Question

What are the important long-term issues relevant for managing capacity, revenue, and customer satisfaction for Southwest Airlines?

Answer 1

What are the important long-term issues relevant for managing capacity, revenue, and customer satisfaction for Southwest Airlines?

Some long-term issues relevant for managing capacity, revenue, and customer satisfaction for Southwest Airlines includes proper utilization of the company’s fleet of airplanes. This is a relevant issue because it directly affects capacity, revenue, and customer satisfaction if planes are not being properly utilized. For example, all three of these elements will decrease if half of Southwest’s fleet was grounded and flights had to be cancelled, or all three elements would increase if the entire fleet was being utilized to its fullest extent. Another long-term issue that is relevant to these three elements is turnaround time at Southwest gates, because as we learned, as little as a sixty second delay can create a decrease in capacity, revenue and customer satisfaction.