Southwest Airlines was founded by Rollin King and Herb Kelleher in 1967. The airline was originally incorporated to serve three major cities in Texas (Dallas, Houston and San Antonio). The idea was to create an airline with low fares, easy scheduling and quality customer service. Some of the dominant airlines at that time initiated a series of litigations against southwest airlines in an attempt to prevent them from launching their first flight. After winning the legal battles, other problems started to ensue e.g. the company needed to strategize on how to maximize profits and at the same time compete with other players within the airline industry. The following are some issues the company faced and the strategies used to tackle it.
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The company became very successful in the industry after a few years and it even expanded to another state and by 1996 the company recorded its 23rd consecutive year of profitability.
In my perspective, I think the company was able to succeed in various dilemma due to the dedication and boldness of their leaders accompanied with their ability to come up with brilliant ideas and strategies to tackle them. For example, while the company was trying to acquire some gates at the midway airport, all hope seemed to be lost but the group managed to find a loophole that allowed them to negotiate with the state. The way the negotiation was handle and the way the southwest team organized the transportation of equipment from other cities to Chicago within a limited timeframe, also shows how coordinated and effective they are. At the end of the article the Southwest CEO Herb Kelleher made known his intentions to expand the company’s branch to Florida after just concluding a deal in Chicago. In my own view, Kelleher is a visionary leader and he is the back bone for the success of the company start from how he fought his way through an expensive legal battle out of his own pocket and how he turned southwest airline from an intrastate airline to interstate. This is the reason why southwest airline is one of the biggest airline in America today.