Southwest Airlines Success: A Case Study Analysis

  • January 2011

Ashutosh Muduli at Pandit Deen Dayal Energy University

  • Pandit Deen Dayal Energy University

Vinita Kaura

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The Strategy Story

A unique take on Southwest Airlines Strategy

Anyone who has studied business management either as a degree or as an elective would have definitely studied Michael Porter’s 5 Forces framework. This framework was first published in  Harvard Business Review  in 1979. The model is very much relevant in 21st-century business as well due to its deep 360-degree view of a business.

One of the 5 forces is called “Barriers to Entry” and more often than not either Oil & Gas or Airline industry would serve as an apt example of an industry with very high barriers to entry due to its high Capex and Opex requirements.

But wait, then with so many barriers to entry, why do airlines still bleed red? There are many reasons for this, but one of them is stiff competition with low-cost carriers, the 5th, and the framework’s central force (competition among the players).

Before we move on, the below is an interesting tweet response from Anand Mahindra, on being asked to buy the ailing “ Jet Airways ”.

Remember the quote: “If you want to be a millionaire, start with a Billion dollars and then start (buy) an airline!” https://t.co/dYRdwup3kK — anand mahindra (@anandmahindra) June 29, 2019

The US Airline Industry

Following the 9/11 attacks, the US airline industry has been through rough weather. 20+ airlines have filed for bankruptcy protection under Chapter 7. 60+ airlines have filed for bankruptcy protection under Chapter 11.  This list also includes the top 3 out of 4 airlines namely, American Airlines, United & Delta Air Lines, however they were able to exit the bankruptcy within a few years.

The landscape has been constantly changing with a high volume of mergers and acquisitions, resulting in changing market share statistics.

case study of southwest airlines

The graph above covering the period January to December 2020 showcases that the top 4 airlines constitute approx. 65% of the market share.

In this story, we are focusing on Southwest Airlines that was founded on the notions of the low-cost carrier but with its unique strategy has been profitable for the last 45 years in a row. 

The takeoff strategy of Southwest Airlines

Southwest Airlines Co. , typically referred to as Southwest, is one of the United States’ major airlines and the world’s largest low-cost carrier airline. The airline was established on March 15, 1967, by  Herb Kelleher  as Air Southwest Co. and adopted its current name, Southwest Airlines Co., in 1971, when it began operating as an intrastate airline wholly within the state of Texas first flying between Dallas, Houston and San Antonio. 

Most airlines back in the 1960s followed the most popular “Hub and Spoke” model for their operations.

Hub and Spoke model – As the name suggests, there is a defined hub from where the flights originate, and the destinations are the spokes.

The benefit of a hub and spoke model is that it has fewer routes, but the major drawback of this model is its rigidity, and if there is a slight change in the airline routing due to weather, etc., it can have cascading consequences to the other planned flights.

case study of southwest airlines

Point to Point model – Southwest, being a low-cost carrier, focused more on the point to point model and bought significant process improvements, in a way mastered it to achieve very high operational efficiency.

In the point-to-point model, each flight is a single journey. The origin and destination are connected via a single non-stop flight. The point-to-point model offers more travel options and flexibility as compared to the hub and spoke model.

For passengers undertaking further journeys, they will have to collect the baggage and recheck them for leg 2 of their journey. This model has considerably led to saved travel hours and done away with the necessity for connecting flights.

case study of southwest airlines

Key Differentiating Factors in Southwest Airlines Strategy

Southwest airlines is the third largest airline in the United States of America and arguably the biggest in the low-cost carrier segment across the globe.

So, was the operational efficiency gained due to the change in the flight operations model the only reason why Southwest airlines is the #1 low-cost carrier in the world?

NO, let’s understand what differentiated Southwest airlines strategy from its counterparts.

Customer Eccentricity

For Southwest, they keep the customers at the center of their business operations. They offer certain benefits to flyers which are not offered by other airlines, like

  • Southwest allows two checked-in bags, free of cost, unlike many of its competitors.
  • Flight change thirty minutes prior to the departure is allowed by Southwest.
  • Southwest offers free in-flight entertainment like Live TV, Movies, use of whatsapp and imessage. It offers Wi-Fi services at very nominal rates.

All these have resulted in Southwest being the airline with the least number of complaints, according to the Department of Transportation of the United States of America.

Only one type of aircraft

Many airlines have different types of aircraft in their fleet, but not Southwest. Southwest operates by using only Boeing 737 aircraft. It saves a lot of money by:

  • Training cabin crews and support staff on only one type of aircraft.
  • Maintenance of inventory of spare parts for one aircraft type.
  • In case of breakdown, alternate aircraft can be arranged immediately.
  • Its policy of not assigning seats helps tremendously as customers can take any available seat when boarding the aircraft, thereby reducing the boarding time. In the case of alternate aircraft also, this policy hugely benefits the airline reducing the turnaround time.

Right recruitment policies

Southwest stresses a lot on the customer experience and hence it is very imperative for the airline to hire the right kind of people. Southwest focusses on hiring people who have an attitude for serving customers.

Employees undergo various pieces of training which also includes cross-training. Training is heavily centered around team building and collaboration.

The Southwest Airlines case study is a lesson in cultural strategy. An organization built on the fundamentals of customer eccentricity, effective processes, and a dedicated team is meant to achieve success and overcome challenges. This model of exceptional customer service can help a business earn an impeccable reputation in the industry. That’s what makes the Southwest model uniquely priced, yet one profitable in this cruel airline industry.

Southwest’s ability to be different and not follow the herd—not to mention becoming America’s largest airline—can be traced in large part to the Airline Deregulation Act. Thanks to this act, Herb and Rollin realized their Vision and the traveling public benefits on every flight, every day. Gary Kelly, Chairman & CEO, Southwest Airlines

case study of southwest airlines

Vinit Joshi is Corporate Planning & Strategy professional with 15+ years of experience across renowned & diversified business groups. When not working or spending time with family, Vinit loves listening to a variety of music

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Southwest Airlines: A Case Study in Great Customer Service

The airline giant's reputation for exceptional customer service and employee happiness is crucial to its ongoing success.

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Table of Contents

Southwest Airlines serves over 126 million passengers each year, provides service to 121 airports across 11 countries and has maintained its nearly 72,000-employee roster with no involuntary furloughs or layoffs in its history. In addition to its commercial and financial success, Southwest Airlines is known for its excellent customer service. Southwest has built an impeccable reputation by putting customers first and ensuring its employees are content and financially secure.

This model of exceptional customer service can be extrapolated to fit the needs of almost any industry if you employ strategies that work for your business. We’ll explain why Southwest is so successful as a company and a customer service provider to help other businesses understand and implement its tenets. 

Southwest treats its employees well

Great customer service starts with happy employees. Southwest treats its employees well by backing individual employees’ decisions and providing everyone with quality employee benefits . For example, the company offers a 401(k) plan and matches contributions dollar-for-dollar up to 9.3 percent of the employee’s eligible earnings. It also offers a profit-sharing plan, an employee stock purchase plan, health and well-being rewards, as well as quality medical, vision and dental coverage.

In addition to benefits, Southwest also encourages professional development through in-person and online classes, mentorship programs, and even a Career Mobility Center that supports internal career advancement through advisement sessions and interview prep resources. The company also prioritizes community outreach, encouraging and incentivizing employees to give back to causes that matter to them.

Southwest makes excellent customer service its mission

According to a mission statement on Southwest’s website, “The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride and Company Spirit.” 

Southwest outperforms competitors in customer service

In its last survey of the airline industry from 2018, the Temkin Group compared nine U.S. airlines on the quality of their customer experience – the sum of all a customer’s experiences and interactions with a brand. The strategy of focusing on customer experience is built around the needs of the individual customer over the lifetime of the customer-brand relationship.

The Temkin Group’s survey ranked each airline on the criteria of functionality (how well experiences meet customer needs), accessibility (how easy it is for customers to do what they want to do) and emotion (how customers feel about the experience).

Southwest Airlines earned the highest score every year the Temkin Experience Ratings were published from 2011 to 2018, except for 2015. In the most recent rankings, the company received the highest score in the airline industry, 76 percent – 10 percentage points higher than the industry average score of 66 percent. 

Over the years, Southwest Airlines has maintained high ratings among customers, even amid a global pandemic and overall declines in passenger satisfaction. According to the 2023 J.D. Power North American Airline Satisfaction Study , Southwest ranked highest in customer satisfaction for a second consecutive year for the economy and basic economy segment.

How Southwest Airlines emphasizes the customer experience

Southwest Airlines takes the following crucial steps to prioritize the customer experience:

  • Southwest offers multiple avenues for customer support. Customer experience is no longer just an in-person interaction or a phone call. It’s now online, in live chat and more. In addition to multiple phone numbers for different customer service issues, Southwest offers live chat (via mobile app), email and a self-help resource center, allowing multiple touch points and opportunities to delight customers .
  • Southwest adapts to meet customers’ evolving expectations. The airline invested over $2 billion to improve the customer experience. From improved real-time travel communications to bag tracking to bolstered self-service options, Southwest proactively meets passenger needs to make traveling more convenient and comfortable.
  • Southwest empowers employees. Southwest takes care of its employees, which, in turn, helps employees take care of its customers. Providing robust financial and wellness benefits and ongoing career development allows Southwest’s team to perform at its best and effectively support its customers.

How to provide excellent customer service

All businesses should strive to achieve Southwest’s exceptional customer service. However, many of its specific strategies are tailored to the airline industry and may not work for your organization. Here are a few additional methods any business can implement to give its customers the service they deserve.

1. Be responsive to issues.

Nothing is more frustrating than being put on hold for over an hour, especially if you’ve already paid for a product or service. Remember that your customer relationships don’t end after money has been exchanged. These relationships are long-term commitments that must be cultivated over time.

If you don’t have the time to answer calls all day, consider staffing your business with more agents or outsourcing customer service calls. Ensure all customer service reps and outsourced service agents use one of the best CRM software platforms to ensure consistency and informed help. You can also streamline your communication channels and preferences to accommodate as many customer inquiries as possible. For example, it’s easy to set up a chat feature or an FAQ page on your website to avoid being overwhelmed by calls. 

With so many options available to help your customers, there’s no excuse for leaving them in the dark when they have an issue.

2. Communicate beyond complaints.

Responding to problems swiftly is vital to maintaining a high level of customer service, but communicating with your audience shouldn’t stop there. Starting a weekly email newsletter or using X (formerly Twitter) as a customer support channel are great ways to stay in touch with your base.

A simple “thank you for thinking of us” when a customer tags your brand on social media can go a long way. It’s a simple, cost-free measure to set your business apart as one that truly cares about customer service.

3. Get to know your customers.

Customers love a personalized experience because it makes them feel heard. However, to ensure 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.

Almost every customer service representative has some kind of script they must stick to, but there are opportunities to veer off-book and personalize the experience. You could ask customers what they’ve been up to lately or why they chose your company, or just find a way to make them laugh. If you’re willing to go that extra mile, it can be the difference between keeping a customer and losing them.

4. Keep a positive attitude.

When trying to keep a positive attitude toward the customer, it can help to inhabit a service persona. How you speak to your customers can sometimes be more important than what you say. This approach allows you to connect with the customer on an emotional level. You’ll understand their explicit needs and better understand their overall attitude toward you and the company. If you focus on positive thinking and a positive attitude, customers will likely respond in kind.

Danielle Fallon-O’Leary contributed to this article. 

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Pioneer in the Skies: The Case of Southwest Airlines

  • First Online: 29 July 2016

Cite this chapter

case study of southwest airlines

  • Kai-Ingo Voigt 4 ,
  • Oana Buliga 4 &
  • Kathrin Michl 4  

Part of the book series: Management for Professionals ((MANAGPROF))

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Southwest Airlines is a somewhat different example of a business model pioneer—and indeed, one may ask if the company is a pioneer at all: neither was Southwest the first to offer intrastate flights on its home market, Texas, nor was it the first to experiment with low-cost flights. But while the other companies were merely experimenting, Southwest developed a business model, which proved its sustainability over the course of more than four decades. By starting operations in 1971, Southwest faced from the very beginning harsh competition from incumbent airlines. This inspired the young company to create its very own business model—and unlike its main competitors at the time, the airline remains profitable until today. Winning this race made Southwest a prime example of a pioneer in the low-cost airline industry.

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Voigt, KI., Buliga, O., Michl, K. (2017). Pioneer in the Skies: The Case of Southwest Airlines. In: Business Model Pioneers. Management for Professionals. Springer, Cham. https://doi.org/10.1007/978-3-319-38845-8_14

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Southwest Airlines Is Playing with Brand Fire

by Adam Richardson

Southwest Airlines is often used as a case study for a well-run business: it’s consistently more profitable than its competitors, it’s very disciplined about how it operates, and its customers are happy. It also has a strong brand, built on the promise of low prices, convenience, and a no-frills-but-pleasant experience. But recent actions are starting to erode the brand and customer happiness, potentially creating a long-term risk.

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Southwest Airlines (A)

  • Format: Print
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case study of southwest airlines

Case Study: Profitability Takes Flight, Southwest Airlines Unique Business Model Unveiled

Southwest Airlines is a renowned American low-cost airline established in 1967 and has since become one of the industry’s most successful and profitable carriers.

With its headquarters in Dallas, Texas, Southwest operates an extensive domestic network, serving more than 100 destinations across the United States.

Significance of Profitability in The Airline Industry

Profitability is a critical aspect of any business, and the airline industry is no exception. Achieving consistent profitability is a significant challenge in an industry characterized by intense competition, volatile fuel prices, and economic uncertainties.

However, Southwest Airlines has managed to stand out from its competitors with its unique and highly successful business model.

Southwest Airlines’ Unique Business Model

Southwest Airlines was founded on providing customers with low-cost, efficient, and reliable air travel.

From the outset, its founders aimed to differentiate Southwest from traditional carriers by implementing a business model that focused on simplicity, operational efficiency, and a strong emphasis on customer satisfaction.

Critical Elements of the Business Model

Here are the key elements of Southwest Airlines’ prestigious business model:

Low-cost operations

Southwest Airlines has distinguished itself as a low-cost carrier by implementing various cost-saving strategies.

These include utilizing a single aircraft type (Boeing 737) to simplify maintenance and training, operating from secondary airports to reduce fees, and minimizing unnecessary frills such as assigned seating and in-flight meals.

High Aircraft Utilization

Southwest maximizes the utilization of its aircraft by keeping them in the air for a significant portion of the day.

Quick turnarounds, efficient boarding processes, and high aircraft utilization rates contribute to cost savings and increased revenue potential.

Point-to-Point Routes

Unlike traditional hub-and-spoke models that many airlines employ, Southwest’s point-to-point route system allows direct flights between smaller airports, reducing transfer times and increasing operational efficiency.

This approach also enables Southwest to serve niche markets and respond quickly to changing demand.

Customer-Centric Approach

Southwest Airlines places a strong emphasis on customer service and satisfaction. Southwest has built a loyal customer base with its “Bags Fly Free” policy, no change fees, and friendly customer service.

The airline strives to provide a hassle-free and enjoyable flying experience, differentiating itself from competitors.

Efficient Workforce Management

Southwest focuses on building a stable and motivated workforce. The company’s employee-friendly policies and positive company culture have resulted in high employee satisfaction and productivity.

The airline’s efficient workforce management contributes to operational efficiency and cost control.

Case Study: Southwest Airlines’ Profitability

Southwest Airlines has consistently reported profits for several consecutive years, even during industry downturns and economic challenges.

This remarkable achievement sets Southwest apart from many other airlines struggling to maintain profitability.

Factors Contributing to Profitability:

Many different elements are responsible for the continuous progress of the airline. Some of the critical factors that played a crucial role in Southwest Airlines’ profitability include the following:

Strategic Route Planning

Southwest strategically selects routes that align with its business model, focusing on high-demand and high-frequency routes.

This approach allows the airline to optimize revenue potential while minimizing operational complexities.

Cost Leadership and Operational Efficiency

Southwest’s relentless focus on cost reduction and operational efficiency has significantly driven its profitability.

The airline maintains a competitive advantage in the industry by keeping costs low and implementing efficient operational practices.

Revenue Management Strategies

Southwest employs effective revenue management strategies, including dynamic pricing and capacity management.

These strategies ensure optimal seat utilization and maximize revenue per available seat mile (RASM).

Strong Customer Loyalty and Brand Reputation

Southwest’s commitment to customer satisfaction has resulted in a strong brand reputation and customer loyalty.

Repeat business and positive word-of-mouth recommendations contribute to sustained revenue and profitability.

Challenges and Limitations of Southwest’s Model

Here are some challenges and limitations faced by one of the most successful Airlines in the United States. 

Vulnerability to Fuel Price Fluctuations

Like any airline, Southwest is exposed to the volatility of fuel prices. Increases in fuel costs can significantly impact the airline’s profitability, as fuel represents a substantial portion of its operating expenses.

Fluctuations in fuel prices require Southwest to employ effective fuel hedging strategies and closely monitor its fuel efficiency to mitigate risks.

Limited International Presence

While Southwest has been highly successful in the domestic market, its international operations could be more extensive.

The airline primarily focuses on serving domestic destinations, which may pose challenges in expanding its market reach and tapping into lucrative international markets where competition may be fierce.

Potential Risks of Focusing On the Domestic Market

Relying heavily on the domestic market exposes Southwest to potential risks associated with economic fluctuations, regulatory changes, and geopolitical events that could impact domestic air travel demand.

Diversifying its operations to include more international destinations could mitigate these risks.

Southwest Airlines’ Response to Challenges

Fuel Hedging Strategies

Southwest employs fuel hedging strategies to mitigate the risks associated with fuel price fluctuations.

These strategies involve entering into contracts to secure future fuel purchases at predetermined prices, reducing the impact of sudden price increases.

Expansion of International Routes

Recognizing the growth potential in international markets, Southwest has gradually expanded its global operations.

By adding more international destinations to its network, the airline aims to diversify its revenue streams and reduce reliance on the domestic market.

Mitigation Plans for Market Risks

Southwest monitors market trends, economic indicators, and regulatory changes to adjust its operations and strategies proactively.

The airline maintains an elegant approach, quickly adapting to changing market conditions and mitigating potential risks.

If you want to know further, an inclusive case study solution can help you the right way.

Southwest Airlines case study solution , written by experts, lets you take a comprehensive look into the airline’s history, profitability model, challenges, how they tackled them, and many other aspects.

Conclusion:

Southwest Airlines has established a unique and highly successful business model that centers around low-cost operations, efficient utilization of resources, and a customer-centric approach.

Its focus on simplicity, operational efficiency, and customer satisfaction has contributed to its profitability and competitive advantage in the airline industry.

Southwest Airlines’ profitability stands out in an industry often plagued by financial challenges.

The airline’s ability to consistently generate profits can be attributed to its distinctive business model, which enables cost leadership, operational efficiency, and strong customer loyalty.

Southwest’s success serves as a valuable case study for the airline industry. It highlights the importance of innovation, adaptability, and a customer-centric approach in achieving profitability and sustainable growth.

Other airlines can learn from Southwest’s strategies and consider adopting elements of its business model to enhance their own competitiveness and financial performance.

Read more case studies here .

case study of southwest airlines

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Solved Case Study of Southwest Airlines from “STRATEGIC MANAGEMENT: AN INTEGRATED APPROACH” 9TH EDITION BY HILL & JONES (CENGAGE LEARNING)

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case study of southwest airlines

hasan ahmed

This article analyzes the sources of Southwest Airlines' competitive aduantage using an integrative approach, employing economic analysis tools to illustrate the roles of commitment and organizational capabilities in delivering competitive advantage at Southwest. A framework is presented illustrating that much of the value Southwest generates is (1) created through employee needs satisfaction, (2) converted to customer and shareholder value via organizational capabilities, and (3) captured by the firm as a result of its cost advantage and superior service. This three-part framework may be applicable to other labor-dependent service organizations.

Elena Pavlova

Master Thesis

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More From Forbes

Organizational culture lessons you can learn from southwest airlines' debacle.

Forbes Coaches Council

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Consultant, Organizational Psychologist, Facilitator, Author, Speaker. President at Michael Couch & Associates Inc .

For years, Southwest Airlines’ "Employees First" approach to culture was considered the driver behind Southwest’s success in terms of lowest number of customer complaints, employee retention and years of consecutive profitability. But during the 2022 holiday season, it was revealed that employees had complained for years about scheduling systems and communications. The flight attendant union's president called the treatment of flight crews during the holidays “despicable,” adding that “the many years of failure by management, despite many unions' demands to modernize, has left flight attendants fatigued, stranded, hungry and cold.”

The core of Southwest’s culture was promoted as the active involvement of employees and treating them well—putting employees first. Obviously, something in the airline's cultural alignment and clarity went awry. While Southwest may recover from this debacle, it will undoubtedly become a case study of the role that organizational culture plays in growing any business.

Southwest's Failures Highlight Key Factors In Workplace Culture

It seems like, early on, Southwest understood that involving employees is a critical component of culture that drives ownership and accountability. Employee involvement must align with culture factors related to a clear strategic direction, a compelling vision and effective goals and objectives. When this is reflected in workplace practices—such as giving employees the authority to manage their own work, placing value on working collaboratively and investing in employee development—business results can soar.

The airline's holiday debacle revealed two other gaps in its culture: consistency and adaptability. Consistency, often reflected in work processes, relates to the organization’s ability to execute by working together to achieve common goals, easily reconciling differences and having a clear set of expectations. This leads to a strong ability to adapt, allowing organizations to effectively translate the demands of the business environment into action. They can anticipate future customer needs, create innovation and new capabilities from market signals and effectively create change. Based on its employees' revelation, Southwest's culture may have never effectively adapted to the demands of the marketplace.

Companies Must Refresh, Not Resurrect, Their Cultures

After this colossal impact on its business, Southwest may struggle to fix its culture and earn back its customers. That's why it's much more effective to be proactive and intentional about creating, sustaining and leveraging a clear and aligned culture .

In fact, we saw this during the pandemic. Organizations that went into that crisis with clear, aligned cultures were much more resilient and able to bounce back—and forward. Here are three strategies for ensuring your workplace culture is strong and built to last.

Assess Culture

The time-tested adage “You can’t improve what you don’t measure” applies to building culture. If you ask each of your leaders how they define "culture," you'll likely get as many answers as you have leaders. Conducting a culture assessment will give you a solid foundation on which to build. It will also get everyone on the same page about what culture is and how it relates to business performance.

Follow The Data

Dan Denison, a culture researcher and colleague of mine, believes the purpose of gathering culture assessment data is to start honest, objective conversations that lead to thoughtful actions resulting in improved performance. In some cases, the assessment results raise more questions than answers. Creating focus groups or culture action teams is a way for organizations to then take a deeper dive and generate targeted recommendations.

Test Against Strategy

Employees' perceptions related to mission, strategy and vision should be part of the culture assessment. My favorite questions to start honest conversations among leaders reflecting on assessment results are “What in the culture assessment results drives or supports the implementation of our growth strategy?” and “What in the results is a barrier to successfully implementing our growth strategy?” The answers can be spun into action plans focused on establishing new priorities, habits and systems to clarify and align your culture.

What we've learned from the Southwest Airlines situation is that workplace culture must always remain a priority—especially if that's integral to an organization's image. As such, I’ll close with one of my favorite quotes from Louis V. Gerstner Jr., the former CEO of IBM: “Culture isn't just one aspect of the game, it is the game. In the end, an organization is nothing more than the collective capacity of its people to create value.”

Forbes Coaches Council is an invitation-only community for leading business and career coaches. Do I qualify?

Michael Couch

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How Southwest Airlines used art and science to increase demand forecast accuracy

Southwest airlines is benefitting from increased accuracy when predicting airline demand, with the help of machine learning and customer choice modeling. .

The pandemic has required new scheduling techniques to be developed, with airlines no longer being able to rely primarily on historical schedules. In 2020, Southwest took on the challenge to identify and increase scheduling and revenue opportunities in a world that has changed enormously.

Amadeus SkyCAST is a key element in Southwest’s network planning decision-making process due to the solution’s high forecast accuracy and flexibility. The forecasting tool helps airlines find that perfect balance between schedule optimization and the highest revenue potential – no small feat for airlines with thousands of different flight combinations. Airline planning requires a careful balance between art and science to be successful. 

Southwest Airlines can assess numerous 'what-if' scenarios in a matter of hours - allowing new growth opportunities to be identified - even during an uncertain and volatile period. Accurate forecasting has helped to limit the financial impact of the crisis while maintaining the high level of serice that Southwest customers expect. 

This case study will explore:

The importance of customer choice modeling and machine learning for accurate forecasting

Special calibrations during COVID-19

Market size estimations

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Home > Southwest Airlines Soars with SAFe: 5x Faster Time to Market

Southwest Airlines Soars with SAFe: 5x Faster Time to Market

case study of southwest airlines

Southwest Airlines is famous for its employee-first culture, dedication to customer service, and sense of warmth, friendliness, and fun. And when it comes to meeting the urgent demands of technology development in a highly complex logistical environment, a thriving culture is just the start to meeting the challenge.

To live up to Southwest’s purpose of connecting people to what’s important in their lives through reliable, low-cost air travel, Southwest began its Agile transformation in 2018 in operations. The fantastic results led to SAFe ® adoption throughout Southwest.

Now four-plus years into their Agile transformation, more than 2,000 Southwest employees collaborate cross-functionally across the organization.

Quick Facts:

  • Operates at more than 120 airports across 11 countries worldwide
  • Carried 126 million customers in 2022
  • Operates more than 4,000 flights per day during peak season
  • Started SAFe transformation in 2018
  • More than 2,000 employees involved in SAFe across reservations, customer experience, crews, scheduling, training, aircrafts, ground operations, maintenance, and more

Key Outcomes:

  • Streamlined the number of steps and handoffs between business and technology and made them more predictable, saving time and money.
  • By adopting SAFe at the portfolio level, Southwest went from 7–9 months of planning in 2017, plus variable building, testing, and deploying timeframes (see timeline below) to releasing every iteration in 2020 
  • From 2018–2020, they saw increased deployment success and 5x faster time to market  (28 releases with 45% deployment success in 2018, to 349 releases and 93% deployment success in 2020)
  • Experienced better alignment around business value while measuring greater than 80% of business value delivered

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case study of southwest airlines

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