One curious thing about Southwest Airlines is what it doesn’t do.
It doesn’t offer business class. It doesn’t offer food (unless you count the peanuts). It doesn’t go to Asia or Europe. It doesn’t use wide-body jets like 777s. It doesn’t do freight. It doesn’t join any airline partnerships. It doesn’t assign seats. It doesn’t sell tickets on third-party websites (nope, not on Expedia).
If you look at this list, it’s hard to imagine that Southwest is one of the most-liked airlines in the US*.
How can that be?
By not offering food or freight, Southwest removes complexity. This means fewer delays and faster turnaround time.
By not diversifying its fleet, all Southwest pilots can fly any plane since they are the same (all 737s). This means easier scheduling, one set of operating procedures, and fewer maintenance parts.
By not going to too many faraway destinations, Southwest remains efficient. It increases the frequency of existing routes. Its staff is not spread too thin.
In exchange, Southwest offers what most customers value: more flight time options, no change fees, and free checked bags. Above all, consistency. You get what you expect.
And the secret is hidden in plain sight? Southwest has stuck to the same strategy since the 1980s. This strategy isn’t sexy, but it works.
What should we commit to not doing over the long term? What are the vital few things we must say yes to?
*According to this report, Southwest has the highest net promoter score (NPS) among the airlines in the US. NPS measures how likely customers recommend a company’s products to others.
Another fascinating stat: Southwest’s fleet size (740) was about half of United’s (1,400), yet Southwest carried ~20% more passengers (123 million) in 2021.
Southwest’s business model also inspired other low-cost carriers worldwide, such as Ryanair and EasyJet in Europe, AirAsia in Asia, and Volaris in Mexico.
