Gopher-preneur book of the month, June '04

Discussion in 'Business Operations' started by Team Gopher, Jun 1, 2004.

  1. Team Gopher

    Team Gopher LawnSite Platinum Member
    from -
    Posts: 4,041

    Nuts! Southwest Airlines' Crazy Recipe for Business and Personal Success

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    Southwest Airlines began operating in 1971 with four planes serving three cities and with revenues of $2 million. In 1995, the company had 224 planes serving 45 cities and revenues of almost $3 billion. Moreover, the company has made a profit every year since 1973, one of the few airlines that can make that claim. The authors, a husband and wife who are partners in a San Diego consulting firm, attribute much of Southwest's success to the willingness of its management, led by chairman Herb Kelleher, to be innovative. Southwest's primary operating philosophy is low fares and lots of flights. To make this formula work, Southwest management has created a culture where employees are treated as the company's number one asset. The Freibergs list a number of things the airline management does to benefit its employees, including such programs as profit-sharing and empowering employees to make decisions. Southwest also mixes in New Age management techniques, such as celebrating different milestones, and letting love play a part in running the airline (the company's stock ticker symbol is LUV). The Freibergs state up front that their work is not an expose and make no apologies for presenting a very positive and optimistic view. While the success the airline has achieved is worthy of study, some critical analysis would have made for a more worthwhile presentation.

    If anyone has any thoughts or experiences with Southwest airlines, please share them.
     
  2. EagleLandscape

    EagleLandscape LawnSite Platinum Member
    Male, from Garland, Texas
    Posts: 4,347

    I only fly southwest when I can. Their hub is in my hometown, and they are always friendly. It's not the nicest aircraft, but why would I spend an extra hundred+ bucks on a flight when I'm only going to be in the air for a short amount of time.

    I remember hearing that all the airlines during 9-11 were about to go bankrupt, but I also remember hearing that Southwest could go something like 70 days of operating expenses on their current corporate savings.

    How many of us could operate at 100% expenses and not generate revenue for 70 days? Talk about a well thought out plan for southwest.
     

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