Southwest Airlines Act II - An Airline in Trouble? |
ICMR HOME | Case Studies Collection Please note: This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source. |
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ExcerptsSouthwest's Success StorySouthwest was one of the biggest success stories in America. Up to 2003, the airline had had 31 years of profits in a row. In the years since it was set up, Southwest weathered some major storms and emerged successful. Despite offering a no frills service, it was able to cut out competitors in most markets. Southwest achieved this by offering fares that were considerably lower than those of its competitors and emphasizing customer service... Trouble Brewing
Did Southwest Change?Analysts believed that the culture at Southwest had undergone a transformation in the early-2000s. Southwest was always associated with Kelleher, who was a charismatic leader and influenced a great deal of the culture at the airline. His flamboyant and fun loving attitude pervaded the airline and created a culture that was people oriented, informal, and nurturing. He was also a hands-on leader and involved himself in all the activities of the airline. It was said that he knew thousands of employees by name and often communicated with people personally. Analysts believed that a large part of Southwest employees' motivation was drawn from Kelleher...
ExhibitsExhibit I: Features of Low Cost Airlines |
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