Southwest Airlines' Pertinent Business Model

Administrative & Business Services processes need to be high quality but no-frills - doing only the essential functions, and executing them very well. Southwest Airlines provides a useful object lesson of this principle.

Southwest Airlines' "Keep It Simple" Business Model

  • They don't fly everywhere
  • Sparse customer amenities
  • No seating class distinctions
  • Fewest customer options
  • No choices on type of aircraft
  • Simplest pricing structure
  • Bare-bones frequent flier program
  • No frills
  • Few pretenses
  • Peanuts, not meals

But ...

  • Good schedules for destinations served
  • Fewest cancellations
  • Best on-time performance
  • Safest airline worldwide
  • Fastest gate turnaround
  • Employees appear to be happy
  • Simplest customer-interface
  • Highest customer ratings
  • Most consistently profitable
  • Lots of peanuts