In DOT’s awarding of this Triple Crown, Southwest was not compared only to other point-to-point short-haul airlines, but also to the larger, traditional hub and spoke airlines dominated by major carriers such as: Delta, United, and American Airlines.
Southwest’s growth has not at all affected the quality of service. The airline stays true to its values even in the darkest of times, so its customers receive consistent service regardless of external forces, which derail the pricing structure, and service of other airlines.
2. How does SW increase productivity, and efficiency while driving down costs (company value)?
- Southwest pays its employees less but treats them extremely well and compensates with stock options and profit sharing giving them a sense of ownership. Southwest employees are extremely committed to the organization’s goals and understand what needs to take place in order to be profitable and still maintain consistently high customer service level. Southwest’s employees watch costs carefully, take on more responsibilities compared to their counterparts at other airlines, and are more productive than its competitors’ employees in many ways.
- Southwest pilots fly 80 hours per month compared to 50 hours for most major airline pilots. Flight attendants work 150 hours per month compared to 80 hours at many rival airlines. United’s senior flight attendants get 52 vacation days per year compared to 35 days for Southwest’s veterans.
- Flight attendants at Southwest clean the cabin between flights; competitors’ attendants do not. Southwest mechanics change tires faster than other airlines’ mechanics do, and the overall efficiency of ground operations keeps Southwest’s 737s in the air 10.9 hours per day, more than any other major airline. Southwest’s jets fly at 7.5 cents per seat mile, the lowest cost of any major airline and lower than any airline except JetBlue’s 7 cents per seat mile.
- Southwest flies point-to-point instead of using a hub-and-spoke system.
- Southwest has kept training and operating costs low by staying out of expensive, big city airports and by flying one type of airplane. Southwest has avoided growing too fast so it is able to pay its bills in bad economic times.
- Southwest leads the airline industry in Internet bookings, which are cheaper than processing tickets by agents.
- Because Southwest is only a domestic carrier, it has avoided international travel problems.
3. How does SW create an environment where employees love to work (employee value)?
One of the walls in the People Department of Southwest is devoted to large colorful cards that describe the various positions at the company. The cards outline the job descriptions and at the top of the cards are three red hearts (its all about LUV LUV LUV) with the quote, "People - The Heart of Southwest Airlines." Southwest truly values its people and believes that if a business is to successfully function, the employees must be happy and satisfied.
Southwest has a very strong and meaningful, self-fulfilling culture which values creativity, task accomplishment and both individual growth and satisfaction. Southwest puts a very high priority on constructive interpersonal relationships and the personal satisfaction of its employees. Their employees are expected to treat one another in a friendly and pleasant way and to openly share information, opinions, and feelings and be supportive, helpful, and interested in the suggestions and ideas of others.
The airline encourages their employees to enjoy their work, develop themselves, and take on new and interesting activities. The culture encourages managing in a participative and employee-centered way and effectively empowers the employee to personally take responsibility for the success of the business if they hope to survive and prosper. Their culture has produced a sense of identity and commitment, which goes far beyond self-interest.
