Description
This is a presentation about the operations management at Southwest Airlines.
Operations Management At Southwest Airlines
Click to edit Master subtitle style
2/5/13
Background
Ø In 1967,Rolling King and Herb Kelleher Ø In 1982, “Just Say When” campaign Ø In 1987,Frequent flier programme,no. of
founded Southwest an intrastate airlines.
flights taken.
Ø In 1992,Southwest won the annual Triple
Crown Award.
Ø In 1996,SW started selling through Website
www.southwest.com
2/5/13
Cont….
Ø In 2000,SW placed biggest aircraft order
ever,
Ø Ø Ø
delivery of 94 Boeing737. In 2001,sept terrorist attacks,SW managed to post a profit. In 2002,the worst year ever for the airlines industry ,SW posted its 30th consecutive profit. In 2003,SWAirlines was the 4th largest US airlines in terms of domestic customers carried. 2/5/13
Ø
Southwest’s Business Model
?Providing safe ?Reliable ?Short duration air service ?Lowest possible fair ?Quality service ?Point to Point ?Blanketing stratgy
2/5/13
Key operation parameters of sw
§ Passenger Load factor-
is the percentage of a plane filled with paying passengers.
§
Revenue passenger miles-
One paying passenger flown one line Source:www.sout 2/5/13 hwest.com
Cont……
Ø
Aircraft Utilization-in hours and minutes in a day a plane is used
2/5/13
Contd…….
Ø In2002,Sluggish
economy
Ø High energy prices Ø Tension in Gulf
spelled
2/5/13
SW’s Top Ten Airport-Daily Departure
? Southwest
avoided congested airport.
? High employee
productivity.
? Reliable on time
performance.
2/5/13
SW:Anatomy of a 15-minute Turnaround
7:55 Ground crew chat around gate position 8:03:30 Ground crew move to their vehicles 8:04 crew moves towards gate 8:06:30 Baggage unloaded, refueling
8:15 Jet way retracts 8:15:30 Pushbac k from backs
8:10 Boarding complete. ground crew leaves
8:08 Boarding call ,baggage loading, refueling complete
8:07 Passeng er off plane
8:18
Pushback disengages plane leaves for runway
2/5/13
How SW strategy is Implemented No meal s
No site assig nme nts Passe nger relate d depar
Limite d Passe nger servic e Short hual,p oint to point High travel aircra ft utiliz atin
No bagg age trans fers
No connecti on with other airlines
2/5/13
Very low ticke t price s
Activities
?Standardized fleet of 737 aircrafts ?Southwest the low fare airlines ?High level of employee stock ownership ?Flexible union contracts ?High compensation of employees ?15-minute gate turnaround ?Limited use travel agents
2/5/13
Looking Ahead
?Increase more non stop flights ?Enrich operation system ?Include daily non stop flights in busy air
traffic route.
2/5/13
Thanks
Click to edit Master subtitle style
2/5/13
doc_286866504.pptx
This is a presentation about the operations management at Southwest Airlines.
Operations Management At Southwest Airlines
Click to edit Master subtitle style
2/5/13
Background
Ø In 1967,Rolling King and Herb Kelleher Ø In 1982, “Just Say When” campaign Ø In 1987,Frequent flier programme,no. of
founded Southwest an intrastate airlines.
flights taken.
Ø In 1992,Southwest won the annual Triple
Crown Award.
Ø In 1996,SW started selling through Website
www.southwest.com
2/5/13
Cont….
Ø In 2000,SW placed biggest aircraft order
ever,
Ø Ø Ø
delivery of 94 Boeing737. In 2001,sept terrorist attacks,SW managed to post a profit. In 2002,the worst year ever for the airlines industry ,SW posted its 30th consecutive profit. In 2003,SWAirlines was the 4th largest US airlines in terms of domestic customers carried. 2/5/13
Ø
Southwest’s Business Model
?Providing safe ?Reliable ?Short duration air service ?Lowest possible fair ?Quality service ?Point to Point ?Blanketing stratgy
2/5/13
Key operation parameters of sw
§ Passenger Load factor-
is the percentage of a plane filled with paying passengers.
§
Revenue passenger miles-
One paying passenger flown one line Source:www.sout 2/5/13 hwest.com
Cont……
Ø
Aircraft Utilization-in hours and minutes in a day a plane is used
2/5/13
Contd…….
Ø In2002,Sluggish
economy
Ø High energy prices Ø Tension in Gulf
spelled
2/5/13
SW’s Top Ten Airport-Daily Departure
? Southwest
avoided congested airport.
? High employee
productivity.
? Reliable on time
performance.
2/5/13
SW:Anatomy of a 15-minute Turnaround
7:55 Ground crew chat around gate position 8:03:30 Ground crew move to their vehicles 8:04 crew moves towards gate 8:06:30 Baggage unloaded, refueling
8:15 Jet way retracts 8:15:30 Pushbac k from backs
8:10 Boarding complete. ground crew leaves
8:08 Boarding call ,baggage loading, refueling complete
8:07 Passeng er off plane
8:18
Pushback disengages plane leaves for runway
2/5/13
How SW strategy is Implemented No meal s
No site assig nme nts Passe nger relate d depar
Limite d Passe nger servic e Short hual,p oint to point High travel aircra ft utiliz atin
No bagg age trans fers
No connecti on with other airlines
2/5/13
Very low ticke t price s
Activities
?Standardized fleet of 737 aircrafts ?Southwest the low fare airlines ?High level of employee stock ownership ?Flexible union contracts ?High compensation of employees ?15-minute gate turnaround ?Limited use travel agents
2/5/13
Looking Ahead
?Increase more non stop flights ?Enrich operation system ?Include daily non stop flights in busy air
traffic route.
2/5/13
Thanks
Click to edit Master subtitle style
2/5/13
doc_286866504.pptx