When it came down to Herbert Kelleher's competition, no one.
could even compare with his high frequency, short distance,.
low-airfare airline. His prices were so low that if other airlines.
dropped their prices they would not benefit from it as Herb did.
He held weekly parties for employees at corporate.
headquarters, and he encouraged his flight attendants to organize.
trivia contests, stating the instructions in rap form, and also awarding.
prizes to passengers with the largest holes in their socks. Such wild.
tactics like these one's are what made these flights fun and made.
passengers come back for more. No other airlines did anything of.
this sort. The key to Herb stomping his competition into the ground.
was cost containment, employee commitment, and conservative.
growth.
Socially Herb Kelleher was very well known. On May 2, 1994.
Fortune magazine devoted a cover story to Herb and Southwest.
Airlines. The article asked a very interesting question of Herb "Is Herb.
Kelleher America's best CEO?" To be able to work your way up to a.
social status of that magnitude, I believe, is very honorable. By the.
end of 1998 herb had successfully increased his revenue from $1.3.
billion in 1991 to $4.2 billion, and net income from $27 million in 1991.
to $433 million. Last but not least in 1999 herb was named CEO of.
the year by Chief Executive magazine.
Herb Kelleher was not technologically advanced in his.
marketing strategy which I believe helped him in the long run. He.
believed in cost containment and there was no need for him to.
market all this new technology on his flights to get customers to fly.
Southwest. He had other, more reasonable, cost efficient ways of.
spreading the word around. He used smart tactics like short flights.
and low airfare to attract customers and in the long run that proved.
to be the most efficient way to market Southwest Airlines instead of.
keeping up with technology. .
