Southwest Airlines: An Industry Leader

Company Overview

Southwest Airlines began operations in 1971, with the company's initial service taking place between Dallas, Texas, Houston, Texas, and San Antonio, Texas (Southwest Airlines, 2006). Rollin King and Herb Kelleher started the company with a simple mission focused on being different than other airlines; their chief focus was to provide on time flights at a low cost, along with a bit of fun (Southwest Airlines). As Welch (2005) argued, Southwest Airlines was the world's richest and most profitable airline, illustrating the success the company enjoyed as a result of a simple, yet practical strategy. Hill & Jones (2004) explained that an emergent strategy is the result of acting on an intended strategy (p.20). Kelleher and King set their strategy for Southwest Airlines based on low cost, no frills flying from the company's initial launch in 1971. Southwest Airlines explained that 1973 was its first profitable year of operations, a monumental achievement being that it had only been operating for two years (Southwest Airlines) As Southwest Airlines explained, the company experienced fast growth, flying its one millionth passenger a mere three years after launching! By 1977, the company was listed on the New York Stock Exchange, with a ticker that signified the company's commitment to its customers, LUV (Southwest Airlines). With a clearly defined mission oriented towards pleasing customers through low prices and a fun environment while flying, Southwest set the stage for its next level of success.