Strategic Planning And Business Management Commerce Essay


South-West Airlines was duly incorporated as the Air Southwest in the year of 1967 by Herb Kelleher and Rollin King. Southwest airlines were developed by the mutual strategies of the formal airlines. As per the records, southwest are the largest airlines with low rates and high passenger travel airlines in United States of America. [8] Southwest has maintained the 3rd biggest passenger fleet aircraft in the world. Southwest airlines located at Love Field, Dallas Texas where more than 3000 flights daily will serve in the transportation. According to the United States of America records none other than southwest airlines carried out more passengers including international and domestic since 2006. Southwest is the most profitable airlines in the world with the consecutive performance since 37 years. [1] [16] Southwest's business model, which involves in the most efficient organization structure and operational management process in efficient airlines business levels. The quick and short trips with secondary airports at major markets and operate with only one flight Boeing 737 has increased their successful capabilities. As per the business model, one of the successful business model which most of the companies like Easy Jet, Ryan air are now running over their business. In the year 1971, airlines name was changed to South West Airlines and first flight was traveled from Dallas to Houston with low Fare structure which leads for their business growth. The Actual service of the airlines was started on June 1971 with three 737-200 flights. And the forth one started in the same year September month. Below table shows the Fleet of the Southwest Airlines up to the date December 31st 2009. [1] [2] [15]

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Southwest Airlines fleet





Purchase Rights



Launch customer

Largest operator

Blended Winglets


Boeing 737-300








90 of 172 are

Short/medium haul

Boeing 737-500









Short/medium haul

Boeing 737-700









All routes

Organization Structure

Organization structure is nothing but the operational levels and authorities. The establishment of the organization and functional process will be done with the business model and strategic planning. Described with the other organizations, southwest is functional one. The 3 layered management process in still continuing in Southwest. Official procedure is somewhat showed the negative impact on the policies. From the commencement stage onwards Southwest tried to be moving forward step by step. But later on the changes made employees decentralized. As per the situation need to active this. To achieve this need to establish service for more destinations per year step by step. [7] [9] Top Management has to be considering about the various things like reliability, quality, feedback, communication and action. Employees got support from their management. The native thing is employees can exchange job for one day with their colleagues. This leads the employee's motivation in high range and acceptable. The On board journey is also the greatest thing in airline industry which achieve the passenger's attention. Management informed al the non financial and financial results of the company to employees. This leads to employees to think and take their own decisions and business strategies about current company trends. [21]

Business Strategy

Business strategy is nothing but the way they doing business with intellectual utilization of opportunities. Southwest is utilizing the opportunities from long time. Since 1978, company is moving towards the goals and objectives with employee orientation and blue ocean strategy. With these strategies, southwest is getting high profits and maintaining the reliable service to the customers. [22] The human resource practice is also moving towards the business strategies. Business Strategies basically depends on three main factors they are Financial, Operational and Marketing Strategies. Strategies depend on the functional operations in airline industries. Southwest has most of the functional operations on scheduling, cost effectiveness and management. Depends on the various aspects these strategies will change often. [10] [21]

Marketing Strategy

Southwest marketing strategies entitled with the low cost fares concept. Low distance, quality as per cost and maintaining reliability are basic things which are similar to the regional airlines model. Based on the fare prices and quality of services they designed various marketing strategies. Their benefit pus plans to the employees also got some what good response according to marketing agencies. [16] They make southwest airlines in a possible compete manner to achieve heights in future. Southwest totally got more than $114 million profits in 2006 based on the marketing teams. Southwest spend a lot for their marketing approaches. They spend total one year revenue as the marketing cost, according to that they became no one in airline industry. They stable plans and changes in organization intend the possible growth with marketing. Only with the cost reduction, customer service and low fare prices are the key factors in marketing. [22] [44] [1] [5]

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Financial Strategy

Financially southwest is very strong because of the consecutive profits from 32 years. The main objective of the southwest is to provide service by transportation for maximum no of people with short distance travel. Travel schedules with high frequencies and low fare prices and stable marketing. More than 2800 flights travel short distances in a day within 29 states and cities around 55 in figure. For the point to point trips they consume the fuel, maintain the flight neat and clean. The direct routes with nonstop services will increase the profits; reduce the timelines etc. with the growth in the business southwest make a change in buying more flights and maintaining more possible services to other cities also. They invested more than 30% profits consecutively on growth of the business. [2] [17] More than 20% profits on employees benefits. Totally they are achieving consecutive growth from past 32 years with their financial strategies. Reduce the cost by increase the max no of times transportation and usage of same Boeing 737 flights. Financially southwest is strong enough due to the sustainability in planning, organizing and execution. [29]

Operations Strategy

While coming to the Operations strategy, southwest is concentrated on maximum transportation facility which Available services to maximum no of passengers in a day. They operated this through planned schedule in organizing arrival, departure, fuel consumption, timelines, turnaround time, flexible work hours of employees and hospitalization facilities. [27] than 3 hours on the time of average airline industry they operated flights per day and maintain the time lines possibly. The key factor is using the same model flights, maintaining low fare prices and sustainable growth in the year 2003. They got more profits in 2003 due to maintenance and quality of service. Now also southwest continuing same strategies like people, service and quality themes. [21]

SWOT Analysis

SWOT analysis is nothing but analysis the various components like Strengths, Weaknesses, Opportunities and threats of the organization. The basic formula of the SWOT analysis is to find out the organization structure and analysis the current market trends with possible outcomes. Analysis the overall organization situation according to the current business trends as well as competition. As per the Southwest Airlines, need to review the business trends, business model, operational process and current market trends. [1] [3]


Southwest is maintaining the low cost fares for the commercial transportation including international and domestic.

Strong strategies since 1971 for the establishment of the industry with profitable growth.

Operational expenses will be in between 15-20 % cost.

Company doesn't have any meal, central reservations, baggage handling etc.,

All the flights are Boeing 737, so turn around, maintenance and training costs are less.

New squeeze technology which will reduce the cost.

Customer service is very extensive. [23]

Company got the reputation like Triple Crown based on online service, low customer complaints etc for 5 years.

It has got the quality rating from the national airline consecutively from 3 years.

Employee orientation which leads to their success. The company's mission statements and objectives are to satisfy employees and they will help in the growth of business.

Culture can change anything. Employee orientation developed by CEO Kelleher.

Fortune magazine posted southwest as one of the company which 100 best companies to work in United States of America.

To hold the employees in Southwest management came with some of the plans like sharing the 1st profit and 401 K plan etc. they got lots of profit out of it.

Unionized work environment helps to growth establishment. They can share the works within different departments. May be pilots can handling the baggage section etc. and another major thing is work hours flexibility.

32 years consecutively generated profits with the extensible employee orientation and customer service.

In between 1990 and 1992 they got more profits and none other airlines got up to now.

Huge Credit rated from poor and standard's to southwest. [4]

Company has got more than 30 % profits in 2008 and 2009.

Good culture and low fares are the key factors for consecutive success meets.

With the standard formula and employee orientation only they are moving towards successful business in 2010. [14] [5] [6]


The objective and mission statement does not mentioned that where the company southwest is in. and it is one of the weak point.

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They have to be good in communication and service but the mission statement and objectives has to be clear where we are and what we are doing.

Shuttle services offered by the competitors which they are directly dealing with company. They also dealing, operating, investing, dealing with small companies, including alliances etc. [5]

Company is running over services only in 62 cities which are frequently passengers arrived.

Not a fixed objectives and goals to expand the company services globally.

The cost of the fares is increased and if at all the seat costs increased then fare costs can't be remaining low. [31] [21] [26]


More than 120 cities approved to flight Southwest planes in their cities.

Long distance travel with non stop facility is commenced with Boeing 737-700.

The carriers are increased about to 200 percent by 2010. But it has improved the possible carrier outcomes.

The reliability on the service and price leads to the business edge.

As per the consumer point of view, the need of reliability is precious.

Traveling in leisure time is one of the major thing is US. It is favorable to Southwest because of the frequent flights to the destinations. [9]

Competition strength is more in international where domestic has not that much. It leads to the growth international market.

The control on the airline industry was not so good, which intends the competition of markets.

Technological evolution makes an advantage in ticket less travel and attracts customers with services like online payment.

This company growth which stops others comes into the market. Why so it is getting profitable results consecutively.

Some of the airlines decreased the ticket fares and the huge investment is needed to start business. [1] [11] [13]


Cost analysis has to be taken change in the industry, but maintain the leadership in all the times can make some impact on business. [15]

The Labor is the main factor in cost components. It has 36.9 percent. The total 84 percent of the workers has covered with that.

Fuel is the second biggest component of cost. It can be maintained with the alternative strategies otherwise it will impact more on the business growth.

Government can hold the costs controls and new business trends.

The recent regulations about the safety. [10]

The new legalizations did not allow for the new business startup's and proposed re regularizations. [11]

Low carriers are entered in to the new markets with prior 1978 regularization.

The taxes also increased in huge when compared to the previous financial years which leads to the low profitable income. [13] [1]

Telecommunications are increased while it may impact on the airline business.

Telecommunication and Internet email will also impact on airline business.

Huge speed railways also impact on airline business where people will choose the low fares.

The low quality at the low price strategy would disappoint consumers to travel in Air. Where Value Jet crash was the big example. [17] [12] [13]


Current Southwest market trend

Now a days the situation is totally different, where every Airlines are proposed strategies to increase the cost cutting in fuel. Price war is going on with the companies in current trends. To be competitive, the only thing is to reduce the operations cost. The labor cost would be 38 % of the overall operating cost. [8] The labor cost and increasing efficiency will let the process of cost cuttings. The performance increase will depends on the cost reduction. If the charges are increasing like labor, then the cost per seat will also be increased. Due to this the fare cost will be increased overall. The fuel cost is one of the things which reduce the profitable growth. If the fuel cost is increased then Southwest Airlines needs to increase the fare cost otherwise it will lead to the business end. Southwest is handling all the baggage, e-ticketing and timelines which lead to the business growth. The customers of the southwest have belief in the quality, service and customer support. Now the most successful airlines in the United States are, southwest which is mainly in dependences of the low cost fares and more flights? Yes obviously, the strategy behind it is very competitive. [1] [18] [19]

SW Airlines Business Growth

Quarter - Year wise Revenue Growth:

In the Quarter revenues if we take from the year of 2005, southwest is maintaining the sustainable growth and performance. In the year 2001, southwest got down because of the slow of the global economy and other key factors related to the company operations cost and increase of fuel charges. [19] The highest peak of the sale in the positive manner happened in 4th quarter of the year 2000 & 2005. Now within the stipulated strategies and other key factors establishment got down the company's growth from right margin to less pay outs and profits. The most impressive performance was done in the year of 2000, where southwest has launched more flights and same low cost price rates. Up to now maximum southwest performed successful growth rate according to the market analysis. [10][11] [19]

2009 Revenue comparison with Competitor's:

When compared with the revenues, all the companies are in economic slowdown with high intensity. DAL increased up to 22 % of the revenues in 2009. BA and CSX performed well in the positive growth rates. [1] When compared to last year, the performance of the southwest has not been reached the peak level. In the southwest business company has got lot of profits consecutively, in some quarters company has not been performed well but then also as per the business southwest is in top. In the competitors view, the company is providing more low cost fares to be best in the market. [16] Companies like LCC and CAL performing as per their current growth strategies, where the low quality and low cost are not included. Southwest organized the growth campaign for their business with lots of special deals in the quality and cost. [27] [28]

Share Prices Performance:

In the global market, the stock performance is the better choice to calculate the performance levels of the company. Southwest is performed well in the stock performance. People trust southwest as per the strategies and establishments of the company. Below figure shows the stock performance of the company. Due to variations company has slow down in the share market in December 2008. [28] But in December 2009 Company has still keep the successful growth rate. In the intraday performance southwest performed well.

According to the market levels, southwest will perform well in this 2010 first quarter. The previous results will come up with better performance again. In year 2010, southwest is going to perform well with the new business strategies and strategic plans. Southwest would become a successful airline in the revenue in coming future. [28][21] [2]

Intraday Share Prices:

Recommended Strategy and Strategic plan

The recommended strategy is need for the Southwest Airlines for their business growth and accomplishments. The cost leadership which they utilizing currently as per their business growth will increase their business but in the nearest future, the cost leadership will commence with the optimizing policy which can leads to the regularization. [12] If regularization happens, then they are unable to choose the market trends and the cost reduction also. The growth of the market share is not only the thing but also the development is needed. The more development comes with the strategy and planning. Domestic airlines sector also need to be concentrated by southwest. In United States, the competition is huge and they are focusing on foreign markets. [19] The regularization will impact more on business. If they planned for point - point planes and the domestic market will also get spread. The overall business of the Southwest will be good. The mission statement has to be clearly demonstrated the culture, business and goals of the company. Not the pricing strategies and all. They need to create the mission statement which resembles the overall objectives and standards of the company. [3] It would not be a formal statement about the organization goals. Southwest needs to maintain the technology accomplishments within the business like ticket less travel and online payments, which would impact on business growth and future establishments. From the past 32 years company is getting growth and popularity which leads to the continuous business orientation with good results in future. The cost reduction and financial planning is the most successful part in the business of southwest. [21] [9] [5] [3]

Strategic Plan:


Develop the organization with high potential capable service coordination and functional orientation approach to achieve the nearest goals in the mean time.


The ultimate mission of the company is to provide the extensive customer service with peak quality and impressive friendly environment and good culture.

Goals and Objectives for 2010

Increase the market share more than 30% compared to last year performance by providing quality of service, utilization of global resources, maintains standards and strategic financial planning.

To increase the transportation need to increase planes to 5% more

Increase the transportation and utilization of aircrafts by 5%

Provide transport for 3 new cities which southwest can able to make.

Need to prove as a best airline in industry for customer relationships.

Continue same strength in airline industry in United States. [12]

Improve 10% advanced facilities with new technologies.

Provide innovative services and offers by 8%.

Make product quality20% more by maximum utilization of resources.

Services like ecommerce and online bookings improvement by 5%

As per the records, as a best customer service company, provide strategies like continue same for next 5 years from now.

Decrease the manual work process by 10% [10]

Increase the utilization of automation systems and decrease the employee funding.

Operations cost need to be decreased by 5%

Improve the 5% market lines in industry by serving people with potential qualities.

Improve services as well as be cautious about fuel prices. [24] [22] [28]

Business Plans

Improve the quality of learning procedures and provide a extensible structured way of organizing

Increase the market share in the occurrence of creating population demand.[14]

Make new opportunities successful in coming future

Produce new way of doing business [1]

Provide deals like two tickets by the price of one.

Utilize the internet solutions and reach global people

Maintain turnaround times with ultimate business timelines

Improve the employee, supplier and customers relations. [21]


Southwest Human Resource Practices

A Human resource management is a practice to establish the various aspects on resource supremacy and organizing. Southwest Airlines do not have any Human Resource department at all. Southwest have only the people leadership department. Employees of the organization can able to manage all the resource management things. The workforce environment is depends on the employee orientation and management skills. [8] Employees have been motivated by the human resource practices of the southwest. With the complete profile of the southwest and annual reports of the company deserves the willingness, employee motivation power and human resource practices. Southwest encourages its employees with the best human resource practices like fun in the job environment and flexibility. [11] It encourages the employees in all the way, while travelling also. It covered all the way to southwestern, California and Texas with profitable revenue of 1 Billion Dollar. In the work force environment they concentrated on the flexible benefit plans and included in them in Human resource practices. In the year of 1988, the company has grown to more than 6500 employees. With the more employees southwest need to organize the needs of employees in the eve of organization profits. [19] [20]

Southwest decided to place the new healthcare benefit plans. It has spent $13 million on the healthcare in 1989; finally they saved 6 percent benefit on health care cost. The benefit plans need to aware by the employees. Employees need to know what are the key components of the benefit plans and resultant observations of the plans. Flexible benefit plans has four key components. Those are need to meet the each and every employee needs, create awareness about the benefit plans, tax payable advantage and health care benefit costs. First southwest came with the HRIS system which can able to manage the pay roll systems. Then they form with a team like database administrator, payroll manager and system director. After this they developed the plan of the systematic environment of the human resource manages system within the few months. They planned the requirements and specification in these few months. They started working and establishing with HRIS. [19] [22] [23] [25] Using HRIS, Southwest done a great job by implementing and revises in the payroll. With the little modifications they managed all the regular and flexible benefit plans. Decision of the plans is associated with the employees. They can choose their own plans listed in the system. These plans covered disability, accidental, health care, dental, education etc. they can get the benefit regarding their purchases of plans based on the employee family position. With these plans southwest attracted the employees in all the way and providing major human resource services. They decided to open a news paper with the name of Benefits plus Today and circulated the paper with all the information referencing to the flexible benefit plans. With the help of paper they got 25 percent enrollment of employees in new plan. Whoever registered with the plans company will put their mailing address in the list and whenever company commence with new plans obviously these people who are in list will get mailing notification. In the year of 1990, southwest got award for the business of employee insurance benefits communication. Now they completed the project within 1 year and they are successfully running over their business with HRIS system to serve almost more than 11 thousand employees. [28] [1] [3] [17]

Employee Orientation with HRM

In the working community of the southwest, the workforce has committed like to form as a 9 unions. In these 9 unions, there are 4 pilot unions and 3 unions with technicians. Remaining employees also have some of the unions they are IBT (Teamsters), IAM (international association of machinists, TWU (Transportation workers union). The company encourages these unions from the foundation stage of the company. They also work hard and provide more efforts for the organization profitable growth. But only thing is there is no formal structure of the management so southwest decided to inform the representatives of the unions about various accomplishments. Union leaders asks about the plans like If the benefits plans are coming under the administration policies then what will happen in future? Etc. [8] [1] because of the open door policy there is right to every employee in the organization to question about administration and development. Southwest got lot of questionnaires about the organization benefits plans and management replied with the considerations and facts. Without any intimation top management visiting the work places every year twice or thrice. It helps employees to explain their needs and facts about the company. As like part of company culture, examine everything and provide solution by any staff is considerable. [23] [29] The growth plans are not only indicating by the business heads, even a pilot has a chance to develop the growth strategies. The work implementation of employees has no limits. An employee is an overall resource, he can express his way of doing business and planning business will be appreciated. Finally in Southwest a Committee named culture committee established with nearly 127 members. Every year top management and vice present met all the members and think about the concerns of the employees. The employee orientation established through leadership and culture in southwest. IT is an incredible change in the southwest from the beginning onwards. It helps the organization to improve the public relations, develop culture and establishments. [8] [20] [11]

Converse with reference to Source of Competitive advantage

There are some major factors included in the successful competitive advantage strategy of southwest. Those are 6 key factors Edge, Procedures, People, Communication, Infrastructure and Atmosphere. Due to this key factors southwest implemented the strategic approaches and development initiatives. The procedure is to make the flights fly in air as much as possible. For this it needs the maintenance and operations support from the departments. [12] The cost orientation thing like fewer prices for the Boeing 737 is used for turnaround time a huge in their operations. Low cost flights and point to point travel routes get benefited for the southwest airlines. The large extends of the points improved with the capacity of flights slighter modifications on fare prices and surcharges. With the low cost segments the airlines maintained with the fare rates as challenging. The airports are congested and cheaper one with compared to some of the regional airlines. But market is good due to the low cost fares all over the airports. The airports need to extend their market with the suitable relations with the teams and suppliers. The communication and converse has to be good in the airports. Quality of service depends on the maintenance and management. [29] [30] The utilization of the capacity is formal thing but it is dependent to the airlines industry. The edge of the airlines needs to compete with the domestic airlines in the customer satisfaction and operations facilities. From the last couple of years southwest is very competitive in the market with high revenues and market share. The infrastructure goal of the southwest is to improve the overall communication process. That is why the basic top management and the ground personnel are involved in it.

In the organization everyone will help in the business needs and finally everyone will get the profits. The relationships with the suppliers, customers cannot be deviated from the business orientation approach. They have planned to operate with the one model of the air craft by that they can easily manage the turnaround time and profits with low costs. They manage the airfares with the suitable approaches like low cost, low quality and maintenance. The major edge of the southwest is employee orientation. Pilots will share the work of manage the luggage's and clearing the air craft's would be done by the attendants which is unseen thing in any other organization. Southwest innovative techniques help the industry to maintain the same. The operational process has followed by other airlines with all prospective. After the no-frills travel cam into chart, then they tried with the suitable strategies. [30] [11] [16] [12] Then southwest came with the low price strategy, fun environment, work flexibility, salary hike, extensible customer service, innovations and new ideas etc. With the capabilities southwest spent more than $156 million on only advertising. With the great marketing strategies and policies, it has done a competitive edge in business. They have started working at Dallas love field, so their ticker symbol is LUV. With their strategies and competency levels they became like a new model in industry. Southwest airlines achieve the pride with the friendly environment and atmosphere. With the low complaints and high customer service they enhanced their image. Culture orientation of the southwest has been impressed through customer with hospitalization and quality approach. The policies which delivers the employees feel responsibility and proud. The top management involved in the various things like employees orientation, work process, sustainable organizing etc. with the help of the stable procedures, southwest organized their business in a well organized manner. [8] [20 ] [21] The employee's motivation is highly involved in this. They are operations oriented and top management accomplish tasks based on the implementations. Southwest has own university to teach their employees with good exercise. They gave lot of information practice and job orientation skills. They proposed the environment with friendly culture to cultivate employees with huge efforts. Based on their efforts, employees also consider the things and they followed the work culture according to the company policies. Based on these facts it became no one airline in United States. The above mentioned conclusions are the sources for the competitive advantage of southwest airlines. [27] [26] [8]


Introduction to Easy Jet

Easy Jet is one of the international airlines at London. More than 110 destinations the flights of the Easy Jet will move with exponential speed and visibility. It is mainly in the United Kingdom they operate with more than 6500 employees and more than 500 routes. The establishment is taken place in the 1995 but after that the growth considerations will happen through the cost reduction policies. It has moved with the passengers of 45.2 million passengers in 2009, which are the 2nd biggest airlines in United Kingdom maintained low cost. It was come into the listings of the stock exchange in the year 2000. in the year 2008the over all turnover of the Easy Jet is 2668 Million pounds. [1] Coming to the strategic point the strategy is full based on the Southwest. They are following the same strategy from the year of 2000. Low cost airlines maintenance commence with the blue ocean strategy. The main advantage of the Easy jet is to under taken the strategies of the southwest airlines. They main strategy of the southwest is to maintain the low cost air fares and cost reduction. The operational cost need to be reduced with the level of service providing. If they provide more services then they will charge but the operations cost will be more. [5] To reduce the operations cost they introduced the low cost and low quality air fares. As per the cost, the quality will be provided. No meals in the air lines also one of the strategic thing. As compared with the norms of the southwest, Easy jet is maintained the low cost fares but the management is not that much good compared t southwest. The management should be taken care of the employees and their orientation. Employee orientation will make a change in the strategic development. Southwest has announced the revised salary structures for every one that is the major fact. While in the advance ability and operations status, the development comes under the major effect and the company's growth will increase automatically. [32] [33]

Market similarities & Business Model: Southwest Vs Easy Jet

Easy Jet market qualities, establishments and strategies are similar to Southwest. To compare the both airlines first we need to know the business model of southwest. Coming to southwest successful business model, Successful organization like southwest needs an extensible business model. Southwest chosen the extensible business model which is regional airlines model, where utilizing the possible resource and maintaining low cost air fares in domestic and international. [5] The domestic fare is reduced with the estimation of the point to point service with more no of routes. The essential part of the southwest strength is to maintain the reliable travel process and price equality. The unions are very strength and helpful to the organization which provides the growth in the business with possible resources and potentials. The main strength of this business model is to providing services with low cost and reliable quality. The quality is providing due to the cost effect. The meals are not able to serve inside the plane. Travelling cost is with taxes and surcharges. The quick turnaround at the gate strategy is ultimate strategy which leads their business since 32 years. The unique culture of the southwest us more reliable and advantage to the business lines. [8] [20] The relationships maintained by the company are because of the business teams and for their success. Company maintained the positive relationships with employees and customers by sharing the thoughts, ideas, and opinions etc. The goals initiatives are taken by the employees by cultivate others and motivating them. Initiatives are the great plans for the business orientation success and organization approach to the better possible outcomes. The total work process can be shared within the employees, unions and maintaining the leadership qualities are important accomplishments of the southwest. The possible shared goals, motivation, leadership and relationships will maintain the sustainability in strategic approaches in the company. In the deviated unique culture of the southwest the short fall quick turnaround strategy has processed with the relationships. The operational success for the intimation and affordable orientation works in order to develop the motivation facts.

As per the business model of the Southwest, most of the similarities are equal in both the airlines. Easy Jet follows the same strategic and development paths of southwest. Easy Jet maintained the formula of southwest success. [5] [6] [11] The only reason is the potential performance in financial strategies. The financial performance is better, and then in airline industry the decision making will be easy. The business growth of the Easy Jet is grown up from 1998 to 2003 with the factor of 12 and profits are in range of 9. The top management of the Easy Jet makes a step into the financial management with the extensible strategy where they have lot of funds to maintain the operations for whole year. Financial strategies develop through the variations of decision making and marketing strategies. Business growth in Easy Jet developed by the financial management and successful strategic planning, which copies from southwest airlines. [18] [19] The growth in the market share is also one of the major aspects of the Easy Jet. Market share is depends on the No of passengers carried over by the airlines. Easy Jet development strategy depends on the various aspects like cash management, marketing, establishment, operations and entitlement. Operations strategy required the financial support for their planning and developments. The low cost air fares are one of the challenging issues. Easy Jet follows the southwest strategy in the cost orientation. The resource utilization is also a big thing in airline industry. Easy Jet re captured the same strategies of Southwest in organizing the resources and maintained the same. Resource utilization is based on the significant changes and operations in estimations of the global business growth. [32] [33]

As per the regional airlines model, they are dependent to the limited no of seats and limited to the transportation locations. Minimum they are in between 20-100 seats and very limited in the routes. The carriers operate point to point flights and low cost optimization. Based on the same theory the southwest is operating their airlines with low cost optimization and point to point flights. [1] They are providing services to the limited areas only. The carriers were intended to some of the possible outcomes related to the cost reduction. Southwest operates the whole thing like regional airlines statistics. Regional airlines will carry the whole thing with in the limited aspects. They may not carry more than no of people of seats.[13] [15] The limited seats ha to be maintained in flights. Some of the aspects are there in the maintenance of the southwest when compared to the regional airlines model. They are leading with the carrier, supplier relations, union partnerships, flexibility in jobs, performance measure, competence, relationships, training and leadership. Southwest maintained all those things and finally they got all the relational aspects and operations. [20] [27] [13] Southwest has chosen the best thing for business implementation with strategy and operations when compared to other airlines. The overall development of the southwest is depending on the strategic low cost fares. Because of the regional airlines model, southwest opted for the best choice and finally reached the new limitations. Southwest airlines completely started moving in the fixed routes and not even change the flight models. With the same flights Boeing 737 they maintained all the flexible routes with point to point services. [19] [4] Supplier and customer relationships helped a lot in the business development. First they started services for the limited geographical areas but after they got sustainability in market they started to think globally optimized business needs. Regional airlines concentrate on the Co2 emission. The regional airlines reduced the emission and maintain the low priority. [33]

Air Line Models Co2 capacity and Emissions.

If supposed we compare the airline models for the Co2 emission and capacity, the Regional airlines are very less from the year 1997 to 2006. Other airlines are very huge in the capacity and emissions. The capacity increase level is also growing up but it did not cross the level of Co2 emission.

- (4) Regional Airlines

Coming to the capacity, while comparing seating capacity, Regional Airlines did not crossed 200 seats from 1997 to 2006. The regional airlines are limited to the geographical area limitations, low quality and low cost air fares. [12] [22] totally southwest is followed the regional airlines model. Southwest also did the same thing that not even increased the capacity of seats, changing the flights, changing the fare prices, increase the distance, more new point to point routes etc. so Finally the southwest is very similar to the regional airlines business model.[23]


As per the tasks observed above, southwest is the global company where all the human resource practices, sustainable business strategies were applied. As per the business growth, company has lot of establishment plans to move forward this industry. In the revenue, company has got lot of profits from the past 32 years consecutively. According to the market climate, southwest will change the strategies with slight modifications. Finally with the good human resource practices and sustainable business growth strategies, company has performing well in the business. In the year 2009 company has not been performed well due to the economic slowdown, hike of fuel prices, low fare cost strategy etc. to improve the performance in the coming years, southwest need to change the performance strategies to make a mark. Apart from the business orientation, employee engagement is developed by the CEO of the company. He defined the actual meaning of the employee engagement within the HRM. Southwest has achieved lot of awards for their best customer service and quality. With the excellent consecutive performance, Southwest earned maximum revenue in the year of 2000. Still company is going on with the possible god business strategies.