rty-two percent lower than United's, and thirty-nine percent lower than USAir's" (Hartley, 2000). Many aspects of Southwest's strategy have contributed to lower costs. Southwest uses only type of aircraft, Boeing 737's. Using a single type of carrier reduces training, maintenance, and inventory costs. Pilots and ground crew need only be skilled in operations and maintenance of a single type of plane. Therefore, training can be tailored specifically to reduce duration of training and the variety of skills taught. Inventory and storage costs can be reduced due to the Southwest's need to carry supplies for only one type of aircraft. Southwest has the fastest turnaround time on the ground, which results in higher revenues, due to the company's ability to offer more flights daily. "While competitors take more than an hour to load an unload passengers, and to clean and service the planes, about seventy percent of Southwest's flights have a turnaround time of fifteen minutes, and ten percent have even pared a turnaround time to ten minutes" (Hartley, 2000). As previously mentioned, the no-frills approach offered by Southwest Airlines, also greatly reduces costs."In [Fortune Magazine's] January 11, 1999 issue, Southwest was ranked as the number four company to work for in America. Southwest topped the list in 1998" (Southwest Airlines Fact Sheet, 1999). Southwest is eighty-five percent unionized yet has world-best management-employee relations. Unlike the adversarial relationships experienced by other airlines, Southwest is able to maintain a healthy and productive working arrangement. Southwest has flexible work rules. These work rules empower employees, resulting in higher levels of employee productivity and commitment. High employee productivity has allowed the company to carry minimal staff. Southwest maintains the same staffing level, regardless of revenues. This practice has contributed to employee feelings of job securit...
