Presentation Topic
Southwest AIRLINES
Operations Strategy

TABLE OF CONTENTS
Operations Strategy Introduction
01 02
03 Process Design of Southwest Airlines

Operations Strategy
Operations strategy specifies the means by which
operations implements corporate strategy and helps to
build a customer-driven firm. It links long-term and
short-term operations decisions to corporate strategy
and develops the capabilities the firm needs to be
competitive. It is at the heart of managing processes and
supply chains.

INTRODUCTION
Southwest Airlines is an American low-cost airline
company that was founded in 1971. Southwest Airlines is
the largest and the most successful airline in the United
States and throughout the world by number of passengers
transferring. Southwest Airlines is well known for its total
quality improvement system usage. Basically, the
operations management systems at the airline company
include an aspect of cost, dependability, speed, quality, and
flexibility.

 Cost
 Quality
 Flexibility
 Analysis
Process Design of Southwest Airlines

01
Cost
Southwest Airlines

Process Design of Southwest Airlines
Cost,
The Only Large Low-Cost Airline
Southwest Airlines focuses on offering the lowest prices
for the most popular routes, being the only large American
airline that can actually compete on price, even matching
prices if a customer finds a lower one is another airline. To
achieve this unique advantage, the whole Southwest
Airlines Business Model has been built around low
operating costs. The company owns a few aircraft types,
services in small and secondary airports (with lower
charges), and a high airplane utilization, with short-haul
flights and quick turnarounds. Southwest is the only large
airline that can compete on price.

Quality
02
Southwest Airlines

Quality
Great Deals On Flights
.
Re-book For Credit If
Flight Price Goes Down
.
2
1
No Change Fees
On Their Tickets
3

Process Design of Southwest Airlines
1. Great Deals On Flights
Southwest Airlines is the largest low-cost carrier and has
relatively cheap flights. They’re always having sales and
promotions going on throughout the year.
2. Re-book For Credit If Flight Price Goes Down
Another nice thing about Southwest is that if you book a
flight and the rate for that flight goes down, you can call
them and re-book to get a credit in your account for the
difference.
3. No Change Fees on Their Tickets
They have no change fees on all of their tickets. This is
great if something comes up and you need to re-book
your flight! Also, considering the current economy,
having the option to change plans is ideal.

03
Flexibility
Southwest Airlines

Process Design of Southwest Airlines
Flexibility,
Southwest Airlines’ simple and flexible policies and
procedures. For example, the company allows the
passenger to cancel a reservation up to 30 minutes before
departure — and the customer keeps the funds from
cancellation for a future trip.

04
Analysis
Southwest Airlines

Process Design of Southwest Airlines
Analysis,
Get to know your customers.
Customers love a personalized experience because it
makes them feel heard. However, to make sure that
the personalized experience stays positive, you
should understand the customer’s wants and needs.
Maintaining this mindset will help ensure the
customer trusts you and your company in the long
run.

THANKS
Southwest Airlines