The Story

In the 1960s, the hustle and bustle of the Texas legal scene was a vibrant world where the ambitious and astute Herb Kelleher had started making a name for himself. His reputation as a shrewd yet affable lawyer was growing, but Kelleher yearned for a grander purpose, a chance to create something that would not only challenge his capabilities but also significantly impact the landscape of American commerce. Little did he know, a drink with a friend at a local bar would become the catalyst for a remarkable journey.

One day, he received a call from a friend, Rollin King, a Texas businessman who was looking for legal assistance with his small charter service. They met at a local bar, and over a few drinks, Rollin scribbled on a cocktail napkin a business model he was thinking about: a triangle connecting three cities - Dallas, Houston, and San Antonio. He envisioned a low-cost, high-frequency airline that would offer direct flights between these cities.

Herb looked at the napkin. He was not just a lawyer; he was an entrepreneur at heart. He saw the potential, the disruptive nature of the idea, and a chance to reshape the American airline industry. Excited, he partnered with Rollin and decided to build this dream together.

They named it Southwest Airlines.

From the outset, there were numerous challenges. Established airlines like Braniff and Continental fought against their existence, embroiling them in legal battles that lasted four long years. They questioned Southwest's right to operate, dragging the nascent airline through court after court.

Herb, with his legal background, fought tirelessly. He knew that they were not just fighting for Southwest; they were fighting for the democratization of air travel. He handled the legal battles with a tireless determination that showcased his fierce spirit.

Finally, in 1971, Southwest Airlines began its service with a mere four planes. The airline kept its promise of offering low-cost flights, operating under the philosophy, "If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline."

But even with operation in progress, the struggles didn't end. The oil crisis of the 1970s threatened to sink the budding airline. However, Herb, with his knack for unconventional solutions, came up with a novel idea. Instead of retreating, Southwest offered a bottle of premium liquor to every paying passenger. This brought in enough additional passengers to keep them afloat.

Southwest's culture of positivity and fun mirrored Herb's own personality. The airline became famous for its flight attendants in hot pants, a singing cabin crew, and a CEO who was known to do everything, from handling baggage to serving drinks on the plane.

Under Herb's leadership, Southwest grew from a regional Texas airline to one of the largest and most successful airlines in the United States. It disrupted the industry, introduced the concept of low-cost carriers, and democratized air travel, making it accessible for more people.

The story of Herb Kelleher and Southwest Airlines is more than a tale of starting an airline; it's about tenacity, vision, and a relentless pursuit of democratizing an industry. It's a testament to the spirit of innovation and the power of a simple idea scribbled on a cocktail napkin.

Lessons from Herb

1. Customer Centricity: Kelleher put his customers at the heart of Southwest's business model. His philosophy was simple: make flying affordable, punctual, and enjoyable, and customers will reward you with their loyalty.

2. Employee Engagement: Kelleher believed that happy employees led to happy customers. He prioritized the wellbeing of his employees and fostered a positive and enjoyable work environment. He often said, "Your employees come first. And if you treat your employees right, guess what? Your customers come back, and that makes your shareholders happy."

3. Simplicity in Business Model: Southwest succeeded in part due to its simple business model – point-to-point flights, no frills, and a single type of aircraft to reduce maintenance and training costs. This simplicity allowed for efficiency and cost-savings which were passed onto the customers in the form of lower fares.

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