IntroductionSouthwest Airlines was incorporated in Texas and began customer service on June 18, 1971 with three Boeing 737 airplanes serving three Texas cities: Houston, Dallas, and San Antonio. Today, Southwest operates 537 Boeing 737 aircraft between 68 cities. Southwest topped the monthly domestic passenger rankings originating for the first time in May 2003. The year-end result for 2009 marked Southwest's 37th consecutive year of profitability. Southwest became a major airline in 1989 when it crossed the $1 billion revenue mark. Southwest is the most successful low-fare, high-frequency point-to-point airline in the United States. Southwest operates more than 3,200 flights per day from coast to coast, making it the largest domestic U.S.-based airline as of September 30, 2009 (Southwest Airlines Fact Sheet, 2010. Southwest's success may be due in large part to its unusual focus on creating value for employees. “LUV” and “FUN,” the pillars of Southwest's employee relations approach, represent concern and respect for individuals, as well as the conscious creation of an environment that encourages all employees to have fun at work. Southwest's low turnover and high productivity suggest that the airline creates significant value for employees (Hallowell, 1996). to convert some of the value created for employees into value for customers and shareholders. Southwest provides an example of a competitive advantage created through people (Hallowell, 1996). Creating and maintaining Southwest's competitive advantage can be viewed as an honorable cycle. Describing this cycle requires theories of incentives, organizational capabilities... middle of paper ......uthwest Passengers Let off Some Steam, 2007). Every company must remember that customer satisfaction is the number one element in ensuring the current and future success of the company, and when consumers feel they are no longer valued as an asset they will run to the company's competitors even if it means spend a little more money to get that wonderful “valued customer” feeling (Welch, 2005).Southwest Airlines should have their own senior vice president of customer relations to make sure every negative complaint is answered and to explain why for which this procedure has been implemented, they should also reiterate the company's commitment to customers and assure them that they are very important. Southwest may even offer some of these customers free boarding passes just to show their appreciation for being a Southwest Airlines customer (Welch, 2005).