As the company continues to grow it will be found in more and more places. 3. Why or why not are the case companies successful? Southwest has been successful because it found a niche and a strategy for a long time no one could compete with. It had done and continues to do cheap short haul flights with little frills very successfully.
Reviews from clients: cherrymar said: "the flight was very good and exciting and also very cheap. The crew helps us a lot for our comfort. I will try using their airways again". Becky from England said: "Lion air flight was very comfortable. And also the tickets prices are really good so I recommend it ".
And Virgin is no different, which is clearly seen in the cost of running an airline where almost a third of the cost is fuel, so every bit of technology that can help improve the fuel consumption, improves profits. Quality expectation… this is a fundamental task for all companies ensuing they are delivery on their promise. For Apple they just simply known to be the best at it. Just having the best supply chain distribution and logistical model and process will mean nothing if the quality expectation is not met. This is no different for Virgin, whilst they could get away we some quality issues as a low cost airline, when they became a full service airline expectation, quality and the consistency of that quality was paramount.
Brand name has made the customers stick to Ryanair as it fulfills all their needs and wants. Even though this company has suffered severe financial crisis in 1990, after restructuring in which they adopted the Southwest Airlines business model, Ryanair became the pioneer of the low-fares model in Europe. On the other hand, another strength that can be highlighted from this airline is that they are charging for ancillary services. Ryanair also has been categorized as the “Ancillary Revenue Champs’ by the 2010 Amadeus Guide to Ancillary Revenue. Although they charged for the services, these attract more customers as they are available at single platform.
easyJet uses cost advantage as well as network positions in strong markets to deliver low fares and operational efficiency on point-to-point routes, with their people making the difference by offering friendly service for their customers. Southwest Airlines The airline, a U.S. budget airline, was established in 1967 by Herb Kelleher as Air Southwest and then adopted its current name, Southwest Airlines, in 1971 where it began operating as an intrastate airline wholly within the state of Texas. Southwest Airlines is the largest airline in the world by number of passengers carried per year (as of 2009). It maintains the third-largest passenger fleet of aircraft among all of the world 's commercial airlines. According to the U.S. Department of Transportation 's Bureau of Transportation Statistics, Southwest Airlines has carried more customers than any other U.S. airline since August 2006 for combined domestic and international passengers.
Southwest Airlines has been operated for 47 years from 1967 to now. It is the major airline in United States. According to the report from International Air Transport Association (2014), it is stated that Southwest Airlines carries most local passengers throughout all of the airlines in US. The culture of this company is similar to the one in Singapore Airlines which is using low fares to operate lots of flights (Yang et al., 2014). Although it is not luxury, the company tries very best to offer the excellent service to the customers.
SOUTHWEST AIRLINES The United States of America is a top destination for tourism, and according to the Readers ' Choice Awards, it is the third best country to visit. The wide variety of attractions and activities spread in the innumerous cities of this large country, created the need of an efficient transport network to facilitate travel within the US. One of the offers is the flight connections, mainly through low-cost companies. In 2016, the North American airlines industry registered a market value of $186.8 billion, as a result of the 940 million passengers carried. In such competitive industry, players must stand out with innovative strategies, paying even more attention to “the management of customers, who are not simply consumers of the service but can also be integral to its production” (Frei, 2008).
Southwest has posted profit for thirty-five consecutive years not only because of their business shrewdness but also the principles and philosophy they followed to treat customer and employees fairly. The leaders of this company inspire loyalty by communicating openly to their employees and encourage feedback from them as they realize that their voice matter for success. The company also encourages its employee maintain life and work balance and implement new programs to foster continuous leaning among its employees (Cooper & Looper, 2015). Organizational Commitment As a leader in the airline industry, the growth of Southwest can be attributed to their hundred percent commitment toward customer service which is evident from their mission statement of putting customer satisfaction at the forefront. Their commitment to customer service is evident from the fact that when all the domestic carriers charge baggage fee Southwest is the only company which allows free checked in baggage with certain limitations.
It was also awarded the “world’s new leading airline in terms of its safety record” from JACDEC Airline Safety Ranking 2015. Besides, it was awarded as the “Best Customer Service of the Year” from HKIA Customer Service Excellence Program 2014 (Cathay Pacific, 2015). Cathay Pacific offers passengers checked baggage, in-flight entertainment, beverages, meals and comforts like blankets and pillows in the ticket price. The seats have more recline than a low cost carrier and more leg room generally. It has a long history and are flag carriers for Hong Kong (Airline Ratings, 2015).
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