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Soutwest Airlines Case Study

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Soutwest Airlines Case Study
Southwest Airlines was founded by Rollin King and Herb Kelleher and began in 1971, servicing Dallas, Houston and San Antonio. In the mid 1980's Southwest Airlines was the first to offer the frequent miles program. Allowing the passenger to bank traveled air miles to be latter used credit for a free ticket or reduced airfare. Southwest Airlines were also the pioneers of the senior discounts, fun fares and the fun packs.
1984 marked the 4th consecutive year Southwest Airlines ranked number one in customer service. By 1998 Southwest Airlines was the 5th larges US air carrier, caring over 50 million passengers a year servicing the Northeast, Southwest and other key locations throughout the United States. In 1987, Southwest Airlines took over TranStar Airlines and in 1994, Southwest took over Morris Air. This gave Southwest a stronger edge in the market
Southwest Airlines was originally incorporated to serve three cities in Texas as Air Southwest on March 15, 1967, by Rollin King and Herb Kelleher. According to frequently-cited story, King described the concept to Kelleher over dinner by drawing on a paper napkin a triangle symbolizing the routes (Dallas, Houston, San Antonio).
Some of the incumbent airlines of the time (Braniff, Aloha Airlines, United Airlines, Trans-Texas, and Continental Airlines) initiated legal action, and thus began a three-year legal battle to keep Air Southwest on the ground. Air Southwest eventually prevailed in the Texas Supreme Court, which ultimately upheld Air Southwest’s right to fly in Texas. The decision became final on December 7, 1970, when the U.S. Supreme Court declined to review the case without comment.
The story of Southwest’s legal fight was turned into a children’s book, Gumwrappers and Goggles by Winifred Barnum in 1983. In the story, TJ Love, a small jet, is taken to court by two larger jets to keep him from their hangar, and then to try and stop him from flying at all. Taken to court, TJ Love’s right to fly is upheld

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