Southwest Airlines Act II – An Airline in Trouble

Southwest Airlines Act II – An Airline in Trouble

The growing importance of low cost airlines and the future of the airline industry

The case discusses the changes that occurred in Southwest’s culture in the early-2000s and to what extent these changes were related to leadership. It also talks about the problems faced by Southwest, some of which were cultural and others external. the case concludes with an analysis of the reasons for the changes that occurred at Southwest and whether the new CEO Gary Kelly would be able to change the culture for the better and replace Herb Kelleher at the airline.

Issues:

  1. The relationship between leadership and culture and how charismatic leaders can influence the elements of culture at organizations.

  2. The impact of change in leadership over culture and morale

  3. The reasons for problems at an organization that had an enviable record of profitability and a laudable culture. 

  4. The importance of succession planning in organizations and the issues involved in the same

  5. The growing importance of low cost airlines and the future of the airline industry

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