Southwest Airlines Inc. Case Study

Southwest Airlines Inc.

Rollin King, a San Antonio, Texas entrepreneur, and Herb Kelleher, an attorney, founded Southwest Airlines in 1967. Their goal was to copy the low-cost / low fare business model that proved successful for Pacific Southwest Airlines based in California. Herb Keller filed papers to incorporate the airline and an application with the Texas Aeronautics Commission (TAC) to begin service between Dallas, Houston and San Antonio. The TAC unanimously approved the application but Southwest’s competitors obtained a temporary injunction preventing Southwest from flying. After many legal battles with its competitors Southwest was given the green light to start flying. Southwest began service on June 18, 1971; a day that began an unprecedented history for an airline that survived tough legal battles and through its leadership implemented innovative cost reduction strategies and is currently enjoying industry leading profits and overall success.

Legal Battles

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