Company Overview

Based in Texas, Southwest Airlines has given the big airlines a run for their flight miles in the short-haul, low-fare market for more than 30 years. Southwest’s no-frills service (single class, no meals) and ticket-less travel helps it keep fares low. What is more, its fleet consists entirely of Boeing 737s, a practice that reduces Southwest’s training and maintenance costs.

But keeping training and maintenance costs low might not always be an attribute. In March 2008, the FAA proposed to fine Southwest $10.2 million for missing required structural inspections on 46 planes two years before, causing the company to launch an internal investigation and hire a consultant to review its maintenance program. Southwest also placed three employees on administrative leave and removed about 40 planes from scheduled service to inspect them, causing some flights to be canceled and some bad press.

Southwest has been unable to escape the struggles felt by every major airlines due to rising fuel prices. The carrier continues to expand into new cities, but not at the pace it had originally planned. In 2007, Southwest slowed its expansion plants and acted reacted to oil price spikes and expiring hedge contracts by offering buyouts to more than 8,500 employees (a quarter of its workforce), leading to the departure of 600 employees who could then be replaced with lower-paid workers. In 2008, the company announced plans to refocus its resources from smaller markets to higher-demand cities. The airlines added a new daily nonstop flight between Denver and San Antonio International Airport in April, and said it would also add nonstop trips between Denver and Portland, Indianapolis, Las Vegas.

The company has also communicated plans to partner with more airlines serving foreign markets, through a code-sharing agreement it held with the now-defunct ATA Airlines. In 2005, Southwest launched a “code-share agreement” with ATA Airlines that allows Southwest customers to book ATA flights. The code-sharing deal came in handy when the airline could, through the agreement, sell tickets on ATA flights to Hawaii before ATA filed for Chapter 11 bankruptcy and closed in April 2008.

Those seeking a job with Southwest should consider the three components that make up “The Southwest Way”: Warrior spirit, a servant’s heart, and a “fun-LUVing” attitude.  Characteristics the company looks for in new recruits fit into these categories and include a desire to be the best, courage, a sense of urgency, perseverance, ability to innovate, and to be egalitarian. They also don’t want employees that take themselves too seriously, and can maintain perspective and balance, be a passionate team player, and enjoy their work.