The company ensures that each plane in the fleet makes extra flights in a day. This makes it possible to save on the costs of training and maintenance. Their success has been due utilization of cost effective revenue streams. In 1995, Southwest was one of the first airline companies to have a website. Online bookings contributed to 70% of the company’s revenue in 2006 (Lauer, 2010). Southwest earned the respect for thinking outside the box and proactive management of risks. This included fuel hedging in order to insulate against fluctuation of fuel prices. In considering the costs, Southwest has maintained $0.12 per seat mile, which is roughly 25% cheaper than other competitors are (Jones, 2000). The turnaround time for an aeroplane is 15 minutes (Jones, 2000). This made possible by the multitasking crew. The pilots and the aircrew clean the plan while on the ground. On average, there are 100 employees per aircraft in contrast to competitors who have 130, and the staffs at Southwest serve close to 2400 passengers annually on average compared to competitors 1000 (Kusluvan, 2003)
Service to customer
Southwest delivers the best on time performance, few cases of lost luggage and fewest customers complains making it maintain leadership in Triple Crown awards. They keep the fairs simple with no interline connections. Customers meet employees at Southwest who are uninhibited and empathetic. Jokes, stories and the behavior of flight attendants express the actual real person worth of the job. Employees at Southwest are encouraged to be creative and have personality (Freiberg, 1996). Not only when dealing with customers but they are encouraged to behave as if they own as place in practicing business.
The heart of Southwest’s success is the personnel who run the airline. Southwest recruits the best personnel available to the industry in order to maintain their position as the leading airline service company. Recruitment is done through extraordinary selective process. Simply put there are 200,000 applications for the roles (Hoffer, 2005), and out of these, around 30,000 are interviewed and only 400 are selected for the jobs. The major focus during recruitment is teamwork and attitude with emphasis on recruiting people of the same age bracket. The interview panel asks how the applicant has used his or her sense of humor. They ask how one is able to use humor to diffuse a difficult situation. In one occasion, applicants are asked to give presentations to other applicants about their personality (Jones, 2000).