Scenario

An airline sells something you can't hold in your hand: a flight from one city to another. So its supply chain looks different from a phone maker's. To provide a service, a business acquires the employees, resources, and delivery systems it needs. For an airline like Southwest, that means hiring and training pilots and flight attendants (the employees), buying or leasing planes and jet fuel (the resources), and running a booking system plus airport gates (the delivery systems that get the service to customers). As of its fiscal year 2023 fleet, Southwest flew only one type of plane, the Boeing 737 (its entire 817-aircraft fleet)[1]. Sticking to a single model keeps training and repairs simpler, because every crew and mechanic works with the same aircraft. The service is delivered in person. You show up, board, and the airline flies you where you're going.

Sources

  1. Southwest operated an all-Boeing 737 fleet of 817 aircraft as of December 31, 2023, citing "the use of a single aircraft type, the Boeing 737" as a cost and training advantage. Data as of FY2023. Source: Southwest Airlines Co. Form 10-K, Item 1 Pg 4 "Business — Cost Structure," SEC EDGAR. sec.gov/Archives/edgar/data/92380/000009238024000027/luv-20231231.htm
Question 1 of 425%

Southwest doesn't make a physical product to hand you. To provide its flights, what does its service supply chain mainly involve acquiring?

0 of 4 answered