the first airline with a frequent flyer program to give credit for the number of trips taken and not the number of miles flown. In 1966? Herb Kelleher was practicing law in San Antonio when a client named Rollin King proposed starting a short-haul airline similar to California-based Pacific Southwest Airlines. The airline would fly the “Golden Triangle” of Houston? Dallas? and San Antonio? and by staying within Texas? avoid federal regulations. (Robert? 2002? 122)

Competition and lower fares led to greatly expanded demand for airline travel. By the mid-1990s? the airlines were having trouble meeting this demand. Travel increased from 200 million travelers in 1974 to 500 million in 1995? yet only five new runways were built during this time period.

Airline workers generally suffered? with inflation-adjusted average employee wages falling from $42?928 in 1978 to $37?985 in 1988. About 20?000 airline industry employees were laid off in the early 1980s? while productivity of the remaining employees rose 43% during the same ...