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Southwest Airlines has evidently demonstrated its high-performance in the airline industry. Southwest's productivity was higher per employee compare to other major airlines, 44 passengers were served per employee in 1. And yet, Southwest airlines had an average of 81 employees per aircraft, compared to 157 and 15 for United and American Airlines respectively. Those figures were clearly ahead of its major competitors. Additionally, Southwest Airlines was able to do this with frequent flights, for example roundtrips daily between Dallas and Houston. As for price, Southwest Airlines offers a cheap and simple pricing schedule, e.g. $6 to fly anywhere within California. Southwest Airlines' overall operation cost was 7.1 cents per seat mile while other airlines were 0-0 percent higher. Clearly, Southwest Airlines was able to achieve real profits, high productivity and low cost which other airlines cannot achieve one without sacrificing the other. The reasons for such success can be discussed in two parts, external market strategies and internal human resource relations.
In terms of external market strategies, Southwest's success was a combination of several strategies. For one, Southwest targets short flights. By eliminating the "hub" topology and utilizing a "point-to-point" topology, flight delays were decreased dramatically and flight time was shortened to an average of 65 minutes. Combining that with a short turn-around time per flight (15 minutes), they could fly much more flights per day than all of its competitors. As for meals, they are not served'that would incur an extra $40 per person. Instead, snacks or "frills" were served as an รก-la-cart item. Operation-wise, they use only one type of aircraft. This would cut time and money spent on training and maintenance. Lastly, customer service was excellent; they were awarded the "Triple Crown" 4 times, a prestige award in the airline industry.
Internally, the article presented placed Human Resource as the primary driving force for the company's success. As Executive Vice President, Colleen Barret said, "If you're comfortable, you're smiling more and you give better service." Employees can be highly productive if they're happy. In fact, people are willing to trade for a lower-than-average salary with a fun, collegial and strong team-spirited company. In one of the testimony stated that, in other companies, "…everyone but the top two or three people were considered commodities. But I have come to appreciate [Southwest as] a place where kindness and the human spirit are nurtured."
In brief, Southwest Airlines has achieved what every other airline companies can only hope for real profit, high productivity, low operational cost, satisfied customers and content employees. But to do that, Southwest Airlines have shown that the key is an excellent HR facility aimed at fostering team spirit and a fun atmosphere in the work environment. As the saying goes in Southwest, "work is important...don't spoil it with seriousness."
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