By Ralph Nader
January 9, 2019
When Herb Kelleher, the joyous, fun-loving Founder and retired CEO of Southwest Airlines soared past permissible flight levels for passenger aircraft on his way to heaven last week, the accolades in the exuberant obituaries were also sky-high.
Listen to former American Airlines CEO Bob Crandall: “He was a man of great imagination. He was a man of diligence. He paid careful attention to the details. And he was a man of integrity. I think we will look back on Herb Kelleher as an example of the kind of people who ought to be our leaders.”
Herb (everyone called him Herb), was much more than a super-successful creator of a low-fare, no-frills, high-pay, unionized, constantly profitable airline (since 1973) that never laid off any workers, with consistently high customer-approval ratings, and the most solid financial stability in a boom-bust, managed industry. In overturning the stagnant, brusque ways of the industry, he challenged his industry, with four Boeing 737s in 1971 flying between Dallas, San Antonio, and Houston, and overcame a cartel-like industry. After beating back numerous lawsuits by other airlines trying to stop his fledgling enterprise – he rewrote the book on management for a large company.
For starters, he put employees, not consumers, first. That seemed not effective to me at first. But then came his explanation. You treat employees well in all ways, occupationally and personally, they’ll treat airline passengers well and safely, which makes the airline prosper for the shareholders. He did all three, having fun along the way. More than a few of his pilots, attendants, and other staff became—as workers/shareholders— millionaires.
Making money was not his first personal priority – making work pleasurable and exciting and giving employees discretion to bring the best from themselves – not playing rigidly by rule books – gave him the most professional gratification.
After a while it probably did not surprise him that his wealth grew and grew to an estimated $2.5 billion.
His way of doing business, motivating people, and relieving their anxieties should invite many diverse living memorials in his memory. It is easy to think of many ways to recognize business practices that could be established in his same joyously productive fashion.
I’ve made no secret that Southwest is my favorite domestic airline. There is no second. When I step from the jet way onto the plane, I invariably say to the flight attendants and pilots – “the best airline in America” often adding that it reflects the pioneering ways of Herb Kelleher.
Once I called him to say that he is such a critical asset to the airline that shareholders should pass a resolution demanding that he stop his five-pack-a day smoking habit.
His successor CEO Gary Kelly captured the full breadth of Kelleher’s life-long contributions. Kelly said: “His legacy extends far beyond our industry and far beyond the world of entrepreneurship. He inspired people; he motivated people; he challenged people – and he kept us laughing all the way.”
Born in Camden, New Jersey in 1931, young Herb worked in a soup factory where his father labored, later calling it his best education (including his time at Wesleyan and New York University Law School). Because it taught him how to interact with and understand all kinds of people and “how to produce results, not just paper.”
He attributed to his mother an outstanding influence. In one of his many writings, he described why: “She had a very democratic view of life. She had enormously wide interests in politics and business, so it was very educational in that respect, just talking with her. We’d sit up and talk to two, three, and four o’clock in the morning when I was quite young about how you should behave, the goals that you should have, the ethics you should follow, how business worked, how politics can join with business.”
When you fly Southwest and order refreshments, the flight attendant brings you the drink and a napkin emblazoned with the airline’s motto:
“In a world full of No
We’re a plane full of Yes.”
To make such an expectation a reality, Kelleher put in place a recruiting priority that placed “temperament” above talent and skill. He would say “we could change skill levels through training. We can’t change attitude.”
Southwest ate the lunches of their stodgy competitors by doing business differently: no first class seats, no seat assignment, leg room, lower fares, fast turnaround for its efficiently used aircraft (a record breaking 15 minutes), a great safety record, no fees for changing reservations or checking two bags, using less congested, near-to-cities airports (eg. Chicago, Dallas), flying only one class of airplane— the Boeing 737—to reduce maintenance and training costs and avoiding the “hub and spoke” inconvenience for travelers. Southwest engaged in fuel hedging that locked in prices and then won the bet saving hundreds of millions of dollars over their competitors, when fuel prices soared. It also, until recently, answered the phones immediately with a human being. Its global mileage-reward program rejects termination dates. It is now the nation’s largest domestic airlines conveying 120 million passengers last year to over 100 destinations.
“We market ourselves on the personality and spirit of ourselves,” he told an interviewer. Which is why some flight attendants love to tell jokes during the pre-take-off announcements which gets passengers to either chuckle or roll their eyes in mirth.
Kelleher was a many splendored human being. He and his wife, Joan Negley, raised a family of four children. He had a robust, quirky side to him, riding motorcycles, and engaging in amusing stunts that have become legendary in both family and company history.
With his 58,000 productive employees, Kelleher, in the words of Robert Mann, an airline industry analyst, “literally brought air travel to the masses on a scale that was unimaginable.” Small wonder that Herb immediately approved my suggestion that Southwest’s mantra should be – “We do not imitate!”
His self-deprecation was consistently funny. One sample: “Because I am unable to perform competently any meaningful function at Southwest, our employees [they were also shareholders] let me be C.E.O.”
No one has been able to imitate Kelleher’s super-successful management philosophy, his hands-on behavior and authenticity. They may install cut-rate fares, but unfortunately for the people, Kelleher stands as one of a kind.