How is SWA the low cost leader?
1. They operate only 1 type of A/C to minimize the size of spare parts inventory, simplify the training of maintenance and repair personnel, improve proficiency and speed with which maintenance routine can be completed.
2. SWA tries to steer clear of congested airports, stressing instead serving airport relatively close to major metropolitan areas and in medium-sized cities. This helps produce better than average on time performance and reduces the fuel costs associate with planes sitting in line on crowded taxiways or cirlcing airports waiting for a landing clearance.
3. SWA's point to point scheduling of flight has proven more cost efficient than the traditional hub and spoke design used by rivals.
4. To economize on the amount of timeit takes terminal personnel to check passengers in and to simplify the whole task of making reservations, SWA does not utilize the practice of assigning passenger seats. The print a big A, B, or C on the boarding pass and passengers board roughly 30 at a time.
5. SWA fllight attendants are responsible for cleaning up trash left by deplaning passengers and otherwise getting the A/C presentable for passengers.
6. SWA does not have a first-class section or lounge for frequent flyers, nor do they serve meals on any of their flights.
7. SWA's average turn time is only 2/3 of the industry average. SWA has an average of 2.2 station personnel per 1,000 passengers versus an industry average of 4.2.
8. And the list goes on...
SWA management quote (Kelleher):
"You have to treat employees like your customers. When you treat them right, then they will treat your outside customer right. That has been a very powerful competitive weapon for us. You've got to take the time to listen to people's ideas. If you just tell somebody no, that's an act of power, and in my opinion, an abuse of power. You don't have to constrain people in their thinking."