What’s the airline-industry jargon for unconventional wisdom? Southwest Airlines.
By some estimates, the country’s major carriers have consumed perhaps $100 billion in capital during the past decade, but Southwest Airlines continues to be profitable. It’s been in the black for 33 consecutive years and, last week, for the 127th consecutive quarter, it paid a modest dividend.
Its balance sheet, with about $3 billion in cash on hand and $600 million in available credit, is the envy of an otherwise fuel-price-ravaged industry.
What does Southwest know that no one else does? It keeps things simple and consistent, which drives costs down, maximizes productive assets, and helps manage customer expectations.
• One Plane Fits All
• Point-to-Point Flying
• Simple In-Flight Service
• No Frills, No Fees
• Strong Management
• A Relatively Happy Workforce
• Aggressive Fuel Hedging
Photo by Southwest.
Southwest’s Seven Secrets For Success
August 21, 2008 by Rich | 4 Comments
In Advice, Customer Service, Transportation
Angela on August 22nd, 2008 at 12:07 pm
Although I never fly, I’ve heard about all those airline problems on the news. It’s good to hear that someone is doing it right in the first place. Hopefully other airlines will follow suit soon.
Matt Helphrey on August 22nd, 2008 at 4:00 pm
I always look to fly Southwest first because of the lower rates.
All I look for is to get from point A to point B as efficiently as possible. Comfort and amenities take a back seat to price.
Matt
cassy on August 23rd, 2008 at 12:11 am
Even if i will pay more, as long as im safe and can reach to my destination safely.
jaeda on August 23rd, 2008 at 6:08 am
rates are not important to me, as what cassy just said.. as long as we reach to the desired location safe and sound, that’s all that matters.