Low Cost Airlines Case Study Example | Topics and Well Written Essays - 1750 words

Low Cost Airlines - Case Study Example ground on variance of services, has been the entry in the manufacture of Low Cost Airlines.The Southwest airline initially started its operation with short-haul destinations i.e. less than 1,500 km, and at present the company has increased its activities beyond the initial values. It has introduced new airplanes into operations, scarcely initially it was token number of airplanes which were on continuous run.The performance of the Southwest airline has been encouraging due to adoption of impelling techniques, the company recorded crystalise profit of USD 413 million in 2001, which is commencementer than in 2000, but the company was the only profitable airline in United States in 2001. Southwest has plotted to create more than 4,000 jobs in 2002. The company at retained low unit costs (costs per ASM) 7.66 cents in 2001, against the cost of 7.73 cents in 2000.The Southwest Company has unplowed safety as important criteria for the evaluation of its operations, and this is an important aspect of management with reference to Health and Safety, the practice is not widely popular among other low cost airlines, and therefore the Southwest has successful to retain maximum market shares.According to Carlton, the company has complied by the International and National standards of safety and operations, and has invested sufficient occur in this regard. The companys most important management has been its adherence to quality service, and this is termed as an important strategic element for the company. The company purchased Boeing 737 to capsulate required stand-by crews, lower reading and maintenance cost. The company has involved its aircraft into continuous operations i.e. higher aircraft utilization. As a result, South Wests utilization rate is 7.1 hours. (Carlton, 2000)Southwest has follow different and effective mode of service, which is of great relevance, the airline has introduced an innovation distribution system thr ough Internet, and telephone and travel agency i.e. traditional modes. The airline has further adopted strategies ground on horizontal product differentiation that has proved to be important competitive element for the Southwest. The horizontally differentiated products have no classification of the particular product and brand in terms of qualities. The success of the Southwest Airline has been the function of its ability to introduce and maintain minimum operating cost, and implementation of determine strategies which have attracted different segments of consumers and have increased the load factors of carriers, which has further contributed towards sustenance of minimum cost. According to Clemons, the airline has preferred its operations in the regional airports, and which is based on strategic considerations, and subsequently the price factor. (Clemons, 2001) Southwest is considered to be the leader among the Low Cost Airlines, and the airline has professional edge over its co mpetitors.The airline has adopted following measures to ensure that the traveling cost can be reduced significantly, for the convenience of the traveler and companys expenses. IN Varian has appreciated the plan, according to which, the Airline offers no meals, drinks, and snacks for free, and limit seating arrangement has been adopted, the company offers no services for the