The initial problem statement that we will be analyzing is on Southwest Airlines Operations. We would like to examine the before and after affect thatâ€ The Attack on Americaâ€ 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 Airlineâ€™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 Airlines a leading competitor to long haul major airlines.
The September 11th attacks changed the entire airline industry and the tactics used to gain passengers. Suddenly profitability was not as important as staying in business. Southwest Airlines proved once again that they are leaders; they did this by cutting already low costs, encouraging employees to be more productive, and allowing its treasured employees the opportunity to give back to their company.
One of the first things Southwest Airlines took into consideration was their customerâ€™s emotion stemming from fear and insecurity. A decision was quickly made to refund or re accommodate anyone with reservations through the end of the year no-matter how restrictive the fare.