9/11 and Airlines

The initial problem statement that we will be analyzing is on Southwest Airlines Operations. We would like to examine the before and after affect that� The Attack on America� had on Airlines industries cross the world, but specifically about Southwest Airlines. The primary focus of this analysis on Southwest Airlines is to gain a better understanding of how this company plans to regain profits and recuperate financially from the economy down fall. The key points of this analysis are efforts used by Southwest Airlines to maintain employees, the moral responsibilities of Southwest Airline’s leaders, perceptions from consumers and employees in relation to the terrorist attack, and the security measures that Southwest Airlines plans to take to keep air travel free of terrorism.
Southwest Airlines has always prided itself on being a low cost, safe, and customer friendly airline. Since its inception 30 years ago the leaders of this short haul airline have understood that low operational and overall costs would in turn provide lower fares for their customers which would hopefully increase the number of passengers, which would result in higher profits. This simplistic concept has worked well in making Southwest A

Despite the obstacles that Southwest Airlines continues to face they still intend to retain employees and customers. Southwest Airlines continues to be a strong force emotionally and financially and plans to continue to grow. However, Southwest know they will not be successful without dedicated employees and customers. The focus now is to “Keep America Flying,” by maintaining a safe environment so that customer and employees are safe.

The CEO of Southwest airline voices his opinion on revenue since the attack on America. The airline continues to suffer from depressed fares and sluggish passenger traffic, and a quick recovery is not in sight. The short-haul king, who is among the strongest carriers, is struggling to stay profitable. Southwest chief executive, James Parker, states he could not predict whether they would turn a profit in the current quarter, nor the first quarter of 2002. Executives are hoping to see a positive cash flow by the spring.

One of the many new articles written over the past months stated that “Southwest must be doing something right that other airlines have not caught on to.” The only thing Southwest did was to stay true to their employees and customers; to keep both in mind when making decisions regarding the livelihood of thousands of people. They stuck to the basics. Although Southwest looks great compared to other major airlines, they realize that they are not out of danger yet. Jim Parker, Southwest Chief Financial Officer has stated that they will not be profitable this quarter but should be for the year. All airlines are climbing an uphill battle to stay alive and to “Keep America Flying” thankfully the smarts of Southwest over the years, have given them an edge over competitors.

¨ It has never had a fatality in 30 years

Airline employees all over the country have wanted to know what they can do for their companies and many have not been given the opportunity to give in ways other than being productive while on the job. Southwest Airlines gave their employees a way to give back by forming a program called “Pledge to Luv.” The program gave employees the opportunity to donate a portion of their salary by pledging hours. They were given four pay periods to chose from and could give up to 40 hours total. The program raised almost $2 million and in turn gave the employees a sense of accomplishment. The Board of Directors joined in the giving as well by donating their pay through the end of the year 2001. Leading by example is one of the airlines basic principles.