for his law degree. Kelleher was not always the entrepreneur he is now known as today. He started out practicing law on the East Coast before he moved to Texas in hopes to start his own law firm. Texas was booming with risk takers and success, the perfect market for entrepreneurs.
Kelleher did not start his own law firm, instead in 1967 he was confronted by one of his clients and pursued his visions for flying.
His client, Rollin King, who had owned a small air service in San Antonio, tried to persuade Kelleher to help him with his dream to find a cheaper and more convenient way of travel to a triangle of cities like, Houston, San Antonio, as well as Dallas. Kelleher agreed, the company’s first paperwork was then sketched on a cocktail napkin. He filed Southwest’s incorporation documents during March of 1967 and the required documents to fly the following November. Kelleher could not just jump into the entrepreneurial business without any qualifying skills, he had great leadership, a kind that differed him from the competition, he did not just let the head executives make all the decisions, each employee was involved in decision processes. He used this skill along with determination, and integrity to build the business. Southwest Airlines were off to a rocky start, the monopolizing airlines did not like the cheaper airline. Kelleher’s airline goal was to eliminate unnecessary services and wanted to make the airlines cheaper or maintain the lowest fares he utilized secondary airports which are smaller airports. The competition, large airlines like Branniff, came back with lawsuits and restraining orders against Southwest. Southwest did not go down without a fight, when Southwest had been in the running for only five months, the two-tier fare system
which is one of the most important innovations in airline marketing history was made. Southwest, flying at night became cheaper, it cost only $10 for anyone flying Southwest to board. This caused a spike in business for Southwest, a company that had never even advertised, and was now filling up planes. The monopolizing airlines were yet again threatened and started competing with Southwest, lowering their Dallas-Houston fare to a small $13 to better compete. After the terrorist attack of September 11, 2001 and the 2008 and 2009 economic crisis, the airline industry suffered a major drop in business and many companies are still in debt or have gone bankrupt. This played an effect on Southwest’s success, but due to their low-cost prices, Southwest’s reputation grew and are now seen as the company that can force a competitor into bankruptcy. The Southwest company held strong during this crisis. Kelleher became an entrepreneur after practicing law but quickly switched over to his visions for flying. He had great leadership skills that won him many awards and friendships, he was elected President and CEO of company in 1981.he stepped down from his presidential position in 2008 at the age of 77. Southwest Airlines is now ranked the fifth largest airline in the United States, however it is the only one to turn a profit for 24 consecutive years which only means success for the future of this company. Other airlines have died off in times of economic crisis but due to Southwest Airlines’ cheaper more convenient flights, Southwest Airlines will remain on top.