Innovative Business Model of South West Airlines

This article discusses the innovative business model of South West Airlines and its value proposition strategies including the use of Boeing 737 aircraft, minimum time gap between departures and arrivals, use of regional airports in secondary markets, and terrific services in customer care. The article also highlights the core resources and activities needed to execute such value proposition strategies.

Running Head: INNOVATIVE BUSINESS MODEL OF SOUTH WEST AIRLINES
Innovative Business Model of South West Airlines
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Table of Contents
Introduction................................................................................................................................2
1. Value Proposition Strategies implemented by South West Airlines..................................2
1.1. Use of Boeing 737 Aircraft.........................................................................................2
1.2. Minimum Time Gap between Departures and Arrivals..............................................2
1.3. Use of Regional Airports in Secondary Markets.........................................................3
1.4. Terrific Services in Customer Care.............................................................................3
References..................................................................................................................................5

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Introduction
The South West Airlines is a low cost airlines that is in operation in the United States
of America. It is headquartered in the city of Dallas in the American state of Texas. South
West Airlines is well known for making air travel affordable and easy for each and every one
of its customers. This section details the value proposition strategies undertaken by South
West Airlines to improve its business, with a special focus on building positive customer
relationships. The core resources and activities needed to execute such value proposition
strategies are discussed in the process.
1. Value Proposition Strategies implemented by South West Airlines
1.1. Use of Boeing 737 Aircraft
One important value proposition strategy that has been undertaken by South West
Airlines to improve its business is to make use of Boeing 737 aircraft’s only for its
operations. This is a one model fleet and it is capable of delivering structural efficiencies and
operational savings both at the same time. While other airline companies spend millions of
dollars in training technicians as well as stocking parts for numerous types of aircraft, South
West Airlines makes do with the cost effective Boeing 737 model (Holloway, 2017).
1.2. Minimum Time Gap between Departures and Arrivals
South West Airlines has made sure of the fact that departures and arrivals are only
thirty minutes apart from one another. While the industry average in this respect amounts to
forty five minutes, South West Airlines ensures that the time gap between its arrivals and
departures is no more than thirty minutes, thus saving the time and the energy of its

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passengers considerably. The time that is saved also implies the use of fewer planes as well
as fewer staff hours of operation (Gunarathne et al., 2018).
1.3. Use of Regional Airports in Secondary Markets
Another crucial value proposition strategy of the South West Airlines company that is
responsible for its business success, is the decision to opt for regional airports in mostly
secondary markets for the purpose of achieving a higher turnaround. In the city of Dallas for
instance, the South West Airlines company flies out from the Love Field airport instead of the
well known Dallas Ft Worth airport. The gate fees tend to be quite inexpensive at regional
airports where the flight schedules tend to remain more on time than the flight schedules in
larger airports. Also, it is important to note that most of the South West Airline flights avoid
layovers quite easily as these make their way directly to the desired destination instead of
halting at transit points. The financial savings that are ensured as a result of decisions such as
these go a long way in keeping the costs that are incurred by South West Airlines far lower
than the costs incurred by its competitors in the airline industry (Kumar & Pansari, 2015).
1.4. Terrific Services in Customer Care
South West Airlines is particularly well known for its top notch customer care services. It
manages to keep its customers happy by, first and foremost, keeping its employees happy.
South West Airlines offers its employees paid maternity leave, with new parents being given
as many as twelve weeks of paid leave. Work schedules are also made as flexible as possible
for employees giving them every possible incentive to serve their customers well. The
customers of South West Airlines are kept satiated and happy through regular flight offers
and flight ticket discounts. Passengers can fly over short distances at incredibly low prices
when making use of an airlines company like South West Airlines. In addition to reduced air
prices, and heavy air ticket discounts for frequent travelers, there are offers made on

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passenger luggage as well. Passengers can get to fly their first two bags for free when using
South West Airlines, without having to pay any freight charges. This is a huge benefit for
customers who need to travel short distances by air on a regular basis. The customer care
services offered by South West Airlines are easily accessible over the phone via a toll free
number and over email. Customers can even reach out to the South West Airlines executive
on live chat. The South West Airlines customer care representatives are well behaved and
polite and go out of their way to look into customer needs and requirements as best as they
can (Lawton, 2017).
There is of course a downside to the value proposition strategies that are implemented
by South West Airlines. Fixed seats are not assigned and the boarding process is quite
chaotic. The safety presentation carried out by the airline authorities at the time of takeoff are
also quite below average.

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References
Gunarathne, P., Rui, H., & Seidmann, A. (2018). When social media delivers customer
service: Differential customer treatment in the airline industry. Management
Information Systems Quarterly, 42(2), 489-520.
Holloway, S. (2017). Straight and Level: Practical Airline Economics: Practical Airline
Economics. Routledge
Kumar, V., & Pansari, A. (2015). Measuring the benefits of employee engagement. MIT
Sloan Management Review, 56(4), 67.
Lawton, T. C. (2017). Cleared for take-off: structure and strategy in the low fare airline
business. Routledge.