Introduction
While it is essential for a company to understand its goals, the final results are unreachable without a clear step-by-step plan. Southwest Airlines is no exception to this rule, as there are many complex changes that the company must accept in order to remain at the top of low-cost air travel companies. This essay aims to analyze what steps must be taken by Southwest Airlines to optimize its operations in accordance with the SWOT analysis from the previous paper.
Implementation of Changes
As has been discussed, the company has a number of issues related to its outdated policies. While Southwest continues to show profits, there are signs that suggest that the firm’s strategy must be reassessed and reimagined. The company has built a highly optimized value chain, yet it needs some additions, such as new destinations, services, and planes. Its fleet and its employees are the primary sources of change, although new leaders can provide an instant result as well.
Southwest Airlines has many weaknesses and threats related to its connection with Boeing. Although the company made attempts to break this connection in the past by trying out Airbus A220, the new deal with Boeing proves that Southwest is unable to make such a change instantly (Koenig, 2021). The company must find a way to keep its strength intact since, for example, maintenance costs for Southwest remain relatively low through the usage of Boeing planes (Inkpen, 2017). Another step towards the desired changes is to establish a new deal with the company that can provide planes alongside their parts, preferably ones that will enable new services, such as cargo transportation.
Changes in leadership positions can help Southwest with this process. It has been recently announced that the CEO of the company, Gary Kelly, will transfer his post to the current executive vice president, Robert Jordan (Shapiro, 2021). This crucial change is supposed to bring a new perspective on the company’s development and help it with revising its course of action. This step can instantly change the direction of the company.
Employees possess the power to change the company as much as its leaders. Currently, the company’s pilots are well-trained to pilot Boeing planes only, making it difficult to implement other types of aircraft (Inkpen, 2017). There might be a necessity to sacrifice this strength due to the uncertainties introduced by the recent lockdown. The lack of training among staff to pilot planes from other manufacturers can prevent Southwest from expanding into cargo transport and from providing in-flight services that some customers wish to have. A more diverse skill set will significantly benefit the pilots, as they are especially sought after by the labor market (Arnold, 2021). Therefore, one of the initial steps must be setting up additional training courses for pilots.
Conclusion
In conclusion, there is a need for Southwest Airlines to revise its approach to cost optimization through the gradual implementation of new services that will give the company more stability through diversity. It is vital for the company to begin the preparations for changes in the fleet ahead of time by providing training courses for its pilots. Then, the changes in the leadership of Southwest will offer a fresh look at its current deals. One of the deals that must be reviewed is the close partnership with Boeing. These changes will enable Southwest Airlines the ability to fully diversify its portfolio, making it more stable and resilient to sudden crises.
References
Arnold, K. (2021). Even airlines like Southwest are having a harder time recruiting new workers. MSN. Web.
Inkpen, A. (2017). Southwest Airlines. Thunderbird: School of Global Management.
Koenig, D. (2021). Southwest Airlines orders 100 Boeing 737 Max planes. Yahoo News.
Shapiro, A. (2021). Southwest Airlines’ travel demand rises above 2019 levels. MSN. Web.