Operation management - Essay Example

conomic crunch has made customers to shrink their budgets thereby preferring airlines that charge relatively less than others one of them being Southwest Airlines. This airline is an example to many the world over due to its consistent profitability streak since its establishment. Southwest Airlines is one of the most profitable and respected airlines in the world. It is a no-frills airline having been established in 1971 as a low cost choice for Americans. It has its base in Dallas, Texas and it serves more than 85 million passengers annually (Southwest 2011).

Its net income is well over 100 million dollars a year which it uses for expansion and other strategies. During its establishment the airline had only 3 aircrafts but it currently has a fleet of over 500. All these aircrafts are from Boeing and they help the airline to traverse the US skies while serving more than 70 cities (Southwest 2011). Due to its point-to-point strategy it records one of the highest numbers of flights at 3,100 per day. For it to support these services it has employed 35,000 people many of whom are able to multitask in various departments which makes them some of the most highly paid in the American airline industry.

Considering the huge customer base and the demand for its services, the airline has done pretty well as it currently stands to be the best in customer service in the US airline market. The company management has for decades managed to stick to the low cost initiative by minimising operational costs and improving on efficiency. Unlike its rivals Regional Airlines and AMR, it has all along charged low fares and offered simplicity in its service range. The above information is summed up by the airline’s mission statement which partly states; The Chief Executive Officer Gary Kelly who is also the President is following his predecessors by ensuring that customers receive the best service and utmost attention from the company staff.

This has been possible throughout the years