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Employees are the No. 1 customer
Keywords:
Airlines, Organizational culture, Quality management
Southwest Airlines have the combined market capitalization of all other US-based airlines put together. How have they accomplished this? The economic climate over the past four years has not been kind to airlines, so how has the company which did not lay off any staff following September 11, 2001, remained top of the pile? By seeing their employees as the top customer, allegedly.
Southwest: a brief history
Southwest was founded in 1971 by Herb Kelleher and Rollin King as a low cost airline concentrating on short-haul flights of less than 500 miles. A mission statement was adopted in 1980, a dedication of customer service delivered with "a sense of warmth, friendliness, individual price, and company spirit." A statement was also commissioned for the employees:
We are committed to provide our employees a stable work environment with equal opportunity for learning and personal growth. Creativity and innovation are encouraged for improving the effectiveness of Southwest Airlines. Above all, employees will be provided the same concern, respect, and caring attitude within the organization that they are expected to share externally with every Southwest customer.
This mission statement is still carefully followed today, over 24 years later. It is clamed that those traveling with Southwest notice the difference in the employees compared to other similar airlines. The aim of Southwest is to provide affordable air travel to those passengers who usually drive rather than fly. Southwest's average flight is 50 percent less in length than it's major competitors, and the average distance flown is less than 500 miles. It is presently the fourth largest airline in the USA in terms of domestic passenger miles flown, and presently serves 59 airports in 30 states. In 2001, Southwest's stock price increased 29 percent per annum for the previous ten-year period. The employees (referred to as "people" by Kelleher) have never gone out on strike (a statement to be proud of in the current climate). The culture, referred to as "goofiness" by some, allows its people the freedom to travel economically, obtain financial security, work and have fun at the same time, and make a positive difference within the company. There are no rigid rules within the...