Southwest is a business in the front, party in the back brand. Before all else, Southwest is a bare-bones player that cares first about delivering the lowest fares. The party in the back is about having fun while doing it. When Southwest burst onto the scene in 1989, it challenged its peers by offering the lowest air fare. Since then, Southwest has adopted a fearless, roughneck brand persona that is accentuated by CEO arm-wrestling matches, rapping flight attendants and giving profitable online travel agencies a big F%&# You! Southwest’s rollercoaster ride to the top is a testament of how a budget brand mean more than its bottom line.
How has Southwest made the charismatic, energetic, youthful, rebel persona work for its brand? For one, it’s a differentiator. Every airline needs to be safe, trustworthy and shouldn’t break the bank (for the most part). That’s the baseline criteria for any airline. Yes, Southwest is safe, trustworthy and has THE lowest fares, but the airline elevates its brand position by creating an additional layer of comfort via its brand personality. Southwest is fun, quirky and has a sense of humor. For instance, if Delta, United Air, Virgin America, JetBlue were at a bar, they would be huddled around Southwest — eagerly listening to its whimsical stories. In other words, Southwest is a brand you want to befriend. The budget airline differentiates itself by creating an additional layer of comfort that is re-assuring to its customers. That added comfort has served the airline well…
Southwest is one of the most profitable airlines — posting a profit for the 37th consecutive year in a row. Indeed, the airline net $99 million in 2009. Its success among its peers is astonishing considering the volatile market in the early 2000s. The top five US airlines that went bankrupt and were quarantined to the losers table, while Southwest was the only winner. Though the economy airline took a dip in mid to late 2008 (when it trimmed its flight schedule — which is up 6% from 2008), since its lowest dip on March 2, 2009, the economy-class rebels have made a steady recovery — returning to its peaks in early 2008.
Southwest has the 3rd largest passenger fleets, but like Google, it tries not to be evil. Throughout its history, it has made strong efforts to shed its corporate image. For instance, Southwest’s former CEO settled a legal dispute in an arm wrestling match, its flight attendants have rhymes, and Southwest will do everything to in its power to keep prices down, even if that means giving Orbitz, Expedia and every other online travel agency the finger.
Malice in Dallas
In the Wild West, arguments weren’t solved in court — they were settled at high noon on the streets. No one more embraces the Wild West, band-of-outsiders attitude than its former CEO Herb Kelleher. Instead of wrapping itself in red tape, Stevens Aviation’s CEO challenged Kelleher to an arm wrestling match to resolve the copyright infringement of Southwests then, new slogan “Just Plane Smart” and Stevens Avation’s “Plane Smart.” The loser of individual matches would donate $5,000 to their charity of choice and the overall winner would keep the slogan. Unfortunately Kelleher didn’t pump enough iron (or smoked too much) to beat-out Stevens’ CEO. Video of the events were distributed as internal marketing materials to Southwest employees to illustrate the brand culture its CEO strived for.
Rhyme Master Holmes
Nearly a decade after Kelleher’s arm wrestling one-off, Southwest hasn’t lost its charm and eccentric flare. Flight attendant David Holmes, tired of giving the typical in-flight announcement, decided to rap it. When was the last time a flight attendant rapped the in-flight announcement? If you weren’t riding with Southwest’s Rhyme Master Holmes, probably never. As Holmes notes at the end of the announcement (see below), you are not going to find “that” on United Air.
Circumventing OTCs
Just as tech outlier, Apple gave Adobe Flash the middle finger, Southwest gives a highly profitable online travel agencies (OTA) a big F&@* You. True to its mission of being “THE Low Fare Airline,” Southwest circumvents OTA’s commissions to offer the lowest prices possible on its branded online booking system. Though the short-term profits might be enticing, Southwest understands the value of looking ahead.
Southwest is arguably one of the most successful airlines. On top of its superb financial record, the budget airline has a strong brand persona — one that is rebellious, fun yet not reckless. Through its fun, quirky personality, Southwest creates an additional layer of comfort that is re-assuring to its customers. Furthermore, it had many chances to sacrifice parts of its brand culture for short-term gains but took wisdom in the future. Branding should be about what you want to be and making small gains towards that vision.
Related posts:
Comments
Southwest just announced its acquisition of Airtran. As a frequent traveler, Airtran is actually better than people might think. Now Southwest can polish it up and stamp its preferred brand. With a much larger fleet and new hubs, we hope that Southwest can maintain a strong cohesive brand that stands out in the airline market.