Southwest Airlines built its business by keeping essential things simple and implementing them consistently. Southwest offers one plane type, one class of service, and a streamlined boarding process. It has a limited set of destinations, often at secondary, less congested airports. If you want to fly to Chicago, you’ll find more flights to Midway than O’Hare. Jetting to New York? On Southwest, you’ll likely land in LaGuardia, not JFK. At each airport, you won’t be spending any time in Southwest Airlines’ airport lounge. Southwest doesn’t offer one.

Contrast this with major airlines like United, Delta, or American, which offer more amenities. Do some flyers value full-reclining leather seats, surround sound, four-star meals, and first-class treatment? Sure they do. Southwest just chooses not to target them.

Southwest targets a specific customer and aligns its people-first culture and business operations to deliver a winning experience. Here’s an overview Southwest Airlines’ value proposition example:

Southwest Value Proposition Examples

Let’s dissect Southwest’s five value planks. For many people, air travel is about getting from point A to B safely. These are table stakes needs, but also where Southwest excels through its “Fun, Friendly Flying Experience” plank. Southwest’s industry-leading customer satisfaction and customer loyalty scores, delivered through its people, are clear differentiators.

Southwest’s next benefit plank, low fares/efficient operations, aligns internally with company operations and cost-saving measures. One example: Southwest uses only one plane type, the Boeing 737. Compare this with United, Delta, and American, which may operate ten or more types of aircraft.

Having one plane type results in lower maintenance and operational costs, which are passed on to consumers through lower fares.

The “Transfarency” plank delivers on the customer’s need for no surprises. Competitors charge to check baggage. On Southwest, you can check two bags for free. Competitors charge change fees. Southwest does not. Southwest also offers free live TV and all food is complimentary. This Transfarency plank represents a branded initiative for Southwest and is central to its positioning.

The simple experience plank provides a hassle-free experience. With no first-class section, Southwest streamlines food and beverage service. No assigned seats mean they fill quicker, with shorter plane time at the gate. Grabbing differentiation and efficiency where it can, Southwest resists the path of its competitors who instead squeeze more out of consumers.

The final value plank, convenience, and coverage is delivered through the company’s point-to-point route structure, rather than the traditional hub-and-spoke model. Since secondary airports are less congested, Southwest minimizes ground time and improves performance. This allows for more direct nonstop routes and more frequent, conveniently timed flights.

While Southwest has low fares, it’s often not the cheapest. Still, brand value is what you get for what you pay. By linking and aligning value planks—a motivated team, deep focus on the customer, and efficient operations—Southwest delivers a superior value proposition and financial performance that make it the envy of the industry.