Heard and Overheard from Southwest Airlines' Leaders
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When Southwest Airlines CEO Gary Kelly stepped up the podium to address an audience of Houston’s most successful and influential business leaders, he admitted to having a few nerves. The nerves, however, weren’t due to this being his first time to make a formal public speech since taking on his new role as CEO for Southwest Airlines. He admitted he was a bit anxious about the fact that it was only two days until the company’s big Halloween celebration and his costume wasn’t ready yet.
That comment proved to everyone in the room that Gary was clearly cut from the Southwest Airlines mold where wacky rituals and Elvis Presley-clad leaders are commonplace and somewhat expected.
Despite the humorous tone, Gary had a serious business message to deliver about Southwest’s past struggles and future challenges.
“Southwest’s future wasn’t always certain,” Gary stated. “There’s only one reason why we are here today and that is the Warrior Spirit of our Employees.”
“Today is the dawn of a new era and it is very uncertain as to how it will evolve and change. The major airlines are in financial crisis and the industry is plagued with layoffs and bankruptcy. There are no guarantees anymore.”
“But Southwest has something that no other airline has, and that is the strength and dedication of its Employees.”
Gary took the audience on a quick trip back through time when competition was non-existent and air travel was reserved for the privileged.
“Southwest Airlines was created to meet a need that was previously being ignored – shorthaul, affordable air travel. The idea was to operate inside Texas and to compete, not against the industry airline giants, but with the car.”
The idea took off and the freedom to fly was born, but, as Gary explained, it wasn’t a smooth ride.
“In the beginning, times were tough and Herb had to sell one of the four airplanes in order to survive,” he said. “The Employees were faced with making three airplanes do the work of four and what resulted was the famous 10-minute turn.”
The Warrior Spirit emerged and Southwest continued to reach milestone after milestone, weathering the economic storm of the mid-1980s and the unthinkable crisis of September 11th, all the while remaining profitable and holding on to the one asset that mattered most – its Employees.
“Remarkable people built a remarkable company,” Gary concluded. “Despite the changing competitive landscape and additional cost pressures the industry is currently faced with, Southwest will continue to grow and be successful thanks to the strength, dedication, and spirit of its Warriors.”
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