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Southwest Airlines

Southwest Airlines. Professor William Wan. Market Capitalization. (2002). Current Market Cap- Southwest vs. Combined. 2002. Net Operating Income (millions of dollars). Other Accolades (examples). Airlines Triple Crown Awards Fortune Magazine Best Employer

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Southwest Airlines

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  1. Southwest Airlines Professor William Wan

  2. Market Capitalization (2002)

  3. Current Market Cap- Southwest vs. Combined 2002

  4. Net Operating Income (millions of dollars)

  5. Other Accolades (examples) • Airlines Triple Crown Awards • Fortune Magazine Best Employer • Between 72 and 92, stock price rose a compounded 21,000% • Rarely lost money in any single quarter • Never experienced major labor strike (1980: 6 days mechanic strike) • The last two items may not sound very impressive, but considering what history of the airline industry, what SW has achieved is nothing short of remarkable.

  6. Southwest Airlines Value Chain HR Management R & D Procurement SW: Selection, training, bonus, stock option, no layoff, legend, union, smaller crew Industry: union, confrontational SW: ticketless, no computerized reservation system, online industry: ticket, agent, computerized reservation system SW: all 737, no meal, secondary airport, young fleet Industry: full service, primary airport SW: low cost reservation no meal, few fare options Industry: high cost, ticket office & agent SW: high efficiency, no meals, no seating assignment Industry: full service SW: point-to-point, fast turnaround, short haul Industry: hub & spoke, long & short haul SW: fun, compete with driving, etc. Industry: business SW: rapid reward Industry: mileage Inbound Logistics Operations Outbound Logistics Marketing Service

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