Business ethics and corporate citizenship at Southwest Airlines

Ethics in Southwest Airlines

An Overview of the Business Ethics of Southwest airlines

How Southwest Airlines handle the various crises?

The ethical responsibility of southwest today and for the future

Ethics in South West Airlines

How can one single company enjoy so much success in its chosen field of operations? What is the business ethics of the company that has it one of the chosen best among hundreds of others and has it listed in a most coveted position as one of the best corporate companies of the world? The business ethics of the company must be analyzed in detail to gain answers to these questions and in this paper we have provided an overview of the business ethics of Southwest Airlines. The Southwest Airlines has successfully weathered many different crises through the years, and has remained as one of the top companies in the United States of America, today. Thus next we go over to discuss as to how Southwest Airlines is able to tide over its various crises in the backdrop that the airline industry today is facing losses, and more and more companies are declaring bankruptcy and are closing down. Finally, what is important to remember is that Southwest Airlines is today, one of the better managed airlines that exist, not only in just the United States of America but also probably in the entire world. This goes to say that with the right employees, and with the right attitude, and with the right values, the organization will is definitely succeeding and prospering in a time when others of a similar kind have downed their shutters and will continue to do so in future.

1. Introduction

Best 'Corporate Citizenship Awards' means that service of excellent quality is being rendered to a variety of stake holders, and if one particular company can get a listing among the top hundred Best Corporate, then that company can be taken as being one of the very best in terms of corporate citizenship, business ethics, and so on. The social ratings for these recommendations are made by KLD Research & Analytics of Boston, and the list ranks service made by the companies according to seven important stakeholder groups, which are community, stockholders, minorities and women, environment, employees, non-U.S. stockholders, and customers. The company South West Airlines has been placed among the first hundred of the '100 Best Corporate Citizens' list, and the company must indeed be proud to be included on the list for the fifth consecutive year from the time of the creation of the list. (Hundred Best Corporate Citizens for 2004)

It has been stated very often that in the troubled state of the airline industry, the Southwest Airlines, which stood at number 11 this year, 2005, is indeed a top rated performer, and has been consistent in its performance through the years since its inception. A Dallas, Texas-based firm, the Southwest Airlines has in fact recently announced its 32nd quarter of consecutive profitability, and while in the year 2004 it's net income was $313 million on revenues of $6.53 billion, it must be remembered that this was the year in which the basic costs for jet fuels showed a sharp increase of more than a 20%. The CEO of Southwest Airlines, Gary C. Kelly, had this to say, that the company could still afford to fly their airplanes at the low airfare demanded by their customers, only because of constant "ongoing efforts to improve productivity," and at the same time attempting to sustain profitability, as well as growing their route systems. The word 'productivity' for Southwest Airlines meant 'hard-working employees', and therefore, it comes as no big surprise that the Airlines managed to rank among the best in the category of employees. (100 Best Corporate Citizens for the year 2005)

Donna Conover, the executive Vice President of Customer services, states that ever since she joined the company, more than twenty eight years back, she had always felt that the employees of the company were the greatest assets for the firm, and perhaps it is because of the policy that the company follows, which is that of never ever dictating pay cuts to its employees, that it has managed to keep all its employees happy and satisfied, and working hard at all times. This was seen in the fact that employees by themselves, during the Gulf War of the 1990's, when fuel costs skyrocketed, voluntarily reduced their pay for some time in order to cope with the escalating costs of fuel. In a similar manner, after the debacle of September 11, Southwest Airlines employees volunteered to take cut costs on their wages, so that the company may be able to cope better with its reductions in flying schedules. This type of loyalty for the company has as yet been unrivalled. (100 Best Corporate Citizens for the year 2005)

III. How Southwest Airlines handle the various crises?

It is indeed a fact that the airline industry today is facing losses, and more and more companies are declaring bankruptcy and closing down. A few examples are U.S. Airways, which is seeking the elimination of more than 2,000 mechanics, cleaners, other ground personnel, and stock clerks. Out of the 848 cleaners, 798 would lose their precious jobs, and the remaining personnel would have to accept to cut their pays by 15%. The number of mechanics too would have to be cut from 3,000 to 1,800, and would have to put up with an 8% pay cut, and in the same way, stock clerks would be cut from 400 to 268, and the reduction in their pay would be about 15%. All these measures, stated the U.S. Airways, the United States of America's second largest carrier, would save the airlines about $268 million a year, and when the company filed for bankruptcy in the year 2004, the second time in as many years, it was also the third time that the workers of the Airways had taken concessions. (U.S. bankruptcy judge terminates contract of U.S. Airways workers)

While their flight attendants had already given up more than a full third of their pay, retirement and various other concession plans for the workers were also cancelled, thus saving the airlines $1 billion over the next few years. Other companies too are in the same situation, and there are significant losses to these companies. However, one notable exception is that of Southwest Airlines, which will supposedly show a profit in the next year, despite the massive losses; in spite of Bush's claims of economic recovery, and also the highest ever fuel costs in recent years, and the increasing numbers of low cost carriers. This year too, the situation will be similar with heavy losses being suffered by the airline industry because of rising fuel costs, and also heavy losses in jobs, and the resulting payoffs, because of which more than tens of thousands of people would be left without jobs. Most airlines would also be forced to sell out their long-term fuel contracts in order to raise more money to survive. (U.S. bankruptcy judge terminates contract of U.S. Airways workers)

The so-called 'Southwest's Chick's Dozen', according to which a list was created enlisting the various companies that could be 'bought', Southwest Airlines was a good contender up until the end, at which time it lost out to 'Medtronic'. According to the list, flying in Southwest Airlines is an enlightening experience, and one individual states that when she was flying in Southwest Airlines, the air was full of fun and laughter, and the flight attendants would say things like, "for those of you who are from the Dark Ages, and do not know how to fix the seat belts, here goes," and also things like, "Look out for an emergency outlet, because if there is an emergency, we will be the first ones out of here," and so on. That is the type of fun that passengers and the crew on board Southwest Airlines generally have, and perhaps this is why this airline is preferred over the others. (Unscrambling Southwest Airlines)

The Southwest Airlines has successfully weathered many different crises through the years, and has remained as one of the top companies in the United States of America, today. In the year 2005, for example, the Southwest Airlines, which was once known as the scrappy underdog in the airline industry, managed to carry more domestic passengers in its flights than any other airline in America. This particular company, not like all its numerous competitors, has been in fact profitable without fail for a number of years, consistently. In other words, it has managed to face oil crises, recessions, and weather crises, and the latest Terrorist attack that occurred in September 11, 2001, all of which have affected other airlines in a drastic manner. In recent years, Southwest Airlines has become even more aggressive in its growth, and this is why the company entered the Philadelphia market in the year 2004, and made plans to enter the Pittsburgh market in 2005. (Southwest Airlines, 2005)

It must be remembered that it was in the year 1978 that the U.S. Commercial Airline industry became permanently affected when the then president Carte signed the Airline Deregulation Act. Before this deregulation, the Civil Aeronautics Board would regulate airline route entry and exit, and mergers, acquisitions, and also passenger fares, and return rates, and so on. Now with the deregulation, the airlines were not allowed to operate on the assumption that there were only two types of market segments, that is, those who could afford to fly, and those who couldn't. With deregulation, the prices decreased dramatically, and now numerous new firms were able to enter the market, and the financial impact of this phenomenon on commercial airlines was devastating. In addition, there was a severe fuel crisis in the year 1979, and when the air traffic controllers went on a strike in 1981, it only added fuel to the fire, and when the recession happened during the 1980's, more than a huge one hundred and fifty numbers of airlines, many of them startups, collapsed and closed their shutters.

Now there was stiff competition between the remaining airlines, and in order to compete with each other, these companies had to control the inflation and other associated crises, and cope with the demands being made on them for better airfares and cheaper facilities so that everyone could fly. However, the Southwest Airlines one of the few limited exceptions that was not affected adversely, and could still cope well, and unlike other airlines, where there could be different air fares for different classes of people, in Southwest Airlines there was nothing of the sort. In addition, the Southwest Airlines was the only airline that would operate without major hubs, despite the fact that certain cities like Phoenix, Houston, Dallas, and Las Vegas were increasingly becoming important transit points for the airlines. A 'no-frills' approach was used, wherein no meals would be served on the flight, and there would be no prior reservations. When asked why the airlines used such an approach, the CEO Kelleher explained that when the airlines used to operate with a mere four passengers on board, the idea of reserving seats was laughable, and then later on, when it was discovered that it would be possible to turn the airplane quicker at the gate when it was empty rather than if it was full, it meant that time would be saved, and this in turn meant that the fares could be lowered. (Southwest Airlines, 2005)

It was in August 2000 that a Southwest Airliner, 737, en route from Las Vegas, NV, to Salt Lake City, UT, which was on a scheduled flight, was involved in an accident, but not of the kind that is generally described by Airsafe.com, which describes fatal accidents involving aircrafts. In this particular case, a nineteen-year-old passenger happened to become belligerent and attempted to enter the cockpit of the aircraft. When he was subdued by the crew and the passengers on board, he was escorted to his seat, at which point he attacked another passenger. Soon he became unconscious, and when the flight landed, the unconscious passenger was taken to a hospital, where he died several hours later. (The most recent fatal events in the U.S., or involving U.S. Carriers)

The cause for the death was found to be a drug overdose, and neither the aircraft nor its passengers had anything to do with that unfortunate boy's death. Although the death was classified as a homicide, and the death was listed as due to 'suffocation' no passengers were charged with anything on the flight, and since a part of the blame for that passenger's death was due to certain of his own actions, it could not be described as a fatality related to the flight. (The most recent fatal events in the U.S., or involving U.S. Carriers) In March 2000, Southwest Airlines 737-3000, which was on its way from Las Vegas to Burbank, upon its arrival, happened to overrun the runway, and came to rest on a street that adjoined the airport. None of the crew of five, or the 137 passengers aboard were killed, and only two passengers suffered minor injuries. (Significant Events since 1971 for southwest Airlines)

What actually happened was that the flight 737-300 which had touched down at approximately 182 knots, collided with a metal blast fence and an airport wall at 32 knots, about 20 seconds later. The aircraft sustained extensive damages, and according to Southwest Airlines, this flight was supposed to be the first among five others that the captain was supposed to undertake over the next three days. (Aviation Accident Brief) However, one important factor to be considered is the fact that ever since its inception in the 1970's; the Southwest Airlines has not ever had a fatality, as it is defined by the Air Safety Board. (Significant Events since 1971 for southwest Airlines)

When Southwest Airlines announced its decision that it would start charging overweight passengers for the fare of two seats instead of one, in the year 2002, it became a case for bad publicity, and the PR team was not able to deal effectively with the bad publicity that followed. What this means is that the PR and publicity for a company must be of advantage to the company, or else the company would be faced with significant losses. Therefore, in cases of accidents or some such events, it is because of the proper and timely handling of the PR in Southwest Airlines that it was able to avert bad publicity and the harm that it can bring upon those involved. (When PR goes really bad)

IV) The ethical responsibility of southwest today and for the future

What is important to remember is that Southwest Airlines is today, one of the better managed airlines that exist, not only in just the United States of America but also probably in the entire world, and the best example of this type of efficient management of crises and the rewards that it can reap was seen soon after the terrorist attacks on the World Trade Center in the U.S.A. On September 11, 2001. It must be remembered that this was the time when most airlines started to downsize and layoff in a big way, and also grounded their aircraft and disrupted the smooth running of their services. Southwest Airlines however, did nothing of the kind; what it did was amazing: not even one single aircraft was grounded, and not one single employee was laid off. The reason was that Southwest Airlines had followed an extremely effective marketing strategy soon after the terrorist attacks, and this strategy in fact helped terrified passengers to overcome their fear of flying and make attempts to fly again. (Marketing Study of Southwest Airlines)

One eyewitness account states it all. Mr. Fiorello B. Abenes, PhD., was in fact scheduled to tour through Pentagon, the center of the terrorist attacks, on that very same day, but perhaps due to divine intervention, did not do so, although his wife and himself had been visiting their grandchildren about six miles from Pentagon. He was in fact scheduled to fly out in Southwest Airlines the Sunday following the attacks, but no one was able to state clearly whether there would be flight out or not, and he had to reach home for an important meeting at the scheduled time. In his own words, Mr. Fiorello Abenes says, "Southwest came through" for him, and that it was the very first airline that flew out of BWI on Sunday, at its scheduled time. Although the clever and irreverent jokes had gone, and the airline, instead of funny advertisements, started to issue patriotic advertisements, the fact that it came through without a single hitch when it was supposed to has indeed made a large impression on many people who had been stranded and abandoned without news of when exactly they would be able to reach home.

An important fact to note here is that the positioning of Southwest Airlines for the purpose of publicity is that of a product, and the product here means 'travel', and it considers as competition, not only other airlines, but also any other mode of transportation. It lays primary emphasis on travel service in markets where the keyword is cheaper air fares, more convenient timings, and more frequent, as well as more conveniently timed flights. This is partly achieved by its point to point route system, unlike other airlines which believe in the hub and spoke system. What this means is that southwest Airlines gives its customers non-stop service form one point to another, and this in turn minimizes delays and hold ups due to any reason, and also eliminate delays due to stopovers and connections, and all this means that more than a huge 77% of all Southwest Airlines customers are able to fly non-stop, thus saving precious time and resources, and well as money. (Marketing Study of Southwest Airlines)

The basic operations strategy that is utilized by Southwest Airlines is that if passengers are able to reach their destinations when they want to reach there, and at the lowest possible fares, and they also have a god time and a lot of fun doing it, then why would they even attempt to fly any other airline? Another important aspect is that the Southwest Airlines believes in the basic segmentation of their customers, and this especially holds true for the senior citizens who fly their airlines. Special treatment is awarded to this segment, and this means that this group becomes completely loyal to the airline. One perfect demonstration of this fact is the time soon after the September 11 attacks, which left many other airlines crippled and handicapped.

Meanwhile Southwest Airlines did not layoff a single employee, nor did it face any losses of any kind, and in part, perhaps this was due to the support given to the Southwest Airlines by the loyal senior citizens, and one particular woman, Ann Mcgee Cooper, who stood by the airline that she loved so much. This woman, after September 11, when airlines were in a state of limbo, wrote to Southwest Airlines to say that she had been doing her bit for the company by persuading her family, friends and others, to fly with Southwest Airlines. She not only purchased tickets on their behalf, but also bought company stock, and she also enclosed a check for the amount of $50, stating that she felt that the airline needed it more than she did. This is the type of loyalty that customers exhibit for Southwest Airlines and the Airlines in turn banks on such loyal support, to keep the business thriving with profits where other companies have been failing miserably. (Marketing Study of Southwest Airlines)

It is an important fact that Southwest Airlines has been recognized time and again for its ethical responsibility and the manner in which it handles its numerous customers. Perhaps this is the reason that the company managed to receive one of the most coveted awards for excellence, in the year 2003. This was the 'George Kozmetsky Award for Branding Excellence in the 21st Century', which was set up by the Institute for Innovation Creativity and Capital, or the 'IC2', as it is known, and the Center for Brand Research at The University of Texas at Austin. The award was given to Southwest Airlines in recognition of its innovative, creative, and ethical business practices. Said Neal M. Burns, director of the Center for Brand Research and an advertising professor at the University of Texas at Austin, today, when corporate credibility and moral values and ethics are being increasingly questioned in all areas, Southwest Airlines has been able to stand out as an exception to the rule. The brand named 'Southwest Airlines', and the ability of the company to carry on the name to all the various levels of the organization, and also to all their various customers, is exactly "what makes the brand a reality." (Southwest Airlines receives first Kozmetsky Award for Branding Excellence)

The prestigious award was given to Southwest Airlines based on a number of important reasons. One of them was that Southwest Airlines followed several innovative as well as creative branding practices, which in the long run managed to deliver substantial profits and benefits for all its customers. Another important reason quoted by the panel of judges was that Southwest Airlines had an excellent vision of the future, and it also had the innate ability and the confidence to carry through the success it deserved, based on its successful brand name. The company was, in addition, quite renowned for its integrity and for its ethical behavior and also its ethical treatment of its customers, its partners, and the most important of al, the fair and just treatment of all its numerous employees.

A major part of it was in the manner in which the company acknowledged and accorded due respect to all the different cultures and beliefs of people that it was involved with, and an unbiased and an unprejudiced treatment of all these people. In fact, the Awards Committee also stated that it felt that the very "depth and breadth of the Southwest Airlines brand and their regard for all their stakeholders was striking," and this despite the fact that there was stiff competition in all aspects of the business. Southwest Airlines also exhibited a consistency in its brand name, in all aspects of its operations, right from the baggage handler, up till the executive office. Ethics, loyalty, and an underpinning of strong values and respect for all other cultures was strongly evident in all areas of its operation, and the basic stand that the company would take at all times would be that of upholding ethical and moral values. (Southwest Airlines receives first Kozmetsky Award for Branding Excellence)

It was September 11, the day of the devastating attacks, and soon after the attacks, almost all major airlines decided to cut their workforce in a substantial manner, just so that the company would be able to survive in the face of the huge losses that they were forced to bear because of the attacks. However, one must remember that one particular airline did not do anything at all to cut costs, and that airline was Southwest Airlines. This was one company that recognized the commitment that it had made at an earlier date to its customers, as well as to all its numerous employees, which it considered as the central force behind the success of the organization. (That Still Small Voice)

One individual had this to say about Southwest Airlines, that on September 11, the CEO, Herb Kelleher, found the time to call up the family of every single Southwest Airline pilot, in order to reassure the families that their loved and precious member of the family was safe and sound. It must be said that Herb Kelleher and his team of personnel behaved in what can only be termed as a 'socially responsible and committed, and an ethical manner, giving due respect to ethical principles'. This is perhaps the main reason that the Southwest Airlines was able to far out surpass its competition, and was able to enjoy profits at a time when other airlines were downing their shutters and closing down their businesses. The organization operates in such a manner that ethical principles prevail in both deed and in manner, and this is enough to outrace the competition. (That Still Small Voice)

There is a general consensus that if ethical practices that the company practices were to be instilled in newly hired employees, then that would in it be sufficient to uphold ethical principles and traditions. It is also a fact that as new and fresh graduates goes out to work after years and years of academic preparation, and they then move into an internship, most employers are faced with certain difficult decisions. The problem is how to go about training these graduates in maintaining ethical behavior in the workplace, and how to make them see that ethical principles must e upheld in the strictest possible manner, according to the norms dictated by the organization. In general, when people are hired for a job, in certain specific positions, they learn almost informally about workplace and corporate culture, and corporate behavior. However, this doesn't mean that it would be a matter of ease for the new employee to learn these behaviors; on the other hand, comprehension in itself would take a long while, and attempting to uphold these values would take longer. (Instill ethical practices in new hires)

It is a matter of fact that very few employers in general learn to instill and develop ethical practices and behaviors with their new employees and trainees, and what they do instead is to orient new hires to the new workplace and environment, and familiarize them with their duties, and stop at that. Afterwards, it is up to the new employee to find out for himself the corporate culture of his workplace, and then to uphold it. A few workplaces however, do have coaches or mentors who would guide them in their new job, and teach them the corporate values and ethical standards that are followed by the company. Despite all this, new hires and employees may inevitably fail to imbibe the values of the workplace, and there are three important reasons for this. One is that most employers fail to identify the most important and key ethical positions within the organization, and the general practices that are followed in the organization, according tot the prevalent corporate culture. This means that any ethical values and traditions of the organization would have to be learnt from the management, or through a long process of observation and imitation; these rules are generally not written anywhere.

Another important reason may be that most employers may have exceptional and notable ethical values and traditions, but the basic operational system within the organization may be completely different. Therefore, how can the new employee tell the difference? The two basic ways in which to tell are either through rewards or through a feigned ignorance. Rewards can be either tangible, in the form of cash or promotions, or they can be intangible rewards, like a recognition for a job well done, or an affirmation of the good work. At times, however, in some organizations, values as well as organizational ethics and traditions will be clearly written down, and in such a way that they would be absorbed by the new team of employees without any difficulty whatsoever. (Instill ethical practices in new hires)

However, even in this there will most definitely be a problem, which is that such employees are more often than not, never given the tools with which they can cope with ethical and moral dilemmas during the course of their work. Therefore, it must be stated that it is only when ethical training is offered to new recruits and employees that the results would be extremely gratifying. This is exactly what happens at Southwest Airlines. Within this organization, practical exercises are played out so that the new hires would be able to absorb the atmosphere of corporate values and ethics, which are tinged with fun and humor. Mutual care, fun, caring, and so on are some of the other values that are imparted to the new employees, and a team of trained 'companions' or 'pals' see to it that these are the values that are absorbed by the employees when they join the organization.

These pals, or in other words, the better experienced personnel within the organization, stand with them at this stage, and help them through some difficult decisions and assessments, especially with regard to co-workers and also with their customers. When they continue working for the company, they do in fact imbibe the values that the company upholds, and they learn to act out those values in the course of their various duties within the organization. When this happens, what also happens at the same time is that the employees develop a very strong sense of loyalty not only to the Southwest Airlines, but also with one another, and with the customers. Therefore, they not only make money, but also create a certain amount of excellence through a commitment and a loyalty to ethical values and moral traditions. (Instill ethical practices in new hires)

It is important to note that it is generally the inherent corporate values of an organization that has the function and the ability to be able to fulfill all the various corporate goals of the organization. It must also be noted thereafter that corporate values can indeed be harnessed in order to build sustainable and profitable organizations, like for example, the Southwest Airlines, which has been a veritable leader in ethical and moral leadership, which has enabled it to sail through crises of various kinds, and eventually emerge as the inevitable winner, enjoying all the profits due to it. It is a fact that when corporate values serve as a basic foundation for the running of the business, then that particular business would most definitely be able to gain an important strategic advantage that would finally be revealed in the financials. (Financial Executive: Corporate Values Stimulus for the Bottom Line)

These are the innate ethical values of the organization that impact the bottom line in an infinite variety of ways, and they serve the following important functions: they serve to avoid penalties of any kind, including criminal, they also avoid lawsuits, fines and other penalties of the like. They help to build customer loyalty, and also manage to drastically reduce hiring and training cots that all organizations would naturally have to incur. Thefts, and other similar anti-company would be dramatically reduced, and thereby increase sales and customer loyalty to the organization. Overall community goodwill would be created, and this fact can prove to be of immense advantage to tax advantages, and to strategic alliances, and also to recruitment opportunities. Therefore, it can be said that values as such encompass numerous qualities, traits and commitments, and when these values are inherent within an organization, then the company would be bale to enjoy an infinitely better relationship with its customers, as well as with its numerous employees, and with the management.

While some values dictate morality and all its related aspects of honesty, integrity, and uprightness, and truthfulness, when taken at a corporate level, these values must be considered in relation to the relationship that the organization has with the community in which it works, as well as with its global citizenship. According to the former SEC Chairman, Arthur Levitt, "ethical behavior and governance are as important to business as productivity," and according to the Dow Jones Sustainability Group Index, those companies that regularly use the so-called 'triple bottom line' measures that consist of economic, ethical, and environmental sustainability consistently outperform other organizations in their profit margins. This explains how important ethical behavior is to an organization, and why all organizations would do well to follow certain ethical and moral values, since no one can dispute the fact that it is the moral and ethical values that would stand a company in good stead when there is need to do so. (Financial Executive: Corporate Values Stimulus for the Bottom Line)

There are numerous companies that claim that they promote ethical values in their workplace and within their organization, but the fact, more often than not, is that they either cannot or will not adequately promote these values within their organization. A perfect example is that of Enron, which had as its value statement, the promotion of 'respect, integrity, communication, excellence', but to no avail, because it was Enron that was caught in one of the biggest financial scams ever. Therefore, the creation and maintenance of a culture that would be able to actually 'live' all the ethical and moral values of the organization at all its various levels of operation would be the best possible way to reap all the bottom line benefits of the firm. Southwest Airlines is one of the better known 'value-based organizations', and in the same way as most other organizations have successfully created a 'Total Quality Management' practice, which includes the creation of a set of moral and metric standards that would inevitably raise the quality standards of the organization, Southwest Airlines has in fact managed to become a really successful and efficient value-based organization.

The more important core values of the company are these: work should always be fun; therefore, one must enjoy one's work while doing it. At the same time, work is very important, therefore, do not spoil it by being very serious about it, and enjoy it while working. Thirdly, one must remember the fact that people are very important, and each individual person makes his own difference to things. These are the values that Southwest Airlines translates into important business practices, and all new employees learn these values when they join the company, and all attempts are made to see to it that these values are always upheld, whatever may be the situation. (Financial Executive: Corporate Values Stimulus for the Bottom Line)

Herb Kelleher, the Executive chairman of Southwest Airlines, says that in all the thirty years of its operations, the company has faced stiff competition with others, in terms of more airplanes, more number of flights, and more number of cities being covered, more advances in technology, more advances in marketing techniques, and more number of customers served. However, what must be noted is the fact that no other airline has been as consistently profitable as Southwest Airlines, and the high growth rates demonstrate by the company, and also its high rate of customer satisfaction, are all factors that have sustained its position through t he years, and will do so in the future as well. The policy of the company, which states that every person within the organization is a virtual leader, has come a long way in providing employee motivation and satisfaction, wherein persons who have innate leadership qualities and the capacity and the determination to lead and to believe in themselves are given preference over others when hiring. Similarly, only those people who possess the right people skills will be hired, and care will be taken by the management o see that no one single person is discriminated against for any reason at all. (Herb Kelleher, Executive Chairman of Southwest Airlines talks about Building Leaders and how their Innovative People-culture has lifted the Airline to Success)

V. Conclusion

This goes to say that with the right employees, and with the right attitude, and with the right values, the organization will most definitely succeed, and prosper in a time when others of a similar kind have downed their shutters. Therefore, it can be concluded that the Southwest Airlines is one such company that would uphold its values no matter what, and this has stood it in good stead in times of adversity, and has made it one of the best companies that exist today and would continue to be so in the future.