Simplify: How the Best Businesses in the World Succeed

by Richard Koch

He price-simplified by totally redesigning the product. After declaring, “I can teach you the secret to running this airline in thirty seconds. This is it: We are THE low-fare airline,” he added, “Once you understand that fact, you can make any decision about this company’s future as well as I can.”3 Kelleher was being modest. He simplified Southwest’s product in several crucial ways, including: only point-to-point routes; one class of travel; no free refreshments or lounges; a fleet consisting solely of Boeing 737s, simplifying maintenance, scheduling, and training; ten-minute turnaround at the gate; utilize smaller, secondary airports, which are cheaper and faster than the main hub airports; and sell direct to customers. The system worked because low prices meant the planes were usually full and costs were pared to the bone.