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Sir:
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Ash
If I wanted to decrease operating cost in a business... how do I do that?
I have a homework assignment for southwest airlines to increase operating cost by 8% in three years.... any suggestions??
I would ask that 14% of the passengers ride the train.
Mr. Tambourine Man
You question is confusing, do you want to increase or decrease?
Nick R
Cut down on the size of the fleet?
lnz423
Fire a lot of people and make the planes out of plastic.
Dancing Man
Assuming you mean you want to figure out how Southwest could decrease operating expenses, you'll need to learn what their operating expenses are. Fuel is a big one. They could make capital expenditures (these aren't operating expenses) for the most fuel efficient jets. Personnel is another. They could provide people a discount to get their boarding passes online and maybe need fewer people at the airports. They could offer no free snacks and drinks on flights shorter than an hour (who can't wait an hour anyway?). Get an annual report from here:
http://www.southwest.com/investor_relations/annual_reports.html
and read about the expenses they have and then think of what you could do if you owned the company and the operating expenses cost YOU money!