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SOUTHWEST AIRLINES 30TH ANNIVERSARY

W A Schoneberger

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Abstract

This article presents a 30th anniversary profile of Southwest Airlines, which used a loophole in airline regulation to cut fares for intrastate short-haul routes in Texas and later took advantage of late 1970s' deregulation to grow to its current level of 2,700 daily flights. Consistently the most profitable airline in the U.S., keeping costs down by tactics such as having a uniform fleet of all 737's, high utilization rates for its aircraft, simple yet advanced cockpit designs and marketing innovations. The article details management structure, including succession plans of its retiring chairman.

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What this paper is about

This article presents a 30th anniversary profile of Southwest Airlines, which used a loophole in airline regulation to cut fares for intrastate short-haul routes in Texas and later took advantage of late 1970s' deregulation to grow to its current level of 2,700 daily flights. Consistently the most profitable airline in the U.S., keeping costs down by tactics such as having a uniform fleet of all 737's, high utilization rates for its aircraft, simple yet advanced cockpit designs and marketing innovations. The article details management structure, including succession plans of its retiring chairman.

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Available abstract

This article presents a 30th anniversary profile of Southwest Airlines, which used a loophole in airline regulation to cut fares for intrastate short-haul routes in Texas and later took advantage of late 1970s' deregulation to grow to its current level of 2,700 daily flights. Consistently the most profitable airline in the U.S., keeping costs down by tactics such as having a uniform fleet of all 737's, high utilization rates for its aircraft, simple yet advanced cockpit designs and marketing innovations. The article details management structure, including succession plans of its retiring chairman.

Key concepts: Deregulation, Cockpit, Aeronautics, Aviation, Business, Open skies, Operations management, Marketing

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