Southwest Airline Report

Southwest Airline Report
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Southwest Airline Report
History, Products and Financial Data of Southwest Airline
Southwest airline was founded in 1961 by Rollin and Herb Kelleher to serve the cities in
Texas. The airlines' incorporation faced legal battles from other existing airlines in the region,
but its existence was upheld in December. The southwest airline targeted northern areas of the
united states at the time of start. The southwest airlines carry over fifty million passengers from
regions of Northeast, Southwest and all other parts of the united states. Southwest Airlines has
managed to curb competition from other airlines in the region such as the Transtar Airlines and
Morris air the leading airlines in the western areas of united states (AvStop 2014). The Airline
has a profit sharing plan whereby the employees have total ownership of about ten per cent of the
stock of the company. Eighty per cent of the company is unionized, and all the pilots in the
company are represented in the Southwest Airlines Pilot’s Association.
Customer Loyalty Strategies and Programs
To create and maintain customer loyalty, Southwest airline does not charge any cost to
passengers who wish to change the direction of their flight. If for instance a passenger books the
wrong ticket decides to change it, there is no any fee that the passenger is required to pay the
company for change of ticket. The Airline also has an offer of not charging the first two luggage
of a passenger. The southwest airline offers prices that are affordable to most of the customers in
the united states compared to other airlines in the region.
The company has a policy of notifying their customers about any cancellations, delays
and diversions. The company uses an automated system to notify its customers on changes
happening concerning booked flights. The company also has mechanisms which ensure that the

luggage of the customer is delivered on time. The company has a policy of refunding money
promptly in cases of cancellation according to the form of payment and rules of payment
(Southwest 2014). If the ticket was purchased with a credit card, then the refund will be done
through the card. The customer service airline number is always available for consultation for
customers who may want to seek help in the booking of the ticket and other services offered by
the organization. The use of computerized systems in their channels is one of the ways the
company uses to enhance customer loyalty in the airline industry (Wyrod&Biesok 2018).
Customers prefer airlines which offers their service with a difference, especially those with a
computerized digital system that makes them more comfortable while moving in the airports.
The southwest airline company has a social care unit team, which works every hour of
the day and handles all the cases concerning the customer service providence. Southwest Airline
customer service has come up with a process with four steps for caring for the customer. The
process for dealing with customer care involves welcoming of the customer, identifying the
problem the customer has, engaging in research to get more information about the issue of the
customer and finally giving a solution to the customer about the particular question the customer
has (Gingiss 2016). The Airline has a policy of providing agent responses to the customer within
the shortest time possible. The customer service team manager also reviews the answers that the
customer gives about the response time of the team. The customer service team seeks to find
whether the response they are giving to the customers is satisfactory and whether it is helping
them in resolving the problems they have. The Southwest Airline team account is integrated in a
manner that the customer can connect their twitter to the flier account and hence be able to
receive direct communication from the customer.

The customers with a disability who comes for service with the southwest airlines are
required to give notice of the need to assistance in advance; this enables the social care team at
the company to be able to prepare better according to the number of customers who may require
special assistance during and after booking of the flight. The Southwest Airline has an assistance
link on the passengers' webpage where the customer provides information about his case of
disability before booking a trip with the southwest airline (Southwest Airlines 2014). The Airline
has an option for managing reservation in exceptional circumstances concerned with a disability
to enable the Airline to manage bookings for cases needed. A disabled customer has a privilege
of advising the customer authority on the best time for him or her to move.
Customer Value Equation in Southwest Airline
Customer value refers to the perception of what the product is value to the customer
compared to other alternatives which may be available to the customer (Mahajan 2017). The
southwest airline company has employed a strategy of charging the low cost to the customers to
keep any competitor away from the market dominated by Southwest airline. The Airline has
been able to do better than most of the competitor as a result of employing the low price
strategy(Maggiore 2017). The company has been able to save a lot of it cost while at the same
time maintaining excellent service to the customers by only flying one type of aeroplane Boeing
737s, this spares the company from using its resources in stocking many kinds of planes.
Southwest airline always flies directly to destinations without passing through other units.
Southwest Airlines’ one method of ensuring it has reached and served right the customers is by
first anticipating on the need of the customer(Lucnooren 2017).The company employs a
customer-centric way of satisfying the needs of the customers. The company has adopted a