Speeches and Presentations from Southwest Leaders
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Gary Kelly |
Change is inevitable in today’s fast-paced business world. To be successful, companies must be able to adapt and overcome obstacles. But sometimes, a company’s core principles—the cornerstones of its business—do not change.
Few people know about how change affects a business better than airline industry executives. Gary Kelly, Southwest Airlines’ chief executive officer, recently spoke about how Southwest has changed some aspects of its business model and kept other parts the same during the Company’s 35-year history.
“In 1971, surveys showed that only 15 percent of Americans had experienced air travel,” Kelly said. “But that same year, Southwest Airlines took its first flight, launching a revolution in the airline industry that would make air travel a reality for everyone—not just a luxury for a few.”
The Company that started as a small, Texas airline with just three airplanes and 200 Employees has grown into the largest domestic carrier in the country (in terms of passengers boarded). Today, Southwest has more than 450 planes and about 32,000 Employees in 62 cities across the country.
Kelly told his audience—a group of about 225 airport marketing and communication professionals from across North America—about some of the changes Southwest has made in the last 35 years that have helped the Company become so successful.
“Our flight attendants no longer wear our signature orange hot pants and gogo boots—though I think some of our Customers would like to bring them back,” he joked.
Some important changes Southwest has implemented to improve Customers’ experience include switching from plastic boarding cards to paper boarding passes, and replacing cloth seats with a new saddle tan and blue all-leather interior. The Company has also began service to new cities, installed self-serve kiosks at all 62 airports it serves and started its first code share agreement with ATA Airlines.
But many things have not changed in the past 35 years. First, Southwest still has top-caliber Employees. Kelly praised Southwest’s People for giving their all to help the Company be the best in the industry.
“We still have the best Employees in the business,” he said. “Our People are truly what set us apart from the competition.”
Southwest still maintains the top Customer satisfaction ranking in the airline industry. Southwest Airlines receives fewer Customer complaints than any other airline.
Kelly said the Company’s business philosophy also remains the same.
“Southwest Airlines is still the nation’s low fare leader, and we maintain that position because we still have the lowest costs in the industry,” he said. “Another thing that we haven’t changed is that, unlike most carriers, Southwest Airlines is still profitable.”
Kelly closed by ensuring the audience that Southwest Airlines will continue to rely on the practices that have made the Company successful for 35 years.
“All airlines, including Southwest, face significant challenges,” Kelly said. “But at Southwest Airlines, we have a model that works—and that is something we have no intention of changing. Our People stand ready and waiting to face whatever challenges come our way.”
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