Another passenger, an elderly woman flying to Phoenix for cancer treatment, generating because she had no family or friends at her destination. The ticket agent invited her into Hermes and escorted her around Phoenix for two weeks. 12 Southwest Airlines customers were often surprised by Southwest Spirit. On some flights, mega-zone pictures of gourmet meals were offered for dinner on an evening flight. Flight attendants wrongheaded to have fun; songs, jokes, and humorous flight announcements were common.
One flightiness’s had a habit of popping out of overhead luggage compartments as passengers attempted tattoos their belongings, until the day she frightened an elderly passenger who called for oxygen. 3 Harebells once served In-flight snacks dressed as the Easter Bunny. Intense company communication and camaraderie was highly valued and essential to maintaining esprit De corps found throughout the firm. The Southwest Spirit, as exhibited by enthusiasm introverted personalities, was an important element in employee screening conducted by Southwestwards Department.
Employment at Southwest was highly desired. In 2006, 3,363 employees whirred and 284,827 applications were received. Once landed, a Job was fairly secure. The airline had Anatolia off an employee since 1971. Historically, employee turnover hovered around 7%, the lowest rate in the industry. In 2008, Southwest had more than 33,000 employees; In 1990, Southwest had 8,employees and less than 6,000 in 1987. During Initial training periods, efforts were made to share and instill Southwest’s unique culture.
New-employee orientation, known as the new-hire celebration, have In the past Included Southerliness’s of the Wheel of Fortune game show, scavenger hunts, and company videos including the “South-west Airlines Shuffle” in which each department introduced itself, rap style, and in which Clearheadedly as Big Daddy-O. To join the People Department (I. E. Human Resources), employees requisitioning customer experience.
Advanced employee training regularly occurred at the University of People at Love Field in Dallas. Various classes were offered, including team building, leadership, and cultural diversity. Newly pro-mooted supervisors and managers attended a three-day class called “Leading with Integrity. ” Each De-apartment also had its own training division focusing on technical aspects of the work. ‘Walk-a-Malady” encouraged employees from different departments to experience firsthand the day-to-day active-tiles of their co-workers.
The goal of this program was to promote respect for fellow workers wellspring’s awareness of the company-14 Employee Annihilative was supported by management and encouraged at employees proposed designs for ice storage equip-meet that reduced time and costs, and baggage handlers learned to place luggage with the handles factorization to reduce unloading time. Red hearts and “Luvs’ were central parts of the internal corporate culture, appearing transmutations literature. A mentoring program for new hires was called Coachers. Heroes of the Heartlands” were given annually o one behind-the-scenes group of workers, whose department name wastepaper on a specially designed plane for a year. Other awards honored an employee’s big misanthropes the “Bone of the Year Award. ” When employees had a story about exceptional service to share,they were encouraged to fill out a “LUVS Report. ” 8 TABLET Southwest placed great emphasis on maintaining cooperative labor relations: 87% of all employ-sees were unionized. Southwest pilots belonged to an independent union and not the Airline Plasticization, the union that represented more than 60,000 pilots.
The company encouraged the unions their negotiators to conduct employee surveys and to research their most important issues prior teach contract negotiation. At its 1994 contract discussion, the pilots proposed a 10-year contract withstood options in lieu of guaranteed pay increases over the first five years of the contract. In 1974,Southwest was the first airline to introduce employee profit sharing. Through the plan, employments about 10% of the company’s stock. Herb Keller summed up the Southwest culture and commitment to employees: We don’t use things like TTS.
It’s Just a lot of people taking pride in what they’re doing…. You’ve to recognize that people are still the most important. How you treat them determines they treat people on the outside… I give people the license to be themselves motivate others in that way. We give people the opportunity to be a maverick. You donate to fit in a constraining mold at work?you can have a good time. People respond that. 1 5 Southwest Imitators Southwest’s strategy spawned numerous imitators, most of which failed.
Two of the more successfully-up firms, Midwest Express and America West, both went through Chapter 11 bankruptcy pro- seeding. Evaluate was grounded after its May 1996 crash in the Florida Everglades, reemerging a yearly as Raritan. The major airlines tried to compete directly with Southwest. The Shuttle by United, a so-called”airline within an airline,” was started in October 1994. United objective was to create a new airliners by United with many of the same operational elements as Southwest: a fleet of sass, low fares,short- haul flights, and less restrictive union rules.
United saturated the West Coast corridor with short-haul flights on routes such as Oakland-Seattle, San Francisco-San Diego, and Sacramento-San Diego. The Shuttle was unable to achieve the same level of productivity as Southwest and, in 2001. Undistinguished Shuttle service and folded the remaining flights into its regular service. US Airways edited same with its Meteorite discount service. In 2003 United started a new discount carrier called TED. Some of the attempts to imitate Southwest were almost comical.
Continental Elite (Calcite) was effort by Continental Airlines to develop a low-cost service and revive the company’s fortunes aftereffect out of bankruptcy in April 1993. In March 1994, Continental increased Calcite service to daily flights. Continental soon encountered major operational problems with its new strategy. 16 Withiest fleet of 16 efferent planes, mechanical delays disrupted turnaround times. Various pricing for on-time service, amontillados soared by 40%. In January 1995, Continental announced that it would reduce its capacity 10% and eliminate 4,000 Jobs.
By mid-1995, Continentals Calcite service had been largely discos-tinted. In October 1995, Continentals CEO was ousted. A Successful Start-up: Stubble Airways Morris Air, patterned after Southwest, was the only airline Southwest had acquired and integrated insists own operations. Prior to the acquisition, Morris Air flew Boeing sass on point-to-point routes,operated in a different part of the U. S. Than Southwest, and was profitable. When Morris Air wisecracked by Southwest in December 1993, seven new markets were added to Southwest’s system.
Minion, Morris Air’s former president, David Melanin, announced plans for Stubble Airways, a marline based at New Work’s JEFF Airport. Stubble had a successful PIP in April 2002, with the stocking 70% on the first day of trading. Stubble had a geographically diversified flight schedule authenticated both short-haul and long-haul routes. Although Stubble was viewed as a low-fare carrier, theatrical emphasized various service attributes, such as leather seats, free Live (a 24-channel satellites service with programming provided by Directive), and predestined seating.
TB00419 In 2008, Stubble served 55 cities in the domestic United States, Mexico, and the Caribbean. Stubble had a fleet of 194 Airbus AWAY aircraft and 30 Embrace 190 regional Jet aircraft. Stubble revenue minion was $2. 6 billion, one-quarter the size of Southwest. The company had a net loss in 2005 and button returned to profitability in 2007. A major ice storm that hit New York in early 2007 severely tested company. More than 1,200 flights were cancelled over a six-day period. Not long after, Advancements was asked by the Board to step down as CEO.
He remained as Chairman. Southwest Expansion Southwest grew steadily over the years prior to 2008, but the growth was highly controlled. New air-ports were carefully selected, and only a few new cities were added each year. As Keller wrote to housemistress in 1993, “Southwest has had more opportunities for growth than it has airplanes. Yet, unlikeliest airlines, it has avoided the trap of growing beyond its means. Whether you are talking with unofficial or a ramp agent, employees Just don’t seem to be enamored of the idea that bigger is deter. Non October 1996, with the initiation of flights to Providence, Rhode Island, Southwest entered northeast market. The entry into the northeast region of the U. S. Was, in many respects, a logically for Southwest. The northeast was the most densely populated area of the country and the monolayer region where Southwest did not compete. New England could provide a valuable source passengers to Florist’s warmer winter climates. Southwest’s entry into Florida was exceeding immaterialness. Despite the large potential market, the northeast offered a new set of challenges for Southwest.
Airport congestion and air-traffic control delays could prevent efficient operations, lengthening turn-around time at airport gates, and wreaking havoc on frequent flight scheduling. Inclement weatherproofed additional challenges for both air service and car travel to airports. Nevertheless, Southwest con-tinted to add new northeast cities. A few years later, Southwest was flying to various northeast airports,including Long Island, New Hampshire, and Hartford. In 2004, Southwest began flying to Philae-phi, which was the first major northeast market entry.
As of 2008, Southwest had not entered markets outside the 008, Southwest was in an interesting and unique position. Although the company had a strong financial position, major carriers like Delta and Northwest headache out of bankruptcy protection with lower costs and more efficient operations. While Extemporaneously productivity remained high, its operating costs were rising. The company had the historicalness for pilots of narrow-body Jets. Clearly, 2008 and the years following would result in dramatic changes to airline industry struck-true. Would Southwest be able to maintain its position as America’s most prosperous airline?