HERB KELLEHER AND SOUTHWEST AIRLINES
Flying on Southwest Airlines is not the most comfortable way to go. Usually, the planes are jammed full of vacationers and families including children, as well as business travelers. Seats are crammed together. There is no advance seat reservation system. The crowds at the departure gates are usually enormous. Yet, somehow, through it all, Southwest is tremendously successful. In TIME Magazine's issue of May 1, 2000, Southwest continues to be rated No. 1 in on-time arrivals and departures and in overall quality ratings. How does it do better than the large, established airlines? The answer is that its principal strength, all statistics aside, is its President, founder, CEO, and frequent traveler, Herb Kelleher. Kelleher's personality IS Southwest Airlines.
It is the humor in the ads, the dedication to on-time arrivals and departures and proper turn-around times. It is the choice of new destinations that are overlooked or under-served by the so-called "major airlines", and it most certainly is the employee loyalty and dedication that turns no-frills into as close to zero-defects as possible. But, there is more to his leadership, and the success of Southwest than just low fares. "Economic history shows that an airline based solely on lower airfares does not workàCustomer service is the only strategic marketing tool a carrier can use to pull passengers from an established airline" (Donnelly, 2000 53).
Southwest Airlines was formed in 1966 as a short-haul airline servicing the "triangle" of Houston, Dallas, and San Antonio, with low pricing made possible since it was an intra-state carrier, avoiding certain Federal Regulations. Its customer base, which has continued to the present day, consisted of time-oriented business travelers and price-sensitive leisure travelers. Herb Kelleher proudly explains his company's growth: "We started back in 1971 with three planes serving three Te...