88 AIRLINER WORLD JUNE 2018
W
ith a record annual
net income in 2017
of $3.5bn and a 166th
consecutive quarterly
dividend just paid to
shareholders at the end of March, the
milestone achievements of Southwest
Airlines continue to grow, seemingly
inexorably. It is, of course, recognised
as the originator of the classic low-cost
business model, which enabled it to
offer low fares. And still it outperforms
its competitors. But has the carrier
learned anything from others who have
added their own modifications to the
model? Chief operating officer (COO),
Mike van de Ven, considers the
question before providing some
People, Purpose and Performance
background to the model.
“When we started, we were totally
focused on offering everyday low fares,
which require everyday low costs,”
he begins. “We were also just laser-
focused on great service. Back in those
days, we used the word ‘love’ a lot. We
were at Love Field [its Dallas
headquarters], LUV was our ticker
Since its inception
Southwest Airlines has
almost exclusively operated
Boeing 737 aircraft (except
for a few leased 727-200s)
and today is the world's
largest operator of the type.
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