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    Ali Malik
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    Southwest Airlines reduced its aircraft turnaround time by 50% compared to the industry average, which significantly lowered its landing fees and other rental costs. By turning aircraft around faster, Southwest spent less time at airports and paid lower landing fees as a result. This 50% reduction in turnaround time saved Southwest approximately $70 million in landing fees and rentals compared to the industry average, representing a nearly 48% reduction in operating expenses for those fees.

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    Southwest Airlines reduced its aircraft turnaround time by 50% compared to the industry average, which significantly lowered its landing fees and other rental costs. By turning aircraft around faster, Southwest spent less time at airports and paid lower landing fees as a result. This 50% reduction in turnaround time saved Southwest approximately $70 million in landing fees and rentals compared to the industry average, representing a nearly 48% reduction in operating expenses for those fees.

    Direitos autorais:

    Attribution Non-Commercial (BY-NC)
    Baixe no formato DOC, PDF, TXT ou leia online no Scribd
    Sinalizar o conteúdo como inadequado
    8 visualizações2 páginas

    Assignments W

    Enviado por

    Ali Malik
    Southwest Airlines reduced its aircraft turnaround time by 50% compared to the industry average, which significantly lowered its landing fees and other rental costs. By turning aircraft around faster, Southwest spent less time at airports and paid lower landing fees as a result. This 50% reduction in turnaround time saved Southwest approximately $70 million in landing fees and rentals compared to the industry average, representing a nearly 48% reduction in operating expenses for those fees.

    Direitos autorais:

    Attribution Non-Commercial (BY-NC)
    Baixe no formato DOC, PDF, TXT ou leia online no Scribd
    Sinalizar o conteúdo como inadequado
    de 2

    Rapid Rewards at Southwest Airlines

    Q: How reduction in turnaround time is affecting cost of Southwest airlines? Ans: Turnaround time is the time involves in the process of entering a port, unloading and reloading aircraft and leaving the port. As the turnaround time increases, the rent of the airport increases. So the landing fees and other rentals in the financial statement is affected by the 50% reduction in the turnaround time of Southwest Airlines from industry average. Company Name Alaska Airlines American West Southwest US Airways Delta American Airlines United Airlines Landing Fees and other rentals ($ in millions) 23 35 77 119 196 320 264

    Industry average of Landing fees and other rentals = $147.71 million Landing fees for Southwest = $ 77 million Southwest Landing fees as % of Industry Average = 77/147.71* 100% = 52% So Southwest is saving almost 48% of operating expenses by reducing its turnaround times by 50% from industry average. Saving of Southwest = 147.71 77 = $ 70.71 million

    So Southwest is saving approximately $70 million in 2001 from the industry by making its operations speedy and efficient.

    Usman Asif (08108184)

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