Southwest Essay

3129 words - 13 pages

Background
Southwest Airlines, a Dallas-based airline, began operations at Love Air Field in 1971. Since then, it has grown to be the fourth largest airline in the United States, specializing in major short haul, low fare, high frequency, point to point destinations. Southwest hit the big leagues of air travel in 1989, when its revenue exceeded the billion-dollar mark and acquired major airline status. As of 2000, Southwest has had 28 years of consecutive profitability and in 1990, 1991, and 1992, the only major carrier to make both net and operating profits.
Southwest operates 358 Boeing 737 jets to 58 cities across the United States, employing over 33,000 people. Southwest has been ...view middle of the document...

On September 11, 2001, the airline industry took a devastating blow. After the wake of the terrorist attacks, the major airlines, with the exception of Southwest, began laying off tens of thousand airline employees. The Federal Government issued billions of dollars in aid to the airline industry in ordering to keep companies operational. Two of the nation's three largest airlines posted smaller-than-expected operating losses in the third quarter, although one of them – United Airlines' parent UAL Corp. – warned that its loss will increase in the current period. Despite the smaller-than-expected operating loss, the sharp drop in air travel pushed the net loss at UAL over $1 billion for the quarter, the worst in the company's history.
Meanwhile, Delta Air Lines, the number 3 airline company, lost $295 million, or $2.43 a share, in the quarter, excluding special items, which put it below First Call's forecast of a $2.70 a share loss. The company earned $273 million, or $2.08 a share, a year earlier. All major airlines have seen steep drop offs in travel since September 11, and most carriers, including UAL and Delta, had been expected to lose money in the quarter before the attack. This loss was due to a decline in business travel based on the general slowing of the economy.
Boeing Co. plans to reduce commercial jetliner production by 50 percent because of an industry-wide slowdown in air travel and demand for planes following the September 11 terrorist attacks. One week after the attacks, Boeing announced plans to slash staff in its commercial jet unit due to an expected sharp drop in orders.
With the threat of a full-blown recession, the airlines are scrambling to keep afloat. The fear of flying combined with the security of airports being questioned has put the airline industry in jeopardy. Major cut backs in staff, flight schedules, inventory, and services are affecting the airline industry world wide, as well as tourism and business travel. Southwest’s strong financial position and services may be its redeeming quality during this difficult economic time.

MISSION STATEMENT

The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit.

To Our Employees
We are committed to provide our Employees a stable work environment with equal opportunity for learning and personal growth. Creativity and innovation are encouraged for improving the effectiveness of Southwest Airlines. Above all, Employees will be provided the same concern, respect, and caring attitude within the organization that they are expected to share externally with every Southwest Customer.

Critique the current mission statement

Southwest addresses their primary mission of providing outstanding customer service, but should also their mission of providing low cost and on time flights. In addition, Southwest should address safety and...

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