The Role of Efficient Human Resource Management in the Airline Industry: A Case Study of Southwest Airlines and American Airlines

Austin, Theresa

The Role of Efficient Human Resource Management in the Airline Industry: A Case Study of Southwest Airlines and American Airlines

Persistent URL

http://hdl.handle.net/10456/34186

Author(s)

Austin, Theresa

Date Issued

April 3, 2013

Abstract

Since its creation in 1967, Southwest Airlines has managed to become the largest low-cost carrier in the United States, as well as one of the leading airlines in the nation. The goal of this paper was to determine whether efficient human resource management (HRM) practices enhanced company strategy and contributed to sustained competitive advantage in the airline industry. In a case study analysis, the cultures and human resource management practices at Southwest and American Airlines were juxtaposed in order to identify the similarities and differences in their strategies. The sources used to analyze the airlines’ strategies included annual reports, financial data, and airline ratings. Once analyzed, financial performance indicators—net income, net operating income, available seat miles, and revenue passenger miles—were used to asses the success of each airlines’ strategies. Analysis indicated that there is no direct correlation between efficient human resource management practices and competitive advantage in the airline industry. Findings indicated that Southwest performed better than American financially, but both airlines had similar HRM practices with very different cultures.

First Reader(s)

Onyeiwu, Stephen Z.