Herbert David "Herb" Kelleher ​(born March 12, 1931) is the co-founder, Chairman Emeritus and

former CEO of Southwest Airlines (based in the United States).

Early life and career

Kelleher was born in Camden, New Jersey on March 12, 1931 and raised in Audubon, New Jersey,
where he graduated from Haddon Heights High School. He has a bachelor's degree from Wesleyan
University where he was an Olin Scholar and where his major was English and his minor Philosophy, and
a Juris Doctor from New York University where he was a Root-Tilden Scholar. At Wesleyan he was a
member of Delta Kappa Epsilon Fraternity. He is married to the former Joan Negley and they have four
children.

Career
The Kellehers moved to Texas intending to start a law firm or a business. Kelleher and one of his law
clients, Texas businessman Rollin King, created the concept with banker John Parker that later became
Southwest Airlines on a cocktail napkin in a San Antonio restaurant. From its birth in 1971 after
overcoming four years worth of legal challenges from competitors who tried to keep it grounded
Southwest succeeded by a strategy of offering low fares to its passengers, eliminating unnecessary
services, and avoiding the "hub-and-spoke" scheduling system used by other airlines in favor of building
traffic in such secondary airports as Chicago-Midway (instead of Chicago-O'Hare) and Orange County.
During his tenure as CEO of Southwest, Kelleher's colorful personality created a corporate culture which
made Southwest employees well known for taking themselves lightly often singing in-flight
announcements to the tune of popular theme songs but their jobs seriously. How different the company
culture is can be seen in an arm-wrestling event in March 1992. Shortly after Southwest started using the
"Just Plane Smart" motto, Stevens Aviation, who had been using "Plane Smart" for their motto,
threatened a trademark lawsuit, which was resolved between Herb Kelleher and Stevens Aviation CEO
Kurt Herwald in an arm-wrestling match, now known as "Malice in Dallas". Southwest is consistently
named among the top five Most Admired Corporations in America in Fortune magazine's annual poll.
Fortune has also called him perhaps the best CEO in America. Kelleher was inducted into the Junior
Achievement U.S. Business Hall of Fame in 2004. On July 19, 2007, Southwest Airlines announced that
Kelleher would step down from the role of Chairman and resign from the board of directors in May 2008,
though he would remain a full-time employee for another five years.Kelleher ultimately stepped down as
chairman on May 21, 2008. Immediately following, Southwest Airlines named current CEO, Gary C. Kelly
the new Chairman of the Board of Directors. In July 2010 Kelleher was appointed Chair of the Federal
Reserve Bank of Dallas board of directors for 2011. Kelleher's term expired in 2013. Previously, he had
served as Deputy Chair.

Southwest Airlines Co. is a major United States airline headquartered in Dallas, Texas, and is the
world’s largest low-cost carrier.
The airline was established in 1967 by Herb Kelleher as Air Southwest Co. and adopted its current name,
Southwest Airlines Co., in 1971, when it began operating as an intrastate airline wholly within the state of
Texas, first flying between Dallas and San Antonio. The airline has more than 58,000 employees as of
September 2018 and operates more than 4,000 departures a day during peak travel season. Southwest
Airlines has only operated Boeing 737 jetliner models, except for a period from 1979 to 1987 when it
leased and operated several Boeing 727-200s from Braniff International Airways. Southwest is the largest
operator of the Boeing 737 worldwide, with over 740 in service, each averaging six flights per day. As of
November 2018, Southwest carries the most domestic passengers of any United States airline. The
airline has scheduled services to 99 destinations in the United States and ten additional countries.
Service to four destinations in Hawaii is coming in late 2018 or early 2019 subject to FAA approval, with
routes to be decided on and announced in the near future.

History
In 1966 Southwest Airlines was founded by Herbert Kelleher and Rollin King, and in 1967 it was
incorporated as Air Southwest Co. It was not until 1971 that the airline began scheduled flights from
Dallas Love Field. The same year the organization adopted the name Southwest Airlines Co. The
expansion of flights started in 1975, to cities throughout Texas, and in 1979 Southwest began flying to
neighboring states. Service to the East and the Southeast started in the 1990s

Passenger experience
Southwest Airlines uses the motto "Low fares. Nothing to hide. That's Transfarency." This motto refers to
their avoidance of burdening passengers with hidden or additional fees. While most U.S. airlines now
charge passengers for checked luggage, Southwest continues to permit 2 free checked bags per
passenger, making the airline a favorite of many travelers. Regarding last-minute itinerary changes,
Southwest also does not charge any change fees; passengers are permitted to change their flight as late
as two hours prior to their flights, and only pay the difference if their new flight is more expensive than the
original flight (or receive a credit if the new flight is less expensive than the original flight). In the event of a
cancellation, passengers are refunded a travel credit in the amount spent on their ticket, and the credit
may be used toward any other Southwest Airlines or Southwest Vacations purchase within a year of the
original ticket purchase. Southwest offers free in-flight non-alcoholic beverages and offers alcoholic
beverages for sale for $6-7/beverage, with Rapid Rewards members eligible to receive drinks vouchers
with their tickets. Free alcoholic drinks are offered on popular holidays such as Valentine's Day and
Halloween, provided the passenger is at least 21. Southwest has complimentary pretzels on all flights,
and most flights have free Nabisco snacks. Southwest is known for colorful boarding announcements and
crews that burst out in song, which is quite popular among passengers. Southwest maintains excellent
customer satisfaction ratings; according to the Department of Transportation (DOT) Southwest ranks
number one (lowest number of complaints) of all U.S. airlines for customer complaints. Southwest Airlines
has consistently received the fewest ratio of complaints per passengers boarded of all major U.S. carriers
that have been reporting statistics to the DOT since 1987, which is when the DOT began tracking
customer satisfaction statistics and publishing its Air Travel Consumer Report. Prior to 2007, Southwest
boarded passengers by grouping the passengers into three groups, labeled A, B and C. Passengers
would line up at their specified letter and board. In 2007, Southwest modified their boarding procedure by
introducing a number. Each passenger receives a letter (A, B or C) and a number 1 through 60.
Passengers line up in numerical order within each letter group and choose any open seat on the aircraft
as part of Southwest's open seating policy. According to a 2012 study by Mythbusters, this is the fastest
method currently in use for non-first class passengers to board a plane; on average, it is 10 minutes faster
than the standard method used by most airlines of boarding from the back frontward.
In-flight entertainment
All Southwest Airlines aircraft are equipped with Wi-Fi, free streaming live television, and movies on
demand for a fee. After completing a testing phase that began in February 2009, Southwest announced
on August 21, 2009 that it would begin rolling out in-flight Wi-Fi Internet connectivity via Global Eagle
Entertainment's satellite-broadband based product. Southwest began adding Wi-Fi to its aircraft in the
first quarter of 2010. The airline began testing streaming live television in the summer of 2012 and video
on demand in January 2013. As of November 1, 2018, live in-flight TV, movies, messaging (iMessage and
WhatsApp) and real-time flight tracking information via Wi-Fi are available for free to all passengers, with
full Internet access available at a fee for regular passengers and free to A-List Preferred Rapid Rewards
members.

Evolve interior
On January 17, 2012, Southwest introduced a plan to retrofit its fleet with a new interior. Improvements
include a modern cabin design, lighter and more comfortable seats made of eco-friendly products,
increased under-seat space, new netted seat back pockets to provide more knee room, a new fixed-wing
headrest and improved ergonomics. All Boeing 737-700s and 115 -800s have the Evolve Interior. Though
not originally planned, because of space saved, Southwest was able to fit an extra row of seats on its
planes. All Boeing 737-800s have the Boeing Sky Interior, which features sculpted sidewalls and
redesigned window housings, along with increased headroom and LED mood lighting.

Heart interior
On June 20, 2016, Southwest introduced its newest interior, called the Heart Interior. It includes the
widest seat to fit a Boeing 737 that provides additional space for passengers and also includes a new
galley. The seat is being delivered on all new 737-800s and 737 MAX aircraft. All current evolve equipped
737s will be retrofitted with new bulkheads and bold blue seat cushions to match the look of the heart
interior.

Rapid Rewards
Southwest first began to offer a frequent-flyer program on June 20, 1987, calling it The Company Club.
Unlike many competitors' programs that were based on miles flown, The Company Club credited for trips
flown regardless of distance. Southwest Airlines renamed its frequent flyer program Rapid Rewards on
April 25, 1996.
The original Rapid Rewards program offered one credit per one-way flight from an origin to a destination
including any stops or connections on Southwest Airlines. When 16 credits were accumulated in a
24-month period, Southwest awarded one free round-trip ticket that was valid for 12 months.
On March 1, 2011, Rapid Rewards changed to a points system based on ticket cost. Members earn and
redeem points based on a three-tier fare scale multiplier and the cost of the ticket. Changes also included
no blackout dates, seat restrictions or expiring credits. It also adds more options to use points. Tony
Jannus Award for outstanding leadership in the commercial aviation industry, 1993. International Air &
Space Hall of Fame inductee at the San Diego Air & Space Museum, 2002. Bower Award for Business
Leadership, 2003. L. Welch Pogue Award for Lifetime Achievement in Aviation, 2005. Charles Lindbergh
Award for Excellence in aviation, 2006. Smithsonian Air and Space Museum, Washington. Inducted into
the Texas Business Hall of Fame, 1988.

Employment
As of September 30, 2018, Southwest Airlines has 58,559 active full time equivalent employees. Gary C.
Kelly is Chairman and CEO of Southwest Airlines. Kelly replaced former CEO Jim Parker on July 15,
2004 and assumed the title of "President" on July 15, 2008, replacing former President Colleen Barrett. In
July 2008, Herb Kelleher resigned his position as Chairman. Colleen Barrett left her post on the Board of
Directors and as Corporate Secretary in May 2008 and as President in July 2008. Kelleher was President
and CEO of Southwest from September 1981-June 2001.
On January 10, 2017, Southwest announced changes to the Company's executive Leadership ranks with
Thomas M. Nealon named as President and Michael G. Van de Ven named as the airline's Chief
Operating Officer.
Southwest employees are generally members of a union. The Southwest Airline Pilots' Association, a
union not affiliated with the Air Line Pilots Association, represents the airline's pilots. The Aircraft
Maintenance Technicians are represented by the Aircraft Mechanics Fraternal Association (AMFA).
Customer Service Agents and Reservation Agents are represented by the International Association of
Machinists and Aerospace Workers Union (IAM). Flight Dispatchers, Flight Attendants, Ramp agents and
Operations agents are represented by the Transport Workers Union (TWU).

Impact on carriers
Southwest has been a major inspiration to other low-cost carriers, and its business model has been
repeated many times around the world. The competitive strategy combines high level of employee and
aircraft productivity with low unit costs by reducing aircraft turnaround time particularly at the gate.
Europe's EasyJet and Ryanair are two of the best known airlines to follow Southwest's business strategy
in that continent. Other airlines with a business model based on Southwest's system include Canada's
WestJet, Malaysia's AirAsia (the first and biggest LCC in Asia), India's IndiGo, Australia's Jetstar, a
subsidiary of Qantas (although Jetstar now operates three aircraft types), Philippines's Cebu Pacific,
Thailand's Nok Air, Mexico's Volaris, Indonesia's Lion Air and Turkey's Pegasus Airlines. Although
Southwest has been a major inspiration to many other airlines, including Ryanair, AirAsia, Lion Air and
Jetstar, the management strategies, for example, of Ryanair, AirAsia, Lion Air and Jetstar differ
significantly from those of Southwest. All these different management strategies can be seen as means of
differentiation from other competitors in order to gain competitive advantages.

Advertising
The company has always employed humor in its advertising. Former slogans include "Love Is Still Our
Field," "Just Plane Smart," "The Somebody Else Up There Who Loves You," "You're Now Free To Move
About The Country," "THE Low Fare Airline," "Grab your bag, It's On!" and "Welcome Aboard." The
airline's current slogan is "Low fares. Nothing to hide. That's TransFarency!" In March 1992, shortly after
Southwest started using the "Just Plane Smart" motto, Stevens Aviation, which had been using "Plane
Smart" for its motto, advised Southwest that it was infringing on its trademark.
Instead of a lawsuit, the CEOs for both companies staged an arm wrestling match. Held at the
now-demolished Dallas Sportatorium (the famed wrestling facility) and set for two out of three rounds, the
loser of each round was to pay $5,000 to the charity of his choice, with the winner gaining the use of the
trademarked phrase. A promotional video was created showing the CEOs "training" for the bout (with
CEO Herb Kelleher being helped up during a sit up where a cigarette and glass of whiskey (Wild Turkey
101) was waiting and distributed among the employees and also as a video press release along with the
video of the match itself. Herb Kelleher lost the match for Southwest, with Stevens Aviation winning the
rights to the phrase. Kurt Herwald, CEO of Stevens Aviation, immediately granted the use of "Just Plane
Smart" to Southwest Airlines. The net result was both companies having use of the trademark, $15,000
going to charity, and good publicity for both companies.

Which winning market practice it applies?

In fact Southwest Airlines got all the 10 winning marketing practices because according to my research
they reached all the qualities needed. ​1.) ​First is win the higher quality​, and for that t​he airline was
considered among the ten safest in the world in 2012. ​2.) ​Second is win the better service,​ Southwest
offers free in-flight non-alcoholic beverages and offers alcoholic beverages for sale for $6-7/beverage,
with Rapid Rewards members eligible to receive drinks vouchers with their tickets. Free alcoholic drinks
are offered on popular holidays such as ​Valentine's Day and Halloween, provided the passenger is at
least 21. Southwest has complimentary pretzels on all flights, and most flights have free ​Nabisco snacks.
Southwest is known for colorful boarding announcements and crews that burst out in song, which is quite
popular among passengers. ​Southwest maintains excellent customer satisfaction ratings; according to the
Department of Transportation (DOT) Southwest ranks number one (lowest number of complaints) of all
U.S. airlines for customer complaints. Southwest Airlines has consistently received the fewest ratio of
complaints per passengers boarded of all major U.S. carriers that have been reporting statistics to the
DOT since 1987, which is when the DOT began tracking customer satisfaction statistics and publishing its
Air Travel Consumer Report. Prior to 2007, Southwest boarded passengers by grouping the passengers
into three groups, labeled A, B and C. Passengers would line up at their specified letter and board. ​In
2007, Southwest modified their boarding procedure by introducing a number. Each passenger receives a
letter (A, B or C) and a number 1 through 60. Passengers line up in numerical order within each letter
group and choose any open seat on the aircraft as part of Southwest's open seating policy. ​According to a
2012 study by ​Mythbusters​, this is the fastest method currently in use for non-first class passengers to
board a plane; on average, it is 10 minutes faster than the standard method used by most airlines of
boarding from the back frontward. ​3.) ​Third is win the lower prices​, ​Southwest Airlines uses the motto
"Low fares. Nothing to hide. That's Transfarency." This motto refers to their avoidance of burdening
passengers with hidden or additional fees. While most U.S. airlines now charge passengers for checked
luggage, Southwest continues to permit 2 free checked bags per passenger, making the airline a favorite
of many travelers. Regarding last-minute itinerary changes, Southwest also does not charge any change
fees; passengers are permitted to change their flight as late as two hours prior to their flights, and only
pay the difference if their new flight is more expensive than the original flight (or receive a credit if the new
flight is less expensive than the original flight). In the event of a cancellation, passengers are refunded a
travel credit in the amount spent on their ticket, and the credit may be used toward any other Southwest
Airlines or Southwest Vacations purchase within a year of the original ticket purchase. ​4.) ​Fourth is win
the higher market show​, Southwest has been a major inspiration to other low-cost carriers, and its
business model has been repeated many times around the world. The competitive strategy combines
high level of employee and aircraft productivity with low unit costs by reducing aircraft turnaround time
particularly at the gate. Europe's ​EasyJet and ​Ryanair are two of the best known airlines to follow
Southwest's business strategy in that continent. Other airlines with a business model based on
Southwest's system include Canada's ​WestJet​, Malaysia's ​AirAsia (the first and biggest LCC in Asia),
India's ​IndiGo​, Australia's ​Jetstar​, a subsidiary of ​Qantas (although Jetstar now operates three aircraft
types), ​Philippines​'s ​Cebu Pacific​, Thailand's ​Nok Air​, Mexico's ​Volaris​, Indonesia's ​Lion Air and ​Turkey​'s
Pegasus Airlines​. Although Southwest has been a major inspiration to many other airlines, including
Ryanair, AirAsia, Lion Air and Jetstar, the management strategies, for example, of Ryanair, AirAsia, Lion
Air and Jetstar differ significantly from those of Southwest. All these different management strategies can
be seen as means of differentiation from other competitors in order to gain competitive advantages. 5.)
Fifth is win the adaptation​, all Southwest Airlines aircraft are equipped with ​Wi-Fi​, free streaming live
television, and movies on demand for a fee because millennials and children nowadays are attached to
technologies and they easily get bored that’s why they came up with the idea. ​6.) ​Sixth is win the
customization​, on January 17, 2012, Southwest introduced a plan to retrofit its fleet with a new interior.
Improvements include a modern cabin design, lighter and more comfortable seats made of eco-friendly
products, increased under-seat space, new netted seat back pockets to provide more knee room, a new
fixed-wing headrest and improved ergonomics. All Boeing 737-700s and 115 -800s have the Evolve
Interior .Though not originally planned, because of space saved, Southwest was able to fit an extra row of
seats on its planes. All Boeing 737-800s have the Boeing Sky Interior, which features sculpted sidewalls
and redesigned window housings, along with increased headroom and LED ​mood lighting​. ​7.) ​Seventh is
win the continuous product improvement,​ on June 20, 2016, Southwest introduced its newest interior,
called the Heart Interior. It includes the widest seat to fit a Boeing 737 that provides additional space for
passengers and also includes a new galley. ​The seat is being delivered on all new 737-800s and 737
MAX aircraft. ​All current evolve equipped 737s will be retrofitted with new bulkheads and bold blue seat
cushions to match the look of the heart interior. 8.) ​Eighth is win the product innovation,​ Southwest
first began to offer a ​frequent-flyer program on June 20, 1987, calling it The Company Club. Unlike many
competitors' programs that were based on miles flown, The Company Club credited for trips flown
regardless of distance. Southwest Airlines renamed its frequent flyer program Rapid Rewards on April 25,
1996. The original Rapid Rewards program offered one credit per one-way flight from an origin to a
destination including any stops or connections on Southwest Airlines. When 16 credits were accumulated
in a 24-month period, Southwest awarded one free round-trip ticket that was valid for 12 months. On
March 1, 2011, Rapid Rewards changed to a points system based on ticket cost. Members earn and
redeem points based on a three-tier fare scale multiplier and the cost of the ticket. Changes also included
no ​blackout dates​, seat restrictions or expiring credits. It also adds more options to use points. ​9.) Ninth
is entering through high growth market​, ​Southwest is now the largest operator of the Boeing 737
worldwide, with over 740 in service, each averaging six flights per day. ​It has a total assets of US$ 25.110
billion (2017) with a revenue of ​US$ 21.171 billion (2017) and a net income of US$ 3.488 billion (2017)
which gained a lot bigger profit than the previous years. ​10.) ​Tenth is exceeding customer
expectations​, ​who would have thought that in an airplane there is a live in-flight TV, movies,
messaging (iMessage and WhatsApp) and real-time flight tracking information via Wi-Fi are available
for free to all passengers, with full Internet access available at a fee for regular passengers and free
to A-List Preferred Rapid Rewards members. Down to the low price, considerations, full of “ For
Free” surprises, innovative, relaxing, and one of the safest airline in the world is the best satisfying
experience.