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Texas History Minute: Kelleher combined service and humor to found the popular Southwest Airlines
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Texas History Minute: Kelleher combined service and humor to found the popular Southwest Airlines

Photo of a Southwest Airlines jet taking off. The jet’s landing gear can also be seen. (Texas History Portal)

By Dr. Ken Bridges, Texas History Minute

Herb Kelleher became the face of one of Texas’ most popular airlines in the 1980s. In an industry that struggled with many bankruptcies during that decade, he helped turn Southwest Airlines into one of the most successful and profitable in the country.

He was born in March 1931 in Camden, New Jersey. After graduating from high school in 1953, he earned a bachelor’s degree from Wesleyan University in Connecticut. While there, he met Joanne Negley, a college student from San Antonio.

The two hit it off and married in 1956. They had four children. Kelleher earned a law degree from New York University. He returned to New Jersey and briefly worked as a law clerk in the New Jersey Supreme Court. Soon after, his wife persuaded him to move to Texas. For years, Kelleher called it the wisest decision of his life.

By early 1967, Kelleher had already established himself as a successful lawyer when he met one of his clients, Texas businessman Rollin King, and the two discussed the idea of ​​a low-cost airline that would connect the state’s three largest cities: Dallas, Houston and San Antonio.

By operating exclusively in Texas, it was able to bypass many of the federal regulations governing flights, routes and prices. In March, the pair incorporated their company as Air Southwest and went through the process of obtaining financing, aircraft and licenses. Soon after, three other airlines sued the fledgling company, arguing that it was upsetting the delicate balance between airlines created by federal regulations. One by one, the lawsuits were dismissed and the renamed Southwest Airlines was ready to take off.

After nearly four years in court, Kelleher was able to get Southwest approved to begin flying in June 1971. He later said that when he saw Southwest’s first jet, he ran up and kissed it. Southwest advertised tickets for $20 (about $154 today), almost half the price of its competitors. The airline used the Boeing 737 exclusively, saving on maintenance costs.

In 1978, the airline was expanding rapidly and Kelleher temporarily became the company’s CEO, a position that became permanent in 1981. Kelleher’s idiosyncratic humor and good business sense helped the airline reach new heights. He promoted a light-hearted approach to the corporate environment that included eye-catching and humorous advertisements while emphasizing customer service.

“If you treat your people well, they will treat others well,” he once said. “You must treat your employees like customers.”

His talent for humorous advertising made him synonymous with the airline and this attitude shaped the entire company.

Southwest prided itself on being a no-frills airline. Instead of assigned seats and different seating classes, it only operated economy class. The airline became known for serving food that was no more extravagant than a bag of peanuts, and the flight attendants often played trivia games with passengers during the flight.

The airline became increasingly profitable and popular with passengers, which is why he was inducted into the Texas Business Hall of Fame in 1988.

In 1992, a trademark dispute threatened to become a major legal nuisance for Southwest. The airline had made a habit of using the slogan “Just Plane Smart” in its advertisements. However, Stevens Aviation, an aircraft maintenance company based in South Carolina, took exception to the slogan because it was too similar to its own trademark slogan, “Plane Smart.”

The two agreed to settle the matter with a friendly arm-wrestling contest between the two CEOs. As the date of the contest approached, Kelleher jokingly posed in a gym to prepare for the contest by lifting two whiskey bottles with a cigarette dangling from his mouth. Stevens CEO Kurt Herwald defeated Kelleher in the highly publicized contest, which proved to be a PR bonanza for both. Kelleher donated to charity and Herwald decided to share the brand with Southwest.

In March 2001, when he was nearly 70 years old, Kelleher stepped down as CEO of the company. He remained chairman of the board until his retirement in 2008, the same year he was inducted into the National Aviation Hall of Fame.

Kelleher died in January 2019 at the age of 87. Today, Southwest has more than 800 aircraft and employs more than 74,000 people, making it one of the largest airlines in the country. What began as a small nationwide carrier now serves more than 100 destinations and generates more than $23 billion annually.

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