Herb Kelleher became the face of one of Texas’s most popular airlines by the 1980s. In an industry that appeared that struggled with many bankruptcies in that decade, he helped build Southwest Airlines into one of the most successful and profitable in the country.
He was born in Camden, New Jersey, in March 1931. After graduating high school in 1953, he went on to earn a bachelors degree at Wesleyan University in Connecticut. While attending college, he happened to meet college student Joanne Negley, a San Antonio native. The two hit it off and were soon married in 1956, a marriage that produced four children. Kelleher earned a law degree at New York University. He returned to New Jersey and briefly served as a clerk to the New Jersey Supreme Court. Soon, his wife convinced him to move to Texas, a move Kelleher for years said was the smartest decision of his life.
Kelleher had settled into a life of a prosperous attorney by early 1967 when he met with one of his clients, Texas businessman Rollin King, and the two discussed the idea of a low-cost airline that would connect the three-largest cities in the state: Dallas, Houston, and San Antonio. By operating strictly within Texas, it would avoid many of the federal regulations on airline flights, routes, and pricing. In March, the two incorporated their venture as Air Southwest and went through the process of securing funding, planes, and licensing. Soon, three other airlines challenged the fledgling company in court, arguing that it upset the delicate balance among airlines created by federal regulations. One by one, the legal challenged fell, and the rechristened Southwest Airlines was ready to go.
After almost four years locked up in court, Kelleher managed to win approval for Southwest to begin flying in June 1971. He later said that when he saw the first Southwest jet, he ran up and kissed it. Southwest boasted $20 tickets (about $154 in modern dollars), which were almost half the cost of their competition. The airline used the Boeing 737 exclusively, helping save on maintenance costs.
By 1978, the airline was expanding rapidly and Kelleher rose temporarily to CEO of the corporation, a move that was made permanent by 1981. Kelleher’s quirky humor and good business sense helped propel the airline to new heights. He promoted a light-hearted approach to the corporate environment that included eye-catching and humorous ads while emphasizing customer service. “You treat your people well, and they’ll treat others well,” he once said. “You have to treat your employees like customers.” His gift for humorous promotion made him synonymous with the airline, and it became an attitude that filled the entire company.
Southwest prided itself on being a no-frills airline. Instead of assigned seats and different classes of seating, it was entirely economy class. The airline became famous for offering food no more extravagant than a bag of peanuts while the stewardesses would often play trivia games with the passengers mid-flight.
The airline continued to grow in profitability and popularity with the flying public. As a result, he was inducted into the Texas Business Hall of Fame in 1988.
In 1992, a trademark dispute threatened to erupt into a major legal headache for Southwest. The airline had taken to using the motto “Just Plane Smart” in its advertisements. However, Stevens Aviation, a South Carolina airplane maintenance firm, took exception because it was too close to its own trademarked motto “Plane Smart.” The two agreed to settle the matter with a good-natured arm wrestling match between the two CEOs. While the date of the match approached, Kelleher jokingly posed at a gym prepping for the match by lifting two bottles of whiskey with a cigarette dangling out of his mouth. Stevens CEO Kurt Herwald beat Kelleher in the highly publicized match, which proved to be a public relations bonanza for both. Kelleher made a donation to charity, and Herwald decided he would share the trademark with Southwest.
Nearing 70 in March 2001, Kelleher stepped down as CEO of the company. He continued to serve as chairman of the board of directors until his retirement in 2008. The same year, he was inducted into the National Aviation Hall of Fame.
Kelleher died in January 2019 at age 87. Today, Southwest has more than 800 aircraft and employs more than 74,000 people, making it one of the largest airlines in the country. What started as a small statewide airline now has more than 100 destinations and earns more than $23 billion each year.
