While some airlines were suffering due to the Covid-19 virus outbreak’s direct economic consequences, Southwest Airlines managed to maintain a unique trajectory and not lay off many employees. Even with the increase in mergers and acquisitions, Southwest Airlines has maintained an effective set of tactics that distinguishes it from other airlines. Their low prices on most of the popular routes help increase revenue (Cote 2018). They have a unique hiring process that focuses on finding motivated employees who are open to collaboration and cooperation. Customers are at the center of their business practices, including the cancellation policy that allows customers to cancel tickets up to 10 minutes prior to departure. Cash will be available immediately for the next trip. The management constantly evaluates and uses low-cost options to improve customer experiences (Payne, et al. 2018). Southwest Airlines maintains a distinctive stance with this approach.
According to Southwest Airlines’ mission statement, dedication to providing the best customer service delivered with warmth, friendliness and individual pride. This demonstrates that Southwest Airlines places great value on consumer loyalty and excellent customer services. Its goal is to become the best loved, most profitable and most efficient airline in the entire world. It is clear that the mission statement highlights the company’s commitment to provide high-value, profitable services which generate higher profits.
Southwest Airlines is one of the most successful companies in America that has used benchmarking techniques to improve performance. Senior management invested in an ebooking system that would streamline clients’ ticketing and in cost leadership to appeal to a lot of price-sensitive customers. The goal was to ensure high quality care and increase revenue and market share. To improve its on-time performance as well as prevent any freight cancellations or delays, the company has employed benchmarking. This time, American Airlines and NASCAR were used as time management benchmarks. The company also improved its existing strategies. The benchmarking is used to keep freight and operating costs as low as possible (Song et. al. 2020). A portion of earnings is distributed to employees by the corporation, which motivates them to be more productive. The result is satisfied employees, pilots and shareholders. These measures allow the company to keep its competitive edge.
Senior management led the success of the airline by encouraging innovation and insisting on low prices. They also made sure that efficient operations were maintained. Executive management has made innovative investments in logistical technology such as RFID technology to enable customers and them to track delivery. Low-fare, which doesn’t charge transaction fees, and offers two checked bags for free, have been key to promoting consumer loyalty and building brand equity. (Song and al. 2020). Senior management developed a point-to–point route network in order to reduce operational expenses and provide efficient and economical logistical operations.