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Southwest Airlines contd...
AIRCRAFT TURNAROUND AT SOUTHWEST
A quick turnaround strategy was more relevant to Southwest than to its
competitors as it had a point-to-point flight between cities rather than a
hub-and-spoke network3 . A hub-and-spoke system was characterized by longer
wait time for both passengers and airplanes, more planes, extra computer
systems, extra salaries to ground staff and additional commissions to travel
agents. In addition, the airlines had to pay rent for the gates, as the
planes were kept idle at airports waiting for the connecting flights.
Recognizing these disadvantages, Southwest persisted with its point-to-point
flights between cities. However, according to industry sources, a hub
generates up to 20% more revenue per plane than a comparable point-to-point
flight. Airlines with point-to-point flights had to be extremely
cost-effective. There are many ways of being cost-effective such as cheap
labor and cheap equipment. But Southwest chose quicker turnaround of its
aircrafts.
[2] A registered trademark for a certain kind of aircraft loading bridge,
which allowed passengers direct access to an aircraft from the terminal. |




