SustainableOperations: SouthWest Airlines

Table of Contents
Introduction:.................................................................................................................................... 3 Sustainable Operations: .................................................................................................................. 4 Environment: ................................................................................................................................... 5 Use of Recycled materials: .............................................................................................................. 5 Green Operations: ........................................................................................................................... 5 Waste Reduction: ............................................................................................................................ 6 Findings and Results: ....................................................................................................................... 6 Conclusion: ...................................................................................................................................... 7 References: ...................................................................................................................................... 8

Introduction:
The research of sustainable operations has identified Southwest Airlines as a business focusing on developing environmentally reasonableprograms. The following sections provide a brief understanding of the company history and their operations. The next section is dedicated for the review of sustainable operations performed at Southwest Airlines. The environmental effects of the sustainable operations are investigated to provide a detailed insight regarding several programs including green filters, specialty suppliers, and waste reduction. Southwest Airlines was incorporated in 1971 and started its operations with three Boeing 737 aircrafts for three cities of Texas, namely Huston, Dallas and San Antonio. Southwest Airlines earned six Triple Crown awards for the month in the years 1988, 1992, 1993, 1994, 1995 and 1996. It is making profit for last thirty two consecutive years (Carter, Rogers,&Siskins, 2004). Moreover Southwest Airlines is a success story of point to point low cost carrier of United States covering 97 destinations in 42 states with a fleet of 550 Boeing 737 aircrafts and operating 3200 daily flights. Acquisition of AirTran Airways in the year 2011 was also a landmark achievement for the airline. However Southwest Airlines does not offer the traditional services of food on board and special lounges on the airports, none the less it is well placed in the aviation industry. The business has demonstrated through its operations that it values the sustainability offered through environmental initiatives. The organizational focus on fulfilling corporate social responsibly is a positive step. It should be followed by other corporations to develop a sense of regard for clean and green environment.

Sustainable Operations:
The organizations are required to design and develop strategies for business operations that are well managed and provide suitable sustainability. This sustainability can be derived form fulfilling their corporate social responsibility and addressing all environmental issues. The large US corporations i.e. Southwest Airlines is a significant example of developing sustainable operations throughout their business. There are several programs offering sustainable green operations.

Environmentally sustainable business operations are regarded as health and alive and they are also denoted as consuming less energy and using sustainable energy to operate (Jacobsen, 2011). Southwest Airlines follows environmentally sustainable strategy for its business operations. This allows the company to operate using fewer fuels, resulting into increased revenue (Bundgaard, Bejjani, &Helmer, 2006). The airline is following a consistent point to point low fare carriers business strategy. Fuel hedging is an effective strategy of Southwest Airlines which allows the organization to offer relatively low fares for its customers. The fuel prices are most relevant for a low fare carrier. It is also essential to maintain a fleet of aircrafts that has low fuel consumption for the reasons to maintain low cost as well as a clean environment (Grossman, 2008). The functional level strategy for environmentally sustainable operations is aligned with the specific functions of the organizational operations. These operations and process are dealt individually, according to their dynamics and limitations (Evans, Campbell, &Stonehouse, 2003). The examples for functional strategies are mainly waste reduction, green operations, waste re-cycling program, and minority suppliers in logistics. The

company also has a marketing, and advertising strategy to promote the goals of their sustainable operations.

Environment:
It is the obligation of any corporation to maintain and act reasonably to the business environment and the community in which it operates. Southwest Airline has not only developed several environmental programs but at the same time it is involved in increasing fuel efficacy of their aircrafts. It has a dual prong effect on the business, the cost of fuel is reduced for each flight and as a result the operations are optimized. On the other hand the responsibility for the community environment is also fulfilled. The company is fully aware of its responsibility towards clean sky air as well as the environment.

Use of Recycled materials:

Southwest is running several environmental programs to fulfill its environmental responsibility namely Green Filter and their co-mingled recycling stream includes paper, cardboard, types one/two plastics, and aluminum (Southwest Airlines,). This program is not only offering the organization a competitive advantage regarding their sustainable operations but at the same time it enables them to reuse materials at fewer costs. The company is earning profits from the program allowing it to re-cycle waste produced through its own operations.

Green Operations:
The southwest airlines has established a strategy for differentiation based on the issuing a paperless e-ticket through internet, and using automatic machines to issue and

collect boarding passes. The e-services have increased value for client to provide them a reliable and speedy service. The return time of the plane is also an example of providing value to customers by in time return of flights as well as to the company by increasing one trip per day for each plane.

Waste Reduction:
The companys program outlines gathering and re-cycling the waste materials on board. The re-cycling will not only reduce cost but it will also compliment corporate social responsibility. The waste re-cycle program is offered at the facilities at airport and near their headquarters. The green filters program is one of the unique programs offered within the industry. The business is regarded as responsive towards environment and appreciated in the communities around them. The suppliers, employees, and customers appreciate their efforts for a clean and green environment.

Findings and Results:

The women suppliers or disabled owned companies tend to provide services at relatively lower rates as well as work for longer periods with the organization. It is also likely to encouraging the minority suppliers through an easy access portal.The company has significantly modernized its fleet with more fuel efficient aircrafts. They placed orders with new technology aircrafts from Boeing. The company is also offers suppliers programs for minorities, women, and employees with disabilities. The strategy for developing a network of suppliers with all the above mentioned attributes facilitates their mission for community development and as a result they also gain the corporate respect within the community.

Conclusion:
Southwest Airline is running several environmental programs to fulfill its environmental responsibility. The savings and revenues generated through the saving of costs in terms of environment are passed on the customers to create value. These benefits help the organization to not only create a competitive advantage but also help the company to attain a sustainable advantage. The momentum of growth is achieved through several environmental operations. The use of technology to facilitate their ticketing operations is a notable advantage. The ticketing machines are installed on the airports with a vision to reduce paper consumption as well as a facility for their passengers. The ticketing machines on the airports are helpful in reducing labor cost of airport staff as well as the paper used to issue tickets is also consumed in lesser quantities. The companies are using these techniques to avoid costs. Waste reduction and recycling program has offered great advantages in terms of sustainable operations and a fulfillment of corporate social responsibility. The organization is gaining competitive advantage of its vision for environment and community care. The business has well translated its vision into effective strategies for environmental awareness as well as sustainability throughout its operations.

References:
Jacobsen, J. (2011). Sustainable Business and Industry: Designing and Operating for Social and Environmental Responsibility. USA: AS Quality Press. Evans, N., Campbell, D., &Stonehouse, G. (2003). Strategic management for travel and tourism. London: Butterworth-Heinemann. Southwest Airlines.(n.d.). In 2011, southwest airlines recycled more than 2,600 tons of co-mingled waste, diverting it from landfills. Retrieved from http://www.southwestonereport.com/2011/ Bundgaard, T., Bejjani, T., &Helmer, E. (2006). Strategic report for southwest airlines. Informally published manuscript, Economics, Pomona College, Claremont, U.S.A. Grossman, D. (2009, August 25). Low-cost airlines face new competition each other. USA Today. Retrieved from http://www.usatoday.com/travel/columnist/grossman/2009-08-25-low-costcarriers_N.htm