Southwest Airlines in Baltimore

LOGO

AGENDA
Southwest Airlines at BWI Southwest & BWI Problems Issues highlighted by Flight #110 Recommendations

Summary

OVERVIEW, SW AIRLINES
Formed 1967, Dallas, TX Serves 58 destinations (2001) Low cost domestic flights Regional, short hop focus

Rapid growth

RAPID GROWTH
Net Income

$433 M

$474 M

$625 M

1998

1999

2000

THE CONCEPT - ECONOMY TRAVEL

COMPETITIVE ADVANTAGES
Low cost fares Frequent "point to point" flights Single flight platform fleet Empowered decisions

Fast turnaround Cohesive team culture

OVERVIEW, BWI
24th busiest US Airport SW Airlines largest carrier Serves economy airlines Regional hub for east coast

Upcoming expansion

SOUTHWEST AIRLINE PROBLEMS

Management of connecting flights

Understaffed

Multiple booking policy

UNDERSTAFFED

BWI PROBLEMS
Human Resources Problem

Customer Service Problem

Capacity Problem

Passenger Connection Problem

HUMAN RESOURCE PROBLEMS

High Overtime

SWA

BWI

High Staff Turnover

Inexperienced Workforce

Shortage of Employees

Customer Service Problem

Baggage Mishandled Customer Complaints

BAGGAGE MISHANDLED

SWA BWI

CUSTOMER COMPLAINTS

BWI SWA

CAPACITY PROBLEM
Result from increased flights

Gates at / over capacity

Bag sorting facilities over capacity

PASSENGER CONNECTION PROBLEM

One of SWs biggest transfer stations

Result from high rate of transfer city

Increasing volume of passenger connections

More than average connection numbers in BWI

ISSUES FROM FLIGHT #110

Flights schedule FLIGHT 110

Turnaround

Baggages

FLIGHTS SCHEDULE
6 Persons

F1819
B13
Original schedule:
Reschedule:

F232
B15
8:40
9:05

F110
B17
8:15

40 min
8:55

35 min 25 min

Turnaround
15min ?
1. Overtime Work over 16 hours Fuel (<10min) 2. Inexperience Off board CleanOn boardTake off Supervisors 8min + (<3min) + 9min + 30sec 12 groups 20min
Unloading (930) Loading (?)

Baggage Mishandled
1. Employees Communicate with each other 2. System Hardcopy

PROBLEMS, SWA
Management of connecting flights

Understaffed

Multiple bookings policy

RECOMMENDATIONS, SWA
Longer lag btwn arrival & departure

BWI operations lagging behind others

Recommend 5 changes to BWI operation

Changing multiple merger bookingand policy Expansion through acquisition

PROBLEM SUMMARY, BWI

Human Resources Problem

Customer Service Problem

Capacity problems

Passenger Connection Problem

RECOMMENDATIONS, BWI
Balance day and night shifts Hire more people to avoid overtime Improve communication between departments Increase flight frequency Bonus and rewards to lower employee turnover

SUMMARY
SW Air excellent business model

BWI operations lagging behind SWA others

5 recommendations to improve BWI

Changing multiple booking policy 3 recommendations for SWA

HIGH OVERTIME

SWA

BWI

UTILIZATION & REVENUE COMPARISON

RPM=Revenue per Passenger per mile

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RAPID GROWTH, NET INCOME

120

70
50 30

2003

2004

2005

2006

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0%
8.7%

18.5%

17.5%

23.6%

63.6%

84.3%

20%

40%

60%

80%

100%

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