April 25, 2020
The year 2001 was the most difficult year for the airline industry in the worl; this is because of the terrorist attack which occurred in the September 11 2001. It affected the operations of the airline industry and even cost other airlines to close. The passengers greatly reduced in nimber which affected the operations and financial statements of many companies in the world. South West Airlines, which hitherto had been recording a steady growth for 30 consecutive years, was also greatly affected by the terrorist attack. Like other airline industries, there were massive layoffs to curb with the changes in the airline industry (Getter, 2005).
What made South West Airlines to experience profits even when others were experiencing hard times financially was due to the fact that they had strict value proposition. They have always been the best in price and convenience. They also treat their employees well. They also are prepared for the future in everything they do. They have a no-layoff policy. This has helped the airline company because this translates to the fact that the employees are always happy and the managers will not end up employing many people. Some of the strategies that have taken this Airline are captured in the sections that follow. When this Airline started operations in the United States, it changed the way people viewed air travel. They strictly observed operational efficiency (Getter, 2005). Each of the practices that they observed was hinged on this value. This made this airline to be ahead of the competition. One of the efficiencies is the fact that they had point-to-point flying. This ensured that the travelers were at their utmost convenience. There was faster turnaround due to this. They also had reusable boarding pass, which made their expenses low and to cap it all, they had high number of frequencies. They had a culture which accommodated each of the staff. The working culture also enabled the people to cooperate with each other.
The management should restructure the staff so that they have optimal performance in the company. Employees are the most important assets in any organization. They management should therefore make sure that the employees are well taken care of in the welfare so that they have whole concentration in whatever they do. They should also make sure that the costs are tremendously reduced through the exploitation of online strategies like reducing some expenses like ticket booking through the use of Internet ways. This was so that they will cut some costs which are unnecessary (Getter, 2005).
The Airline should resume to their growth rate which they experienced in the year 2002. This should be the case as the Internet poses to bring some enormous opportunities for the Airline Industry. The Internet has not been fully utilized. They should be the market leaders in utilizing this.
The bankruptcies that are being experienced in the airline have some implications for the airline industry. One is the fact that there new entries into the airline industry and they may position themselves to benefit by attracting the clients from this airline. Virgin Atlantic is one of the airlines which are positioning themselves strategically in the market to take advantage of the airlines which could not survive the terrorist attack. The bankruptcies that are being experienced in this airline should sound warning alarm to the management and the directors of this airline.
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