brody jenner dating laguna beach star - Updating airline technology

According to a recent HBS Case Study, southwest airlines is the “most heavily unionized” US airline (about 81% of its employees belong to an union) and its salary rates are considered to be at or above average compared to the US airline industry.

The low-fare carrier labor advantage is in much more flexible work rules that allow cross-utilization of virtually all employees (except where disallowed by licensing and safety standards).

updating airline technology-45

Updating airline technology

This practice consisted of selling the ticket to other travellers (often at discount prices), after which the seller accompanied the buyer at the time of departure to the airport.

Here, the original owner checked in under his name and provided the airline with the buyer's baggage.

Southwest’s cost per booking via the Internet is about $1, compared to a cost per booking through travel agents of $6 to $8.

Key competitive advantages: * Low Operational costs / High Operational Efficiency * Award winning customer service * Human Resource practices / Work culture Operations Analysis – Competitive Dimensions: Southwest clearly has a distinct advantage compared to other airlines in the industry by executing an effective and efficient operations strategy that forms an important pillar of its overall corporate strategy.

Its first flights were from Love Field in Dallas to Houston and San Antonio, short hops with no-frills service and a simple fare structure.

The airline began with one simple strategy: “If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline.” This approach has been the key to Southwest’s success.

Labor Costs The labor costs for Southwest typically accounts for about 37% of its operating costs.

Perhaps the most critical element of the successful low-fare airline business model is achieving significantly higher labor productivity.

A ticket is generally only good on the airline for which it was purchased.

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