SYED ALI RAZA

Q1)- By the term turnaround means the flow rate of the airport. At any given point in time, any airport
would be having a specific flow rate at which the airport prepares the inflow of the airplanes for the
forthcoming output. To reduce this time southwest used a couple of Strategic decisions. First, to use one
kind of across the board; Boeing 737. This decision reduced training cost for flying and maintenance and
resulted in deeper knowledge of the technicalities that improved efficiencies and maximized utilization.
Second, they had sent a group of personnel to the Indianapolis 500 to observe how pit crew works as
they also refueled and perform necessary maintenance tasks in seconds. By these observations, new
Ideas and techniques came through leading to a turnaround time 30 minutes lesser than the average
turnaround time of the industry. Third, rather than operating out of a hub airport like every other airline
and their submission to a Hub Airport Routing System, Southwest chose airline routes that were shorter
and this point-to-point system also negated the need for a complex reservation system. Southwest also
adopted a new system that did not assign seats to its passengers and allocated them on a first come and
first serve basis. Every passenger carried a boarding pass with a designated boarding zone and the
zones were called one by one.

Q2)- Employee relations at southwest were one of the best in the industry. Distinguishing factors included
their one strike in a staggering 30 year history. And an employee retention rate of 9% in 2000. The
absence of Layoffs was a matter of pride for the airline. Even when there is an error by an employee he is
not laid off or scolded or penalized, he is given guidance and training on how to prevent errors like that in
the future. Their hiring process is also very rigorous focusing on Skill and attitude, highly concerned
towards customer service. Interviews were also a distinguishing factor at Southwest, often, customers
were also invited for observing interviews and these interviews were always taken simultaneously by the
employees themselves.

Q3)- Frequent Fliers complaint about not having preferential seating is a valid concern as the competition
is providing it, however, it must be accounted for that this kind of a system will be needing more
complications than what the company policy about operations is. Simplicity. The operations of the airline
demands strictly and offers a seat of choice by being the early bird. My decision about this would be to
retain the current simplicity of the process and maintain the first come first serve basis to simplify the
expectations of all of its passengers. Not to demean frequent flyers and their loyalty to the airline, they
expect all of their loyal customers to understand the policy of its most beloved airline and what makes
their beloved.

FAHAD HABIB

Q1)- Turnaround is the flowrate of the airport. To reduce this time southwest used a couple of Strategic
decisions. 1. To use Boeing 737 across the board. This is minimized cost of training for flying and
maintaining and deeper knowledge of the technicalities. 2. They had sent a group of personnel to the
Indianapolis 500 to observe how pit crew works as they also refueled and perform necessary
maintenance tasks in seconds. By these observations, new Ideas and techniques came through leading
to a turnaround time 30 minutes lesser than the average turnaround time of the industry. 3. Southwest
chose airline routes that were shorter and this point-to-point system also negated the need for a complex
reservation system. They adopted a new system that did not assign seats to its passengers and offered
them on a first come and first serve basis.

Q2)- Distinguishing factors include 1. Their one strike in a staggering 30 year history. 2. Employee
retention rate of 9% in 2000. 3. The absence of Layoffs. 4. When there is an error, the personnel is given
guidance on corrective measures in the future. 5. Their hiring process is also very rigorous focusing on
Skill and attitude, highly concerned towards customer service.

Q3)- My decision would be to continue the seating process as it it because of the policies of the airline
that make it great enough for frequent fliers to come by. This is a regular practice around the operations
distinguishing factors and keep things simple. Operations can increase and vary the quality and
philosophy of the airline to a great extent which should not be disturbed at any given point of time.

OMAR TARIQ

Q1)- Turnaround time means the time it takes for an airplane to get ready for the next journey ahead of it.
Southwest sent some observers to Indianapolis 500 and generated equipment and ideas so as to getting
the plane quickly for its next run. They had also ignored the Hub system of longer flights and adopted to a
shorter flight point to point system that required lesser pit stops and served more markets than the
industry trend.

Q2)- Southwest did not have layoffs. They believed in guiding the employee in case of a mistake.
Southwest's employee relation started from its hiring process starting from an interview that were taken
by the employees themselves from a batch of candidates simultaneously. They even invited some of their
customers to interviews keeping customer engagement and satisfaction a constant.

Q3)- I would not be discontinuing the policy the has made Southwest what it has become which is
simplicity in operations. To keep up with that I would still continue with a First come first served basis
seating arrangement providing simplistic operations and continuous customer satisfaction with affordable
prices. Cost minimizing is the trick and no extraneous systems should be deployed.

KAMRAN KAMIL

Q1)- The time required for Aviation Company to make an airplane ready for next flight, that has just been
landed. This time may include the fueling, maintenance, replacement of worn out parts etc., this time
plays a vital role in companys profitability since small turnaround time means maximum utilization of
available airplanes which reflects in the form of increase in profits. Southwest took her employees to a
different industry which has optimized their turnaround time to a great extent; the car race industry and
their pit stop crews. Their employees can observe their operating strategies, the role every team member
play, how they divide their work to get things done swiftly. The lessons Southwests Employees may have
learned were definitely helpful in reducing the turnaround time for them as well. Operational decisions to
lower the operating cost: No bifurcation in price of tickets based on seating arrangement and priorities
customers, thus avoiding the use of complex reservation systems Focused on direct flights to relatively
small airports than hubs, which made a strong link with their frequent flyers. Use of same type of
airplanes, being 737, which helped developed a highly skilled maintenance staff, thus reducing cost of
trainings and decrease in time required for overhauling of aircrafts Southwest wont charge the customers
forcefully for food and other services which they wont subscribe to, if they were provided with such
option. Further, no bifurcation on the basis of their ticket classes and worthy benefits for frequent flyers
rather than earning air miles and credits they will be offered free flights and even free flight for a
companion of trusted consumers.

Q2)- 1. Southwest never went for layoff even during her toughest days, which developed a sense of trust
in the employees and they started to value this trust more than the monitorial benefits. This is the prime
reason why Southwest has a very low employee turnover. Since, employee turnover always costs
companies a loss in their revenue in the form of resources required for hiring new employees, their
trainings, and to build trust in companys values and code of conduct. 2. Employees has been considered
a valuable assets, and are treated with respect and honor. Even in case of worst situation (some
discrepancies and delays), things are taken professionally. Rather than scolding and shouting, the person
responsible, is just reminded of what was done wrongly. This culture made employee realize their
responsibilities and take ownership of what comes under his domain. The sense of responsibility will
decrease such happenings in future and thus increase overall performance of departments and develop
sense of pride in on duty employees. 3. Workspace flexibility: can be witnessed in many forms be it
casual dressing or flexi work hours. It contributes towards increase in creating friendly environment both
within employees and among employees and customers. And flexible work hours plays role in building
trust among team members and also increase the productivity of employees. These majors indirectly
serves to the companies norm of being less formal yet professional and maintain customer friendly
environment, and help building a personal link among flyers and crew members which brought the sense
of comfort for the customers as well.

Q3)- Since it is one of the core business principle of Southwest to not differentiate the customers based
on the seating categories like other airlines do. It would be better for Southwest not to start preferential
seating since it will impact three things, 1. This will require implementing a more complex system which
will have a financial impact. 2. The company has so far succeeded to maintain strong customer relations
with their friendly attitude towards them and not differentiating them on anything. 3. Keeping companys
ethics and culture in view, this decision goes exactly the other way. Currently there are no preferential
seating, all seats in plane are of same category. Also, there is no preference like calling business traveler
to board first and let other flyers sit later. At southwest seating preference is totally on first come first
serve basis. It might be better if southwest dont go for preferential seating. This will directly hit the
customer relations, add complexity for field crews, and implementation of expensive seating systems. On
the other hand, it may create a good will for frequent flying business customers. But, the overall impact of
satisfying a few customers does not worth a shot.

SALMAN MALIK

Q1)- Turnaround time refers to the time it takes an aircraft to land, unload its passengers, undergo
refueling & servicing, perform essential tests/checkups and them takeoff again with another set of
passengers onboard. SA managed to reduce its turnaround time in the following ways: -by arranging for
its observers to visit Indianapolis 500 witness pit crews fuel and service race cars because the
management realized that even though pit crews performed in an entirely different industry and much
faster speeds under different circumstances, the basic function remained the same. -SA's policy of flying
a single type of aircraft, thereby enabling the maintenance staff to specialize in technical issues, thereby
reducing the overall turnaround time. -SA did not transfer luggage to other airlines. This coupled with its
decision to operate at smaller, less congested airports, allowed it to reduce customer wait-time and
overall turnaround time. Lower turnaround time leads to higher revenues as a result of lowered costs. SA
achieved lowest operational costs in the following manners: : 1.Flying point to point without any transfer of
luggage saved effort, time and cost 2.Applying first come first serve model helped reduce operational
costs and achieve efficiency. 3.By using only 1 type of aircraft i.e. Boeing 737, SA achieved specialization
of technology and labor which saved costs. The total cost savings are in-turn passed onto the customer,
as the airline is able to maintain the lowest fares among its competitors. Further, the model appealed to
some customers who were frequent flyers and valued cost savings over an enhanced flying experience.

Q2)- As is stated in the case, SA aimed to restore humanity. In order to form lasting employee relations,
the company had several formal & informal policies/practices which include: - a culture of company/brand
ownership amongst the employees that starts at the recruitment process whereby the existing employees
are involved in the hiring process making them feel that their input is of value to the airline. - the entire
organization tree right from the COO to the luggage loaders are inculcated with a culture that is nurturing
and friendly which is rooted with teamwork and problem solving sessions. As a result employees started
owing their work and willingly take responsibilities. - In SA employees take care of the mistakes made by
their colleagues and counsel them in a manner that is not degrading, hence uplifting the morale of the
employee and instilling a genuine desire to not repeat the mistake in the future. - no lay-off policies help
relationships with the labour unions and making negotiations easy. - flexible shifts for employees to show
that their personal lives also matter to the company These initiatives on part of the management created
cordial relationship between passengers and employees and provided customers with family-like feeling
when travelling. Its no surprise that passengers preferred to fly with SA for frequent travels where they
know and are known by name.

Q3)- Inclusivity being an integral corner stone of SA's culture, the airline treats all of its passengers
equally regardless of their frequent flyer status. In doing so, they are able to provide all passengers with
an equal and consistent level of service. Thus policy of equality also transcends in to its employees
whereby due to the mix of formal and informal policies all employees are treated equally. Hence, i would
agree with SA's FCFS policy with regards to seating as by not having preferential seating, even the first
time flyers are allowed equal opportunity as are all passengers in the choice of seats. From a financial
standpoint, not having preferential or assigned seating allows the company to simplify its ticket pricing,
save time enable reduce workload for the flight attendants. Although, the absence of a preferential
seating plan at SA may lead to lower brand loyalty and result in switching of passengers to other airlines.
However, given this drawback, SA's frequent flyer programs are much better in comparison to the overall
industry. Instead of offering rewards based on the flyer miles, the rewards are offered based on number
of flights, which complements its short haul flights model. The reward program goes further to offer
passengers more flexibility in the choice of destinations, seating and/or timings, which makes the
customers more likely to utilize them. So although, Southwest does not have preferential seating for
frequent flyers, it is rewarding their brand loyalty through an enhanced frequent flyer program compared
to its competitors.

ZOHAIB QURESHI

Q1)- Turnaround time for aircraft is the time taken after landing the aircraft and it being ready to fly again.
It includes unloading cargo, regular maintenance, refuelling, and safety checks. Southwest reduced TAT
by following the car racing pit stop model that focuses on speed and efficiency. They also prefer
operations through smaller, less congested airports. This reduces taxi time, in-air waiting time and gate
holds. Moreover, a faster TAT ensures that less man hours of labour are employed in a certain task. This
increases overall productivity with better allocation of resources, thus reducing costs. A faster TAT also
reduces the chances of cost overruns caused by delays. Other strategies employed to reduce operational
costs include operations with only a single model aircraft (Boeing 737). This saved Southwest
maintenance and training expenses that usually come with managing a varied fleet. Secondly, the airline
employed a point-to-point system of flights with no central hub where entire fleets are usually rerouted.
This saved the airline on complex reservation mechanisms that took into account the role of a central
hub. Thirdly, they saved on food ordering, holding, and catering costs on electing to not serve meals on
flights (except for cheap snacks). It is also important here to mention that they also employed significant
fuel hedging because of which they have the lowest average fuel cost per gallon in the US (exhibit 2). A
low operational cost model means that a company has greater leeway in margins they keep on ticket
prices. They can afford very competitive pricing and ultimately save the customers money. Faster TAT
also increases customer satisfaction.

Q2)- Firstly, the hiring process itself promotes the customer-oriented culture at Southwest, with some
customers even being included in the interviews. It gives the future employee a sense of the importance
the airline places with customer relationships. A group-based peer interview process also imposes a
sense of teamwork and with the stating of embarrassing moments it also encourages owning up to
mistakes. The inculcation of such values from day one ensures that the employees take them seriously
and this translates to better/sincere customer service and hence customer satisfaction. This, in turn,
ensures the airline customer loyalty and returning business. Secondly, the job descriptions of employees
are open-ended. They are supposed to do whatever improves the operations of the business. This
coupled with the teamwork values discussed above means that employees are encouraged to solve
problems and learn new skills rather than blame each other for a mistake. This in turn promotes a cross-
learning attitude which ultimately means that there is greater employee usability in different departments
in cases of need. The knowledge of multiple steps in the process will also mean a greater level of
engagement from employees to make suggestions on improvement and better utilization of resources.
Lastly, employees are given a lot of value in the organization. For example, the management does not
believe in laying off employees just to save some operational costs in the short term. This level of job
security promotes employee loyalty. This leads to a lower employee turnover which in turn reduces
training costs for personnel which can be extensive in cases of stringent airline regulations. This also
promotes long-term employee engagement with frequent customers which increases customer loyalty.

Q3)- The current seating process is termed egalitarian or equal. What it essentially means is that
customers are served on a first come first served basis. Boarding is done by the plane divided into zones
and the earliest zones are given to the earliest arriving passengers. There are no different classes of
seats (first class, business, etc.) and seats are not assigned; which means that people can just choose
any seat when they get on board. This strategy also lowers their TAT. In light of customer sentiments and
even the admittance of the management that this has been a heated issue, it would be advisable to
experiment with assigned seating. To be perfectly clear, it does not mean that Southwest should begin to
follow the conventional model of assigned seating given to every passenger. What it means is that this
preferential seating should be allowed only to a selected class of Rapid Rewards members on the basis
of a minimum miles travelled prerequisite. However, Southwest should continue to not divide their seats
arrangements by class. The pros to this decision are obvious. The airline will then be able to cater to the
requests of extremely frequent travellers. This measure will also not significantly adversely affect their
TAT because such passengers represent a small minority. But it will certainly ensure revenues from that
segment stay constant (if not increase). The cons to this decision are that travellers that want special
treatment through better seat classes will not be catered. There will also be a cost to upgrade reservation
systems to include automatic earlier check-ins for frequent travellers. In the intangible, the decision will
also be a departure from the company value of absolute equality. However, it will better cater to their
other value of customer-centricity.

MUHAMMAD RAMISH KHAN

Q1)- In general terms, turnaround time is defined as the time taken to complete a request. However for an
aircraft industry at airport, turnaround time is defined as the time required to unload an airplane after its
arrival at the gate and to prepare it for departure again. In order to reduce its turnaround time Southwest
sent observers to the Indianapolis 500 to watch pit crews fuel and service racing cars. The airline
recognized that pit crews performed at a faster pace, even though they belonged to a different industry
but the functions were similar to that of airplane maintenance crews. New ideas about equipment fittings,
materials management, teamwork and speed subsequently contributed to a 50% reduction in the airlines
turnaround time. Low turnaround time leads to a low lead time and ultimately to higher efficiency which
ultimately leads to higher revenue to the firm. The three other operational decisions are as follows: i) Flew
point to point as opposed to hubs, the operations of most airlines. The point to point system negated the
need for complicated reservation systems that required coordination between smaller markets and hub
cities. ii) Using only one type of plane to create simplicity. The airline flew only one type of plane, Boeing
737s, which lowered training costs for maintenance and flight crews, created an opportunity to develop
deep knowledge about technical issues and maximized utilization. iii) No assigned Seats Southwest didnt
assigned seats rather relied on first come first served system. Through this their attendants were spared
with complications with customer seating preferences and disagreement. The Low operational cost model
allows Southwest to make round trips more often compared to other airlines. As a result, benefits
customer of free flights when availing Rapid Rewards at Southwest.

Q2)- The three basic distinguishing elements of employee relations at Southwest includes: i) Hiring
employees having family oriented attitude The hiring process from start is taken seriously at Southwest
where employees are judged not just on attitude but also on right skills and capabilities. This unorthodox
process involved group of prospective employees to be interviewed simultaneously by group of actual
employees. Sometimes they would include customers as well in this process and the interviewers would
be asked to describe their overall embarrassment moment in their life. This allowed the prospective
employee to open up and become more flexible rather than being formal. ii) Employees never been
furloughed. Southwest had never layoff was a point of pride and strength for the firm. In fact compared to
other airlines, Southwest was one of the most unionized in the industry. Even in such scenario Southwest
had never been furloughed which contributed therefore to the low employee turnover. Low employee
turnover was important for maintaining relationships with customers and reinforcing family feeling, as well
as saving southwest significant training dollar. iii) Focus more on Job Responsibility rather than Job
Description Employees at Southwest shared one goal and that is that anyone can do any functions, even
the supervisors. Some union contracts dont allow that and so have covered work, however contracts at
Southwest do not have covered work. The job descriptions all at the end states that employees need to
enhance the overall operations by any means necessary. This approach of giving free hand and not
restricting employees often allows employees to innovate and sometimes help in coming up with many
unforeseen solutions to the problem as well.

Q3)- According to the Southwests current seating arrangement, they didnt assigned seats on the plane
but rather relied on first come first served basis system. Upon checking in, passengers are given a
boarding card designating a zone. Zones would then be called one by one with passengers in earlier
groups getting first choice of open seats. The price paid for each seat varied however based on a variety
of factors including; when the ticket was purchased, the time and date of travel, and restrictions
associated with the ticket. With respect to the frequent flyer complaint, I would have considered to provide
preferential seating arrangement to the passengers. The advantage doing this simply to be able to make
customers agree to our payment terms for agreeing over. This would not only increase our existing
revenues but also keep customer satisfaction level high. It would also allow the maximum utilization of all
the resources in terms of seats for the customer. Currently they were going in waste with Southwest
preferring empty seats rather than giving customer their preferential ones. The disadvantage however,
includes increasing turnaround time. Because of preferential seats, the airline attendants would be
occupied guiding people towards their seats, thus increasing turnaround time which ultimately would
increase operational costs. This would reduce revenues of the airline altogether.

NIAZ AHMED

Q1)- Turnaround time of aircraft at the airports means time required to unload an aircraft after its arrival
and prepare it for departure. It comprise of unloading of passengers and luggage, pumping fuel, cleaning
and completing required maintenance, bringing on new crew and loading passengers and luggage for
departure. Southwest recognized that pit crews in the automobile race events essentially performed the
same functions as airline maintenance crew. Hence by observing pit crews fuel and service cars,
Southwest got new ideas about equipment fittings, material management, teamwork and speed which
consequently lead to 50% reduction in its turnaround time. Furthermore, training crew for only one type of
aircraft led to efficiencies which consequently reduced aircrafts turnaround time. Reduction in turnaround
time leads to increased time available for flight. The plane will be available for able to complete more
flights which in effect would lead to increased revenue. Furthermore, as more miles are lodged, operating
cost per mile also reduces which leads to higher profitability. This can be seen by the fact that CASM of
Southwest was the lowest as compared to other airlines. Southwest used smaller airports for operations.
As these airports are typically in less congested areas, this led to reduced delays and hence overall
reduction in cost overruns. Southwest used one type of aircraft which led to lower training cost for
maintenance and flight crew (this was also due to low staff turnover). This also led to crew developing
deep understanding of technical issues and increased maximum utilization which might also lead to
overall cost reduction. Southwest flew point-to-point which neglected the need for complicated
reservations systems. This might also contribute to cost reduction. Customers get tickets at a cheaper
price. Furthermore, operating from smaller airports avoided congested areas, reduced traffic delays and
hence increased convenience for passengers.

Q2)- Low employee turnover. As the staff was never furloughed, it created a sense of security and trust,
hence creating a sense of loyalty with Southwest. Southwest also maintained good labor relationship and
as result had only one labor strike in its history. Although Southwest didnt have formal polices on flex
times and other family programs, however it cultivated a work and family friendly place which gave
employees lot of leeway to attend to family, by e.g. trading shits and etc. Low employee turnover led to
maintaining relationships with customers and also saved Southwest significant training dollars. Hiring
process. Every hired personal was interviewed about customer service, weather it was a CFO or
maintenance personal. Furthermore, Southwest created nurturing relationships between employees by
keeping employees in the highest regards. As an example, employees got in trouble if they offended
other employees. This helped in creating a nurturing environment and also kept employee turnover low.
Shared goals. Employees at Southwest didnt have covered works in their contracts. Hence every
employee worked on shared goals and focused on enhancing overall operations of Southwest. This might
also lead to reduced dependencies on employees which would be beneficial in case of shortage /
unavailability of employees.

Q3)- Southwest planes had only one type of seats. It relied on a first come first served basis in which the
earlier passengers would be assigned a zone that would be called first. However, no particular seats were
assigned to the passengers and it were up to the passengers discretion as to select a preferred seat in
the assigned zone. A passenger can select a restricted ticket with lower fare or can opt for an
unrestricted ticket. Unrestricted ticket enabled passengers to change travel plans without incurring extra
cost. However passengers were required to pay the differential between the restricted ticket already
purchased and price of unrestricted ticket at that point in time. As for the rewards, a free round ticket was
awarded to passengers who completes eight round trips or 16 one-way trips in a year. Furthermore, a
companion pass was issued to one person designated by the passenger who completes 50 round trips or
100 one-way trips in a year. Frequent flyers complain that they should get the opportunity to be in the first
group, regardless of when they arrive, boarded on the plane. Taking a decision on this matter requires us
to evaluate what proportion of revenue is contributed by frequent flyers. Frequent flyers should get the
opportunity if they contribute significant proportion of revenue. Few pros and cons of the aforementioned
are listed below: Pros: Avoid losing customers to its competitors Charge higher fares Cons: Lose out
customers who prefer no frills airline service Increased turnaround time If a new class in created: o
Might lose out on customers who wants to pay less o Increase in operational cost (training staff, food,
etc.) o Increase in capital expenditure (new seats, in-flight entertainment) Considering the above, in my
opinion, Southwest should not change their seating process.

SYED FAIZAN ANWER

Q1)- Turnaround time is the time it takes for an aircraft crew at an airport to drop one set of passengers
and luggage and prepare the aircraft for the next flight. South West Airlines drew inspiration from car
racing pit crews to increase their efficiency and reduce turn around time. They sent their observers to
Indianapolis 500 races to learn and then implement similar techniques with their processes reducing their
turn around time by upto 50%. This efficiency led to higher revenues because of being able to have more
flights. South West employed the following operational strategies to lower costs: They flew only one kind
of aircraft. This meant a uniform type of maintenance and training required for the fleet. This also meant
simpler processes and for staff to have increasingly deeper knowledge of the aircrafts over time. They
did not have pre designated seating. There was only one kind of seat which was assigned on a first come
first serve basis. They had point to point flights instead of the hub and spoke system that was used by
the competitors. The direct routes and no connecting flights ensures lesser delays and smaller trip times.
Reduced costs and efficiency on part of South West meant they could offer cheaper prices to its
customers. Also improved processes meant a simpler and smoother experience

Q2)- The three distinguishing features of employee relations are as follows: The company emphasizes
highly on customer service and that was one of their criteria during the hiring process, this means similar,
like minded workforce who have the same basic idea of customer servicing and are the best fit into the
organizational culture.additionally, they promote a culture of working together and helping eachother
rather than the typical punishment and reward system. Happy employees mean better workforce morale,
where everyone builds eachother up. This essebtailly means your workforce is self motivated and
basically results in efficiency. Job security is another strategy that South West did differently from the
industry. They did not lay employees off. When employees are secure about their job,they focus on the
work itself and results in massive loyalty towards the company. This resulted in the lowest employee
turnover rates in the industry and improved customer service and relations. The employees are given
independence in terms of decision making other than their job descriptions. The employees have shared
goals which means they can exchange shifts and have flexible timings. This allows employees to have
better work life balance. Other than an overall boost in employee morale, shared goals meant improved
team work and multi tasking du to which the staff could handle and take over other roles as and when
needed.

Q3)- Currently, the airline has one kind of seating Economy class. The seats are provided on a first
come first serve basis and there are no pre assigned seats. Boarding passes are assigned according to
zones which are batches of passengers in order of who was the first to arrive at the airport. They call out
the zones to be seated one by one, the early arrivals are seated first and have the benefit of choosing
wherever they want to sit. Only booked flights or specific flights that had discounts accepted discounted
tickets, otherwise everyone paid the standard fair. The company does not offer preferential seating to
frequent flyers but does offer rewards through the frequent flyer program which includes free tickets too.
Although a standard practice in the industry is to have preferential seating and pre assigned seating,
South West benefits from the simplicity by reduced turn around times, lesser in flight conflicts and efficient
processes in terms of lesser resources used and easier management . Even though according to the
case study, this system works very well for South West, In my opinion, it should venture into the
possibility of offering pre assigned seating for frequent fliers. This would give the company a chance to
improve customer service and pre boarding will give more confidence and comfort to the customers and
they wont have to worry about missing a flight. Although the system is simple and efficient but the
customer wants to feel special and the over all experience is what makes them come back. So, rather
than having disgruntled customers, might as well make changes for them to benefit in the long term.

MUHAMMAD AHSAN MIRZA

Q1)- The time taken to service an aircraft in between flights, which includes the carrying out of all the
processes for the aircraft to be ready for the next flight, may be referred to as the turnaround time of the
aircraft. To reduce its turnaround time, Southwest arranged a trip for its mechanics and staff to the
Indianapolis 500 races to observe pitstop crews and how efficiently they refueled and serviced the racing
cars in such a short time. This was because their processes and operations were akin to the functions of
an aircraft maintenance crew. The turnaround time was reduced by 50%, equaling to almost 30 minutes
faster than the industry average, which allowed the planes to be available for more flying time as
compared to other airlines, which in turn equated to more revenue coming in for the airline. The three
operational decisions for low operating costs were: 1. Flying singular type of aircraft To reduce
maintenance services and costs, training costs (as one aircraft meant similar training exercises and
systems for the crew to handle) and to maximize utilization of resources of time, labor, and finances. 2.
Absence of classes in seating The presence of a singular mode of seating class, i.e. a first-come first-
served system, removes complications for pre-booked seating, which allows Southwest to sustain its low-
cost operations. Moreover, few factors such as the date of ticket purchase, time and date of traveling, and
restrictions associated with the ticket, allowed customers to choose their ticket price and provides
customers with a sense of simplicity which in turn allows them to choose Southwest over other airlines. 3.
Point-to-Point Flying As opposed to other passenger airlines, Southwest does not rely on a traditional
system and concentrates, instead, on frequent point-to-point flights. This operation to more direct routes,
reduces connections, delays, and overall trip time, thereby reducing operational costs that the customer
must pay for.

Q2)- The three key elements of employee-relations, and their benefits to the business, at Southwest are
as follows: - The company does not lay off employees and never furloughs them by sending them on
unpaid leaves. This is in stark contrast to the industry practice where furloughs and layoffs are common.
Employees are given autonomy, and instead of reprimanding them for mistakes, the leaders within the
company question the wrongdoer of why the mistake happened, and what could have been done or could
be in the future to amicably avoid committing the same again. o This allows employees to realize that
their jobs were secure and this allowed them to work harder with added motivation. Southwests practice
of retaining employees and providing high job security have led to the lowest turnover rates in the industry
and increasing workforce loyalty; making it more stable, whilst keeping its operating costs down. - The
company puts high emphasis on strong and positive attitude between coworkers. As Southwests
President and COO, Colleen Barrett spoke about how the company is based on a simple mantra of
respect, decency, and friendliness between employees. Employee empowerment is at the core of the
organization, where nothing is hidden from the staff. During the recruitment process, the attitude, skills,
and capabilities of potential employees were questioned, with a strong emphasis being put on customer
care and service. o The friendliness within the companys ranks allows the company to suffer fewer
workforce problems, thereby reducing internal disputes between the management and unions. - The
company ensures shared goals for all staff, which means that any person could perform anothers work.
The timings are flexible and shifts could be traded between employees, allowing for the employees to
have adequate time with their families. The company, however, asks employees to perform amicably,
whilst keeping in mind what is best for the company. o Shared goals, allowance for flexible timings, and
general employee happiness help improve the working environment within the company. Moreover, the
ability of every employee to fill in as and when required for a coworker allows for a flexible and versatile
workforce, thereby increasing company well-being and revenues.

Q3)- Southwest employs a seating system on the first-come first basis, with only one seating class. It
does not preassign or pre-book seats for the passengers, but factors such as the date of ticket purchase,
time and date of traveling, and restrictions associated with the ticket, determine varying prices for the
tickets. Upon boarding, the airline assigns boarding passes for zones in batches, which are in accordance
with the time of arrival of the passengers at the airport. The different zones are then called in sequence,
with the early arrivals boarding first and being allowed to sit according to their preferences. The
companys frequent flyers program and rewards include free tickets (one for 8 roundtrips or 16 one-way
segments in a calendar year), Companions Pass (passengers who complete 50 roundtrips or 100 one-
way flights in one year can designate one travel partner for the entirety of one year). However, Southwest
does not accommodate requests for preferential seating for frequent flyers, something that is provided by
other airlines with pre-booked seating systems. In my opinion, the frequent flyers program is one of
Southwests unique selling propositions, and their low, standardized rates for customers allow for every
passenger to feel the same. Its philosophy of egalitarianism is in line with its business strategy that is
based on high productivity and supreme customer satisfaction. However, the frequent flyers require and
feel that it is their right to be given preferential treatment during boarding and selection of seats,
something that the airline has refused to budge on based on its core principle of egalitarianism. If the
airline were to give in to their loyal customers pressure and start providing preferential treatment to them,
they would solidify a customer base, whilst adding a premium quality service to their business. The
benefits of the introduction of such a system could prove to be highly profitable for the airline. However,
such change would come at a cost of compromising on their core principle of being a low-fare airline that
takes pride in having a egalitarianism philosophy, something that Southwest is renowned for and
something that has allowed Southwest to become the name it is today. My decision, as such, would be to
stick to my core values and not give in to the pressure of providing preferential treatment to the
customers.

HAMMAD SHUAIB

Q1)- The term Turnaround Time of an aircraft at the airport means the amount of time an aircraft takes
between flights i.e. the amount of time taken to prep the aircraft (i.e. refueling, maintenance, change of
flight crew etc.) for the next flight right after it has arrived from one flight. Southwest had a turnaround
time that was 30 minutes faster than the rest of the industry, they achieved that by observing the
Indianapolis 500 pit crews which made them realize that this function had the same importance in the
airline industry as it had in these tracks, so this led to them to reduce their turnaround time by 50%. As
the turnaround time of Southwest decreases that means the aircraft spends less time between flights,
which means that an aircraft can make more flights within a given time i.e. more passengers and which
obviously leads to higher revenues (you will probably make more revenue from having 6 flights in a day
instead of 5). 1. As Southwest only used on type of an aircraft i.e. Boeing 737, it lowered their training
cost for the maintenance and the flight crew, led them having a better grip on technical issues and
maximized their utilization. 2. Southwest had a point-to-point system, in which it transported passengers
for short distances with few connecting flights instead of routing through Hub cities; This P2P system
helped avoid the need for complicated reservation systems that required coordination between smaller
markets and hub cities. 3. Southwest did not transfer luggage from one flight to the next for connecting
flights to different airlines, which reduced its costs. This low cost model led to lower fares for customers
leading southwest to become the most affordable airline, with same treatment for all kinds of customers
without any discrimination in classes.

Q2)- At Southwest there was always a sense of belonging for the employees. Firstly, there was never a
single instance of employees being furloughed (which was a common instance in the industry). This lead
to the employees gaining trust in their employer and having respect for them, i.e. the employees became
loyal to the company and always had a sense of security, which naturally led to a very low turnover for the
company. Secondly, the company always facilitates its employees for instance the company had no
policy for flexible timings for its staff but they never forbade or stopped their employees from trading shits
amongst them or if something went wrong they would ask what went wrong and even tell you how you
can improve for the problem to never happen again and this was all done in such a way that when the
employee left he/she would be even more motivated to work harder in the future, this led to satisfied staff
and they always work harder and better than people who are just there for the sake of it. And lastly, there
is this concept of a shared goal i.e. their job descriptions tell them to do whatever they need to do to
enhance their operations. This means that everyone is well aware of his/her job but if there is a need they
will join the next person, there are no boundaries and no Job is great or better than the other, each and
every job is important. This mindset for employees leads to higher productivity as the staff is much more
organized and if there is someone who is having a difficulty he/she will always have another person to
help him/her out with the task that is to be executed, leading to improved efficiency.

Q3)- One of Southwests core value is Egalitarianism, i.e. it treats everyone equally and does not believe
in preferential treatment for customers just because they spend more in a given time period. At Southwest
the seats are assigned on a first come first serve bases i.e. if a customer comes to book a flight first, even
if he/she is not a very frequent flyer or is even there for the first time he/she will have a preference in
choosing his/her seat as compared to the one who flies everyday but comes in late for booking his/her
flight. I agree with Southwests policy as this sends a message that Southwest takes its core values very
seriously and makes the first time customers feel very welcome and become repeat customers later on
for Southwest. From costs point of view this also leads to lower management cost for the company as
they do not have to work out seats for customers and also it simplifies their pricing strategy as well. The
staff is also saved the hassle of working out seats for passengers. But on the contrary there is this
possibility of a lot of frequent flyers not being satisfied by the treatment they get even though they are
repeat customers and generate a lot of revenue for the company, these customers are very likely to
switch to competitors and even pay a premium to get better seat assignments. To counter that,
Southwest does have a very good reward system which is not based on the number of miles travelled but
on the amount of flights taken in a given time period, and the disbursement of these rewards is also very
convenient for the customers. Southwest should study this trend and see if some rectifying action should
be taken to mitigate this risk.

MUHAMMAD AHSAN MIRZA

Q1)- The time taken to service an aircraft in between flights, which includes the carrying out of all the
processes for the aircraft to be ready for the next flight, may be referred to as the turnaround time of the
aircraft. To reduce its turnaround time, Southwest arranged a trip for its mechanics and staff to the
Indianapolis 500 races to observe pitstop crews and how efficiently they refueled and serviced the racing
cars in such a short time. This was because their processes and operations were akin to the functions of
an aircraft maintenance crew. The turnaround time was reduced by 50%, equaling to almost 30 minutes
faster than the industry average, which allowed the planes to be available for more flying time as
compared to other airlines, which in turn equated to more revenue coming in for the airline. The three
operational decisions for low operating costs were: 1. Only flying 737s To reduce maintenance services
and costs, training costs (as one aircraft meant similar training exercises and systems for the crew to
handle) and to maximize utilization of resources of time, labor, and finances. 2. Absence of classes in
seating The presence of a singular mode of seating class, i.e. a first-come first-served system, removes
complications for pre-booked seating, which allows Southwest to sustain its low-cost operations.
Moreover, few factors such as the date of ticket purchase, time and date of traveling, and restrictions
associated with the ticket, allow customers to choose their ticket price, with a sense of simplicity, which
allows them to choose Southwest over other airlines. 3. Point-to-Point Flying Unlike other passenger
airlines, Southwest does not rely on a traditional hub and spoke system and concentrates, instead, on
point-to-point flights. This operation to direct routes reduces the overall trip time, thereby reducing
operational costs.
Q2)- - The company does not lay off employees and never furloughs them by sending them on unpaid
leaves. This is in stark contrast to the industry practice where furloughs and layoffs are common.
Employees are given autonomy, and instead of chastising them for mistakes, the leaders within the
company question the wrongdoer of why the mistake happened, and what could be done to amicably
avoid committing the same again. o This allows employees to realize that their jobs were secure and they
worked harder with added motivation. Southwests practice of retaining employees and providing high job
security have led to the lowest turnover rates in the industry and increasing workforce loyalty; making it
more stable, whilst keeping its operating costs down. - The company puts high emphasis on positive
attitude between coworkers. Southwests COO, Colleen Barrett, spoke about how the company is based
on a simple mantra of respect, decency, and friendliness between employees. Employee empowerment
is at the core of the organization, where nothing is hidden from anyone. The attitude, skills, and
capabilities of potential employees are checked in the recruitment process, with a strong emphasis being
put on customer care and service. o The friendliness within the companys ranks allows the company to
suffer fewer workforce problems, thereby reducing internal disputes between the management and
unions. - The company ensures shared goals for all staff, which means that any person could perform
anothers work. The timings are flexible and shifts could be traded between employees, allowing the
employees to have adequate family time. o Shared goals, allowance for flexible timings, and general
employee happiness help improve the working environment within the company. Moreover, the ability of
every employee to fill in as and when required for a coworker allows for a flexible and versatile workforce,
thereby increasing company revenues.

Q3)- Southwest employs a seating system on a first-come first basis, with one seating class. It does not
pre-book seats for the passengers, but factors such as the date of ticket purchase, time and date of
traveling, and restrictions associated with the ticket, determine varying prices for the tickets. Upon arrival,
the airline assigns boarding passes for zones in batches, which are in accordance with the time of arrival
of the passengers at the airport. The different zones are then called in sequence, with the early arrivals
boarding first and being allowed to sit according to their preferences. The companys frequent flyers
program and rewards include free tickets and Companions Pass. However, Southwest does not
accommodate requests for preferential seating for frequent flyers, something that is provided by other
airlines with pre-booked seating systems. In my opinion, the frequent flyers program is Southwests USP,
and their low rates for customers allow every passenger to feel the same. Its business strategy is based
on high productivity and supreme customer satisfaction. However, the frequent flyers require and feel that
it is their right to be given preferential treatment during boarding and selection of seats, something that
the airline has refused to budge on based on its core principle of egalitarianism. If the airline were to start
providing preferential treatment to them, they would solidify a customer base, whilst adding a premium
quality service to their business, which would be highly profitable for the airline. However, the change
would come at a cost of compromising on their core principle of being a low-fare airline that takes pride in
having an egalitarianism philosophy, something that has allowed Southwest to become the name it is
today. My decision would be to stick to my core values and not give in to the pressure of providing
preferential treatment to the customers.

SYED SALMAN HASAN RIZVI

Q1)- Turnaround time refers to the amount of time taken for the next flight to be ready for departure after
the previous flight has landed. Once the flight has landed the airplane maintenance crew has to perform
maintenance activities such as refueling, loading and unloading baggage, servicing the aircraft, etc. The
time it takes to perform these activities is included in the turnaround time. Southwest adopted a strategy
of simplicity in its operations to reduce its turnaround time. As part of this tactic, Southwest flew only one
type of aircraft, the Boeing 737, which made it easier for them to train the flight and maintenance crew
who developed an expertise in resolving technical issues. Southwest took an initiative to send some of its
staff to Indianapolis 500 for observing how the race crew serviced the cars. Those who came back gave
feedback on the different ways in which turnaround time could be reduced such as better material
management, equipment fittings, improving servicing speed and teamwork. The higher turnaround time
meant that one aircraft would fly 12 hours in a day thus increasing the number of flights per day per
aircraft ultimately leading to higher revenues for the firm. The following helped Southwest lower
operational costs: 1) Point to point system: Transporting passengers from one point to the next thus
avoiding additional reservation costs of Hub systems. 2) No interlining: No transfer of luggage to other
airlines and hence no additional costs of entering into arrangements with other airlines. 3) No frills: No
meals served during the flights thus lowering unnecessary flight costs. The point 2 point system
shortened the flight time for customers taking short distance flights. The customer could pay lower fares
for no frill flights since lower operational costs could be passed on as lower fares.

Q2)- Firstly there was greater job security for the employees which meant that the employees could work
with a free mind without the fear of losing their jobs. This created a culture of trust and loyalty amongst
employees who would stick with Southwest in their bad times because Southwest offered them protection
and job security throughout their careers. Southwest being one of the most unionized in the airline
industry meant greater protection of employee rights which further strengthened the employee-employer
relationship. There was only one strike in 30 years of Southwests operations which is evidence of the
healthy labor relations at the company. The lower turnover due to greater job security meant that the
business did not incur additional hiring and training costs for new employees as compared to other
airlines in the industry. Secondly a culture of employee engagement was promoted. An evidence of
employee empowerment was when job candidates were interviewed by existing employees. Engaging the
employees in the hiring process developed a sense of involvement amongst them. They felt valued in the
organization with a greater sense of ownership. Such feelings of empowerment lead to greater job
satisfaction which is then translated into better workplace performance reaping huge benefits for the
organization. Lastly Southwest was very tolerant of employee mistakes and promoted a learning
environment within the organization. If an employee failed to perform on any aspect of the job he was
given guidance by the manager on how to improve or fix the mistakes made instead of being penalized.
This nurtured a friendly work environment. Furthermore, additional support was provided to employees as
the management was very flexible in scheduling shifts and the employees were given the option to trade
shifts. Consequently, these motivated employees worked with greater commitment thus serving the
business interests better.

Q3)- I agree with Southwests decision to not have preferential seating arrangement for their frequent
flyers. Southwests entire business culture reflects egalitarianism. Their first come first policy is in line with
their business motto where customers are treated with fairness and no preferential treatment is given to
anyone. They make up to the customers by treating them with kindness and attention. This in turn leads
to strong relationships being developed between customers and employees. The current passenger
seating process was simple, if you arrived earlier you can opt for the better seat. There is no pre-boarding
and the price of ticket is based on factors other than the seating arrangement such as time of ticket
purchase and date of travel. The advantage is that people who are flying for the first time feel valued
since they are given the same treatment as the frequent flyers which may result in developing long term
customers. Another benefit of this to Southwest is better flight management since the first come first
model simplifies things for the flight crew. It also allows the management to devise a standard pricing
structure since no preferential seating means that pricing does not vary based on where you are seated.
Furthermore, clients are compensated by the rapid rewards program where they are offered free flights
based on the number of trips they take. The disadvantage of not having a preferential seating
arrangement for frequent flyers is that customers who fly often would feel that they are not properly
rewarded and may switch to other airlines due to the highly competitive nature of the industry. Despite the
complaint, I would continue with the current program because the pros outweigh the cons and Southwest
does not have to compromise on the principles on which the foundation of the organization is set.

MUHAMMAD MUSTAFA SARWAR

Q1)- Ans.1) The turnaround time of the aircraft means the average time it takes for one aircraft to get
ready for its next destination, or the time taken to refuel and give maintenance service to the aircraft and
make it ready for next flight. To improve the turnaround of its aircraft at airports, Southwest sent
observers to the Indianapolis 500, to watch pit crews fuel and service race cars. The observers
recognised that pit crews performed these tasks at a much faster speed, so they brought new ideas about
equipment fittings, materials management, teamwork, and speed, and this lead to a 50% reduction in the
airlines turnaround time and now it was 30 minutes faster than the industry average. Lower turnaround
time will help in generating greater revenue because now with new equipment, less crew members would
be required, so labour cost would be low. Then since more flights would be running in the same capacity,
so more passengers can be onboarded, so sales will now be high. There will be less delays in scheduled
flight times. So overall image of the airlines would be positive. Southwest airline used Love field, due to its
status, of a minor league airport there was very less traffic which prevented delays. Another strategy was
to fly only Boeing 737s, which lowered training costs for maintenance and flight crews, created an
opportunity to develop deep knowledge about technical issues and maximised utilization. Also Southwest
transported passengers short distances from one point to the next with few connecting flights, this
eliminates the need for complicated reservation system that requires coordination between small markets
and hub cities. The overall benefit to the customers would be the ease and convenience during flights
since there would be less traffic , few connecting flights ; hence, time would be saved.

Q2)- Southwest aimed to restore humanity to an industry overwhelmed by regulation and procedure. This
can only be done if the relationship with employees is simple, respectful and friendly. The distinguishing
elements of employee relationship at Southwest can be reflected by low employee turnover. This was
essential to maintain relationships with customers and reinforcing a family feeling as well as saving
southwest significant training dollars. The flight attendants are dressed casually and approach customers
in a friendly manner, even the customers know the attendants name. Southwest has never had layoffs
and it was a point of pride for the company. The benefit for the company is that employees get motivated
since there job is secure. None of the employees have been furloughed, this is a huge strength which
helped the company negotiate with union contracts. This thing breeds loyalty, security and a sense of
trust on the company. Also the hiring process emphasized on individual level skills and capabilities and
customer service. The customer service was not only for external environment but for internal aswell,
Employees were always in highest regard and the word Employee is always capitalised. Moreover,
there is a proper code of conduct regarding employee relationship with their peers, every person was told
to respond favourably because it promotes good working relationships. If an individual is appreciated and
is in positive attitude, so everything that needs to be done, will get done. Southwest has always
maintained a nurtured environment with its employees. Even if they have done something wrong, or there
is a delay in work, they are asked politely, as if they were yelled at, their self esteem and recognition will
be harmed, which will demotivate them.

Q3)- At Southwest, customers sit wherever they want , but if they have a boarding card, they are in the
first group to board. Rapid reward members have been complaining about this, that since they buy more
full-fare tickets than any of the other travellers, they should be given an opportunity to be in first group, no
matter whenever they arrive at gate. In my opinion, Southwest should keep on following their policy of
customer service. All customers are equal, allowing the rapid reward members the authority to sit
wherever and whenever they check in, would be unfair and would be in conflict with the current policy of
giving equal respect to all its customer. Currently, Southwest does not assign seats on its plane, but
rather have a first come first serve system. Upon checking in, passengers were given a boarding card
designating a zone. Zones were called one by one, with passengers in the earlier groups getting first
choice of open seats. Southwest also chooses to fly with empty full-fare seats rather than seat even its
best customers with the restricted fare ticket without paying the difference. I believe that southwest should
follow the same seating arrangement. With current seating arrangement, flight attendants would be
spared from complications with customer seating preferences or disagreements. Also rapid reward
members could not dominate the staff with whatever they want. The cons of this would be that, this policy
would continue to dissatisfy the fullfare members, who might shift on to competitors if they have an
indifferent offer from other airlines, since they are usually business travellers.

JUNAIDULLAH KHAN

Q1)- The Term Turnaround Time for aircraft means the time it takes for an aircraft to be ready to fly again
after reaching a particular destination . Southwest took lessons from another industry i.e. Racing , to help
improve turnaround time . They observed how pit crews fuel & service race cars at a much faster pace
than the aircrafts , however performing the same functions . Innovation in Equipment Fittings ,Material
Management, Teamwork & Speed also played a key Role in reducing turnaround time . Reduced
Turnaround time meant more flights & more flying hours as turnaround time was kept at a minimal level .
Southwest Planes flew for 12 hours a day on average , maximizing the flying hours & thereby optimizing
the revenue. The Three Enablers for Lower Costs were - One Standard Aircraft across flights leading to
lower training & Maintenance costs - Point to Point System as opposed to Hub System minimizing
connecting flights & complex procedures required for transfer involving luggage & reservations - Secluded
Airport Locations away from the City Centers meant lower costs as well Low Operational Costs meant
extremely affordable ticket prices , simplicity & equality in terms of customer treatment . All of which
became an Industry Benchmark pioneered by Southwest

Q2)- - Lowest Employee Turnover across the Industry with a No Layoff Policy - Rigorous Hiring Process
emphasizing on skills, attitudes & behaviors relevant to Customer Service . - Peer behavior was also of
prime focus emphasizing the good working relationships , tolerance for mistakes & a coaching style for
better performance. Low Employee turnover resulted in excellent customer & employee relationship
established through time & familiarity. Low Turnover also meant excellent relationship with the Labor
Unions due to added job security . The Unique hiring Process ensured that all Employees coming on
board had a customer centric Approach & Orientation which was central to good customer service in the
first place. A Culture of respect & tolerance encouraged people to take pride & ownership in their tasks .
A Work & Family friendly environment ensured that the employees were given flexibility on their tasks ,
which enabled better performance

Q3)- I believe the Frequent Flyers must have a preferential seating arrangement for them . With a large
customer base , Southwest must put in place all mechanisms for Retention of their customers . If there is
a Customer Complaint it has to be addressed. Airline Business is an increasingly competitive industry , if
absence of some benefits annoys the customers, they can easily switch. The Current seating
arrangement is on first come , first serve basis that means no assignment was done while boarding &
customers were free to choose from the available seats depending on their "Zone"(First Come First
Serve) timings. Pros - Ensuring Retention of Loyal Customers - Securing the 20% that matters (80/20
Principle for Business). All Customers are not equal , thereby they should not be treated equally Cons -
Moving Away from the Core Values of Egalitarianism which is at the heart of the Southwest Philosophy -
Added Complications associated with reservation of seats (Systems & Procedures)
SYED ALI RAZA

Q1)- By the term turnaround means the flow rate of the airport. At any given point in time, any airport
would be having a specific flow rate at which the airport prepares the inflow of the airplanes for the
forthcoming output. To reduce this time southwest used a couple of Strategic decisions. First, to use one
kind of across the board; Boeing 737. This decision reduced training cost for flying and maintenance and
resulted in deeper knowledge of the technicalities that improved efficiencies and maximized utilization.
Second, they had sent a group of personnel to the Indianapolis 500 to observe how pit crew works as
they also refueled and perform necessary maintenance tasks in seconds. By these observations, new
Ideas and techniques came through leading to a turnaround time 30 minutes lesser than the average
turnaround time of the industry. Third, rather than operating out of a hub airport like every other airline
and their submission to a Hub Airport Routing System, Southwest chose airline routes that were shorter
and this point-to-point system also negated the need for a complex reservation system. Southwest also
adopted a new system that did not assign seats to its passengers and allocated them on a first come and
first serve basis. Every passenger carried a boarding pass with a designated boarding zone and the
zones were called one by one.

Q2)- Employee relations at southwest were one of the best in the industry. Distinguishing factors included
their one strike in a staggering 30 year history. And an employee retention rate of 9% in 2000. The
absence of Layoffs was a matter of pride for the airline. Even when there is an error by an employee he is
not laid off or scolded or penalized, he is given guidance and training on how to prevent errors like that in
the future. Their hiring process is also very rigorous focusing on Skill and attitude, highly concerned
towards customer service. Interviews were also a distinguishing factor at Southwest, often, customers
were also invited for observing interviews and these interviews were always taken simultaneously by the
employees themselves.

Q3)- Frequent Fliers complaint about not having preferential seating is a valid concern as the competition
is providing it, however, it must be accounted for that this kind of a system will be needing more
complications than what the company policy about operations is. Simplicity. The operations of the airline
demands strictly and offers a seat of choice by being the early bird. My decision about this would be to
retain the current simplicity of the process and maintain the first come first serve basis to simplify the
expectations of all of its passengers. Not to demean frequent flyers and their loyalty to the airline, they
expect all of their loyal customers to understand the policy of its most beloved airline and what makes
their beloved.

SAUBAN AHMED

Q1)- Turnaround time of an aircraft is defined as process and amount of time taken by an aircraft crew to
drop the first set of passengers and their baggage, then the plane is cleaned and restocked, complete
maintenance checklist, load the new passengers with luggage. In order to reduce the turnaround time
Southwest took inspiration from car racing pit crew. Southwest sent observers to watch them fuel and
service race cars at much faster speed although they belonged to entirely different industry but their
functions are quite similar to that of airplane maintenance crews. They got new ideas regarding
equipment management and team work which subsequently contributed to 50% reduction in Southwests
turnaround time which now approximately 30 min faster than industry average. As Airplanes only make
money in the air therefore reducing the turnaround time means more time in air, Southwest planes fly an
average about 12hr/day resulting in lower Operating cost or higher operating revenues as compared to
industry average. Southwest Airlines was able to achieve the lowest operating cost in the industry with
innovative Operational decisions such as: They do not serve in-flight meals. Their first choice is smaller
airports typically in a less congested areas which increases convenience for passengers. Southwest
flew only one type of aircraft i.e. Boeing 737, which lowered training costs, maintenance cost, flight crews
have deep knowledge about technical issues. Southwest employs point to point flight operation instead
of hub and spokes strategy which resulted in no need of complicated reservation system and passenger
can fly non-stop from origin to their respective destination. Southwest did not assign seats to
passengers rather they operate on first come first serve basis which reduce possibility of disagreements
over seating preference. All above operational decision contributed in making southwest an affordable
airline for the customers as, SW was able to pass on this benefit to their customers by having reduced
airfares.

Q2)- Southwest holds its employees in highest. The three important elements which were an integral part
of excellent employee relations at Southwest are as follows: Southwest has lowest employee turnover
i.e. just 9% per year, which is important in maintaining relationship with customers and spread family
feeling within an organization. Lower employee turnover is a result of Job security which the management
assured and delivered upon. Even in times of low economic activity employees were never sent on
unpaid leaves also known as furlough, lower turnout saves significant training costs. Southwest is one of
the most unionized in the industry, but still they have just one strike in 30 years thanks to its relations with
labor. Southwest hiring process lays stress on applicants attitude, teamwork skills, which has helped it
to build dynamic and motivated workforce, helps in smooth functioning of an organization. For every
aspirant to join southwest, customer service is of utmost importance, customer service is not only external
but also internal i.e. to promote working relationship among the employees to have a feeling like we all
succeed together and all fail together. The company was also of the view that employees are susceptible
to making mistakes, therefore it is important to comprehend why errors are made and try to come up with
ways which solve the mistakes without finger pointing at each other and make sure they wont happen the
next time Southwests one of the most striking features for its employees is the provision of flexi timings
and trading shifts even if it is not part of policy, this will help in creating a work and family friendly place
where employees have a lot of freedom to trade shifts as per their comfort, these are important non-
monetary factors in keeping up the motivation of the employees.

Q3)- One of the most important aspect, which differs southwest airlines from its competitors is its seating
arrangement plan. Southwest employed the First Come First Serve rule which means that those
passengers reaches the airport earlier will get a first choice of seats. Southwest splits the passengers into
groups called zones and the customers reaching well before time will have advantage over late comers
regarding boarding passes, as they are given passes of earlier zones, hence they get a better choice of
seats. Southwest had very few complaints from its customer base approx. 1 out of 212765 customers, but
the most common and repetitive complaint was from frequent flyers about the nonexistence of preferential
treatment even if they flew more than 100,000 miles per year through Southwest airlines, passenger like
Liz Blast is the victim of this policy. Even though Southwest had a much incentivized rapid reward
program which included free tickets after every 8 roundtrip or 16 one sided trip within a year,
complimentary cocktail coupons, credit with preferred partners, still people like Liz, who were business
travelers complained about the lack of special treatment. Southwest adopts classless seating concept
which was quite uncommon in the industry and Southwest believed in treating every customer equally be
him first timer or frequent flyer but in order to prosper in the long run Southwest can reconsider their
seating plans and shift to giving some privileged treatment to its frequent or regular flyers, as with
competition increasing it becomes very important that the loyal customers do not say goodbye to
Southwest they deserve better seating and their travel must go on smoothly without any last minute
hitches. But in contrast to above with preferential treatment to frequent flyers Southwest losses its status
of equal customers policy, this might result in loss of some customers.

SYED MUHAMMAD HANI ATHER

Q1)- The term Turnaround time specifically in the cases of aircrafts at airports refers to the amount of
time taken from the point where the airplane lands till the point it flys again. The time taken by the airline
in the middle of this activity is called the turnaround time. Southwest reduced its turnaround time by more
than 50% as compared to previously and 30 times faster as compared to the industry majorly by proper
materials management and using the right kind and fitting of equipment. Customers benefitted from this
reduced turnaround time in terms of less number of delay in flights and the airline benefitted accordingly
since the plane remain in air for much more time. Furthermore, Southwest Airlines used 3 operational
decisions which are as follows with regards to reducing the cost. Firstly they used simpler flights rather
than connecting flights. Secondly , they used simplicity in terms of using 1 type of plane which reduced
training cost of staff. Thirdly, They flew to airports where there was less congestion in terms of people.
Customers benefitted in terms of clarity and simplicity rather than waiting for connecting flights.

Q2)- Southwest had a different and prominent policy of hiring as compared to the industry . Rather than
going for the skills necessary to conduct a job they would prefer attitude of the personnel. The three
reasons which distinguish Southwest from other airlines are as follows. Firstly , the fact they work as one
company with a shared and similar gaol. Employees are Southwest are majorly focused and driven with
regards to how can they push and do good for the business and company. Secondly , high level of
teamwork where the focus was on not the mistakes made by the employees and punishing them but
rather to guide them in such a way that the issue doesnt happen again. Thirdly , a friendly and family like
attitude among the employees which is prominent from the fact that the employee turnover is less than
9% for which the company takes prides in. Its a company where every one is each others friend and
takes care of each other which proves Southwests legacy of 30 years. Customers and frequent flyers
travelling also knew employees and would benefit with good relationships.

Q3)- In the current scenario, Southwest airlines standard operating procedure in such that they would
implement and value equality among customers. They dont have inequality and preferential treatment
among classes made in their airplanes. This can also adversely affect the relationships with customers as
other airlines do provide similar costly services but with preferential treatment. In such scenario, I would
suggest that Southwest airlines shall not take the risk of loosing brand value to customer loyalty. Frequent
flyers shall get attracted to the airlines by further lower rates rather than preferential treatment . The rule
of first come first serve is the core of the brand image of the company. This should be used a strength or
differential factor by the airline .

MUHAMMAD SAAD KHALIL (3 HRS LATE)

Q1)- Aircraft turnaround equals to the time passengers take to leave the plane once the plane lands to
the time of next flight plus time taken to service the aircraft. Among the following factors that helped
Southwest to reduce its time considerably, the policy of flying a single type of aircraft was the most
important as it helped the maintenance people to specialize in the job, which in turn reduced the overall
time. Also, the company adopted best practices of equipment fitting and materials management from
other industries (formula racing) to streamline its workflow. Other than that, the company developed a
policy of not transferring luggage to other airlines and operating at smaller airports with lesser footfall,
which contributed to overall turnaround time reduction. An airline can increase its number of flights with
lower turnaround time, which contributes to higher revenue, improved utilization, and lower operational
costs. Moreover, less turnaround time means less airport charges, and hence lowest operating expense
per ASM among competitors. Southwest reduced its operating cost by following a low-cost strategy and
offering no meals during the flight. Moreover, company used a singly type of aircraft, which gave it an
upper hand over supplier, Boeing plus lowered maintenance and operating costs. In addition, by focusing
only on smaller airports and following point-to-point model, the company was able to reduce airport
charges. Since the company was able to reduce its cost to such an extent, it passed it to its customers.
The model proved to be quite attractive for customers who fly frequently as cost savings matter to them
more than a luxurious travel experience.

Q2)- An open culture with high employee involvement is one of the major differentiating elements of
Southwests employee relations. The recruitment process at Southwest is reflective of how the current
employees are thoroughly involved in the hiring process. This inculcates a culture of ownership in the
employees minds making them feel valued, resulting in higher employee morale, increased job
satisfaction, lower absenteeism and lower turnover. On the contrary, the process of recruitment at other
firms did not incorporate higher employee involvement. Moreover, the friendly culture at Southwest
promotes teamwork and harbors a feeling of belonging and inclusivity. The mission statement of the
company also reflects the firms spirit while the upper management, specially the COO is considered as a
maternal figure in the company. In addition, the companys attitude towards the mistakes of the
employees is unique; rather than penalizing the employees, a culture of learning is fostered so that the
same problems and issues arent repeated in the future. This helps boost employee morale, improves
commitment towards the firm and enhances future employee performance. Consequently, teamwork is
further encouraged as stringent job descriptions do not exist and customer oriented culture prevails.
Likewise, Southwest treats staff members like assets, which is portrayed in their all-encompassing culture
and organization policies. A higher level of job satisfaction improves overall morale of the firm as well
productivity of the workers. Low attrition rates let the firm reduce training costs, fostering a family oriented,
friendly culture in the minds of the employees, henceforth improving customer bonds. This further
humanizes Southwests philosophy, reinforcing and strengthening its brand image in the consumers
minds.

Q3)- For Southwest, every customer is treated with parity. Seat selection, in line with this value, is based
on a first come first basis. New customers feel at home alongside older ones. From the companys point
of view, this saves cost and hosting mannerisms. Brand loyalty, however, is adversely affected due to
this. To battle this negative ordeal, the frequent flyer system is based on number of flights shorter flights
are advantageous. This flexibility allows the airline to have a competitive differentiator to retain brand
loyalty.