Good Example Of Case Study On Herb Kelleher's Southwest Airlines
Rollin King and his friend John Parker want to begin an airline service with low fare. This would enable persons with low income to fly between different cities of Southwest. Kelleher, who takes no interest at the beginning of the conversation soon, becomes very enthusiastic and becomes one of the co-founders of the Southwest Airlines.
Besides, other difficulties, the airline wins the legal battle and becomes operational on June 18, 1971.
Despite having very limited experience in the executive field, Kelleher becomes chairman of the company in 1982. It is fortunate for the air line that Kelleher becomes the CEO because his endeavor makes the low-fare airline into the third largest airline in the world. Further, Kelleher knows the importance of the balance sheet and, therefore, he keeps the strongest balance sheet which is meticulously organized.
How Kelleher turns a low-fare airline into one of the largest airlines in the sense of passenger carrying across the world is because of his belief that “manages in good time in order to do well in bad times” (Hulu.com, 2011). In addition, Kelleher’s innovative attitude also makes the airline very successful. For instance, Kelleher decides to increase the number of the planes when the passengers’ belief increases in the airline instead of increasing the fare.
Kelleher encourages the Southwest employees to submit different ideas for the success of the airline, and if one submits any idea, the CEO answers back within a week.
The three basic principles Kelleher adopts are the lowest costs in the industry that can’t hurt, the best customer services and the interest in the intangible things, a spiritual infusions, because the tangible things can be attained or bought by the other competitor airlines but the intangible spirit cannot be bought, says Kelleher.
Hulu.com. (2011, June 5). Kelleher, Herb. Retrieved January 21, 2015, from Hulu.com: http://www.hulu.com/watch/286093
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