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Publisher's Summary

People matter most, we all know that. But most companies would rather slash costs, cut headcount, replace well-paid employees with lower-paid employees or outsourced workers, and reduce customer service. In the wake of 9/11, Southwest Airlines was faced with a disastrous situation that threatened to ruin not only their business but the entire airline industry. In response, Southwest Airlines made three pivotal decisions: no layoffs, no pay cuts, and no-hassle refunds for any customer wanting them. The result: Southwest remained profitable, it was the only major airline to protect the jobs of all its employees, and Southwest's market cap soon exceeded all its major competitors combined.

©2008 James Parker (P)2014 American Management Association International

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Great company

honest recollection of being royal to staff works.

important message to shareholders and employers that paying a proper wage and not taking from the vulnerable employee is the right way for long term profitability