To build a business career in the airline is a very sensible choice. Anything can go wrong anytime. Well, every business has some of the other risks it takes. But, airline companies need a lot to think through, for example, low fare, high capital investment, high maintenance, etc.
And, speaking of low fare, Southwest Airlines is the world’s largest low-cost carrier. Herb Kelleher established the company in 1967, but the operations finally started in 1971. Initially, the name of the company was Air Southwest Co. On 29th March 1971, Herb and the rest of his team renamed the company to Southwest Airlines Co. with headquarters based on Dallas.
Herb Kelleher
Herb Kelleher served as a lawyer in his early career. Later, he turned out to be one of the billionaires of New Jersey.
Herb was born on 12th March 1931. Born and brought up in New Jersey, Herb completed his schooling from Haddon Heights High School. He went to Wesleyan University and later to New York University and acquired his law degree from there. After graduating, Herb worked at the New Jersey Supreme Court. But, the job was short-lived.
Herb fled to Texas as he had something bigger in mind. He wanted to start a law firm of his own or start a business. Though the idea of the business was little blurry, he started planning with Rollin King and John Parker. Rollin was a Texas businessman and John was a banker.
After talking about many potential business aspects, the trio finally came up with the idea of airlines. There’s a myth that the founders wrote the plan of Southwest Airlines on a cocktail napkin. But, Herb always declined this.
The take-off
The services of Southwest started from 1971 with two routes: from Dallas Love Field to Houston Intercontinental Airport and from Dallas Love Field to San Antonio. Within a year, the company made it to 100 take-offs each week leaving the Saturdays.
Southwest Airlines have taken ideas and inspiration from what made Pacific Southwest Airlines famous and successful. In 1978, the Airline Deregulation Act enacted and Southwest started planning expansion. The company declared that it would soon start its interstate service to New Orleans.
By the 1980s, Southwest started expanding to many new cities and routes which included Oklahoma City, Cleveland, Denver, Nashville, etc. In 1994, Southwest acquired Morris Air and that began services to Pacific Northwest.
Gaining Momentum
In 1985, the company made a huge acquisition for $60.5 million. It acquired Muse Air and renamed it as TranStar Airlines. During the early 1990s, Southwest had only 650 employees working at the headquarters and it grew twice in number by 2006.
Since the internet was gaining popularity at this time, Southwest planned to reach customers through the web. In 1995, the company created its first website where users could view the schedules, maps and about the company. By this time, Southwest became famous all over the world. The main reasons were low price, effectively combating fuel price fluctuation and strategic ways of making huge profits.
The Uniqueness
In 2008, the company started using the Ecopower water pressure washing system. It cleaned the turbine blades which turned out to improve fuel efficiency by 1.9%. In 2008, Southwest acquired some major assets of ATA Airlines for $7.5 million.
Southwest is also known worldwide for the cultural aspect. The employees are very welcoming which makes customers pay for Southwest’s services all the more. Herb, in one of his interviews, said that people from around the world showed interested to know how Southwest hired employees. From the first round to the kind of training the employees to undergo fascinates and challenges every other airline out there.
The Smooth Landing
In 2011, Southwest completed the acquisition of AirTran Airways. This broadened the area of Southwest’s business thus getting international access to Atlanta. Fortune magazine featured Southwest for ten consecutive years and ranked it 3rd among America’s Top Ten most admired corporations.
In May 2012, the company received permission for carrying out international services from William P. Hobby Airport. In 2014, the company decided to rebrand itself and created a new logo. After a couple of years, the company was granted approval for its services to Cuba. This became a great deal for Southwest as USDOT chose it as the sixth ever airline to initiate services in Cuba.
From 100 departures a week the company now commences 4000 departures every single day. According to 2018, the company’s annual revenue summed up to $21.965 billion. Southwest is planning to expand its services to Hilo in 2020.
Annasha Dey is an NIT student, who apart from studying engineering is also a content writer. She has a great interest in photography, writing, reading novels, and travelling as well. She is a foodie who loves socializing and hanging out with her friends. She is also a trained Kathak dancer and a big fashion enthusiast. Dey also loves watching TV series, which includes F.R.I.E.N.D.S. and Big Bang Theory. To be a better writer she prefers to read more