There is an "ageless legend" in the entire civil aviation industry - the growth and development of Southwest Airlines has not only been compared to the origin of the low-cost aviation operating model by the world, but also can be mourned all over the United States. Hong Kong is unique in the civil aviation field and has continued to maintain profitability. So what exactly is the secret to the company's success?
In 2005, the entire U.S. airline industry suffered a total loss of US$10 billion, another ominous year. Overcapacity and unprecedented fuel prices have thrust many struggling airlines into a battle for survival, leading to massive downsizing and restructuring. For example, Delta Air Lines and Northwest Airlines both filed for bankruptcy protection in the same year. In contrast, Southwest Airlines has remained profitable for 33 consecutive years—an unprecedented record in aviation history. It is the employees of Southwest Airlines who have created this impressive record. Especially in the past five years, the entire industry has undergone fundamental changes, and the company's employees have met many challenges and overcome countless difficulties. Many airlines are competing in the low-cost, low-fare space in an attempt to emulate the company's success. According to Southwest America’s point of view, there is one thing that these companies cannot imitate – the fighting spirit of their employees (Warrior Spirit of Employees)! In Southwest America, employees make a difference! The company's employees are full of passion. They understand internally the importance of being a “low-cost leader.” Consumers choose Southwest because the company consistently delivers what they want—low ??fares, reliable service, frequent and convenient flights, comfortable cabins, great travel experiences, and first-class service. Passenger programs, smooth terminal boarding process, and friendly customer service. As a result, Southwest won the first place in the United States for customer service in 2005. The company wants to dominate any market it serves and be number one in market share. As a low-fare airline, when entering a new market, competitors often compete by lowering fares. The real difference between the two is that the company keeps its fares low, in addition to offering a large number of convenient flights to business/business and leisure travelers to meet demand. Unlike many of its competitors, the company doesn't charge any change fees and there's no one-night weekend requirement. The company operates in 32 airports and provides more than 3,000 flights every day. Through code sharing with ATA airlines, the company can provide better connecting services.
Through the company's network, passengers can easily find the company's simple and clear fare system. In today's era of online sales, consumers expect the entire online purchasing experience to be efficient and reliable. In addition to being able to book hotels, cars and cruises online, passengers can use their own computers to print out boarding passes 24 hours in advance. The company has also introduced wireless check-in capabilities to provide passengers with relevant information before their flights take off. The company has set up self-service check-in counters at every airport it operates, and more than 50% of passengers check in through self-service. Passengers sometimes spend unnecessary time searching for the most suitable fare on different websites. The company provides a range of services to reduce the inconvenience faced by passengers. Most of 70% of passenger sales are through the company's website. In 2005, the company launched the DING project, which can directly transmit fare information to passengers' desktop computers. Currently, about two million customers can receive the most appropriate fare information. The Rapid Rewards program launched by the company provides a simple and generous reward method to the company's frequent travelers.
For business customers, the company specially provides a ticket booking webpage named SWABIZ. In addition to the normal ticketing function, this webpage can also provide business trip reporting functions for free to corporate managers responsible for business trips, so that managers can better manage their official travel data. All in all, passengers can get low fares in the Southwest at the last minute before their flight! The company's employees know it clearly: Only through low-cost operations can the company make a profit while offering low fares. Although there are many airlines competing with the same operating methods, the company remains the global low-cost leader after 34 years of operation. In 2005, the company still had the lowest unit costs compared with other U.S. airlines.
A successful fuel hedging program insulated the company from the impact of high fuel prices, reducing the company's related expenses by approximately $900 million in 2005. Despite this, the company's cost per gallon has increased by 24% compared with 2004, but unit costs have only increased by 2%. It can be seen that the company's employees are working harder than ever and are well prepared for the future.
Employees know very well that low cost is an inevitable factor in the company's success; productivity is a key factor in maintaining a low-cost advantage. The company continues to achieve the highest productivity of any U.S. airline based on its asset utilization and skilled workforce. One reason for this advantage is the company's single-minded focus on implementing a low-fare, end-to-end market strategy. This strategy allows employees to operate particularly efficiently. Although it had already established efficient operations, the company further intensified its efforts to improve productivity through technological advancements. The company's man-machine ratio is 1:71, which is the lowest ratio since the company was founded in 1972. The workforce is innovative and never gives up, which is why the company keeps unit costs low year after year!
In order to maximize efficiency, the company implements a point-to-point route network, focusing on originating and arriving passengers rather than connecting passengers. About 80% of the company's customers are direct passengers. Direct flights reduce stopovers and connecting points, thereby reducing flight delays and overall travel time.
The aircraft's stopover time is usually only 25 minutes or even less, which is equivalent to improving aircraft utilization. The company has been implementing a single aircraft model (the fuel-efficient B737 aircraft), which has the advantage of simplifying maintenance, operations and training. In order to reduce fuel consumption, the company's 737-700 fleet is equipped with winglets. Company pilots, signers, ground operators and fuel managers work together to find ways to minimize fuel consumption.
The company has a tradition of operating in secondary airports, such as Baltimore Washington Airport; Chicago's Midway Airport; Dallas' Love Field Airport; Houston's Hobby Airport, etc. Now the company has also successfully opened up some trunk airport operations, such as Phoenix, Los Angeles, St. Louis, Pittsburgh, etc. When selecting airports, the company's criteria are those that are well managed, operate efficiently, have low landing and terminal fees, and allow the company to deliver airports that maintain productivity and punctuality. Even though many airlines try to imitate many of Southwest's practices, what they can't imitate is the company's most important success factor - its workforce. Employees are the company's most valuable asset. It's their warm service, caring for their passengers, and never-ending resourcefulness that have helped make Southwest one of the most successful airlines in the world. Our employees are passionate about everything they do and truly care about our customers, the communities we serve, and our company. It is this passion that has made Southwest one of the most respected brands in the United States. "Fortune" magazine has selected it as the most enviable company in the United States for several consecutive years.
Companies spend a lot of time and effort hiring, training, and retaining smart employees. Although it is a low-cost airline, the company offers an excellent benefits package to its workforce. At the same time, the company focuses on cultivating a working atmosphere of cooperation, trust and team spirit - encouraging employees to be innovative and happy about the work they do. For example, their signature sense of humor can make passengers have a pleasant and entertaining experience. Travel experiences that people recall. Employees know that every time they deal with customers with a warm and caring service attitude is a process of showing customers the company's reliable products. When the entire airline industry is in recession, some companies will cancel some free snacks, drinks, pillows, blankets, etc. to cut costs. But the company doesn't, and Southwest is committed to providing a comfortable travel experience. The company continues to provide free meals and drinks to passengers. At the same time, the company invested in the introduction of new aircraft, and the average age of the company's fleet is only 9 years.