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Leadership

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Title: Leadership


1

2
Leadership
  • Herbert (Herb) D. Kelleher - Executive
    Chairman of the Board Gary Kelly - Vice Chairman
    of the Board and Chief Executive Officer Colleen
    Barrett - President

3
History of Southwest Airlines
  • 1971-Rollin King and Herb Kelleher got together
    and decided to start a different kind of airline.
    Lamar Muse as president of the airline
  • 1973-Southwest has first profitable yeaa
  • 1974- Southwest carries one millionth passenger
  • 1977 SW carries its five millionth passenger and
    stock is listed on the NYSE as LUV
  • 1982- Herb Kelleher comes aboard as permanent
    president, CEO, and chairman of the board for SW
    airlines.

4
History Continued
  • 2004 SW announces its 31st consecutive year of
    profitability and begins offering online boarding
    passes at southwest.com
  • 2006 SW celebrates its 35th anniversary on June
    18
  • Currently More than 33,000 total Employees
    throughout the Southwest system.

5
Where Southwest flies
  • Cities Served by Southwest
  • Southwest flies to 64 cities in 32 states.
  • Albany Indianapolis Phoenix Albuquerque Long
    Island Pittsburgh Amarillo Jackson
    Portland Austin Jacksonville Providence
    Baltimore/Washington Kansas City Raleigh-Durham
    Birmingham Las Vegas Reno Boise
    Little Rock Sacramento Buffalo Los Angeles
    (LAX)St. Louis Burbank Louisville Salt Lake
    City Chicago (Midway) Lubbock San
    Antonio Cleveland Manchester San
    Diego Columbus Midland/Odessa SanFrancisco
    Corpus Christi Nashville San Jose Dallas (Love
    Field) New Orleans Seattle/Tacoma Denver Norfolk
    Spokane Detroit (Metro) Oakland Tampa
    El Paso Oklahoma City Tucson Ft. Philadelphia
    Lauderdale/Hollywood Omaha Tulsa Ontario
    Ft. Myers/Naples West Palm Beach Harlingen/South
    Padre Island Orange County Washington, DC
    (Dulles) Hartford/Springfield Orlando  Houston
    (Hobby)  

6
2006 Financials
2006 Financial Statistics Net income 499
million Total passengers carried 96.3 million
Total RPMs 67.7 billion Passenger load factor
73.1 percent Total operating revenue 9.1
billion
7
Southwest Airlines Distinctions
  • Southwest Airlines has consistently received the
    lowest ratio of complaints per passengers boarded
    of all Major U.S. carriers that have been
    reporting statistics to the Department of
    Transportation (DOT) since September 1987, which
    is when the DOT began tracking Customer
    Satisfaction statistics and publishing its Air
    Travel Consumer Report.
  • The airline adopted the first profit-sharing plan
    in the U.S. airline industry in 1973. Through
    this plan and others, Employees own at least
    eight percent of the Company stock.

8
Distinctions continued
  • The airline is about 87 percent unionized.
  • Southwest Airlines is a member of the FORTUNE
    500.
  • The Ronald McDonald House program, cornerstone of
    the Ronald McDonald Childrens Charities, is the
    primary corporate charity of Southwest Airlines.
    Annually, the Company sponsors the Southwest
    Airlines LUV Classic golf tournaments whose
    proceeds benefit various Ronald McDonald Houses
    and have totaled close to 9 million over the
    past 20 years

9
Social Responsibility
  • Southwest Airlines has always been devoted to
    each and every community that we serve. Our
    Employees, Customers, and neighbors make the
    Southwest Family the LUVing place that it is, and
    we are proud to offer our cities more than just
    friendly and affordable air service. We offer our
    hearts! Thousands of times each year, Southwest
    Airlines and its Employees reach out to
    individuals, families, and entire communities
    providing help where it is needed. Most donations
    are invisibleexcept to the people they affect.
    For Southwest, that is recognition enough.

10
Mission Statement
  • The mission of Southwest Airlines is dedication
    to the highest quality of Customer Service
    delivered with a sense of warmth, friendliness,
    individual pride, and Company Spirit.

11
Southwest Culture
  • Many airlines have tried to copy Southwests
    business model, and the Culture of Southwest is
    admired and emulated by corporations and
    organizations in all walks of life.

12
  • Every company I have ever gone in, they say
    people are number one, but theyre just not. They
    dont live up to that, and we do.
  • Gary Kelly, CFO Southwest Airlines

13
Southwest Airlines Recognitions
  • G.I. Jobs recognized Southwest Airlines in the
    Top 50 Military Friendly Employers of 2006.
    Southwest was the only airline included on the
    list.
  • In October 2007, Southwest Airlines was named
    number two in Leadership Development for a large
    company by Leadership Excellence Magazine.

14
Best company to work for
  • FORTUNE has ranked Southwest Airlines in the top
    five of the Best Companies to Work For in
    America. Southwest ranked first in 1997 and 1998,
    second in 1999, and fourth in 2000. Southwest has
    chosen not to participate since 2000.
  • BusinessWeek ranked Southwest Airlines as one of
    the top 50 Best Places to Launch a Career.

15
Intern Programs-incentives
  • Why Become a Southwest Airlines Intern? Did you
    know...
  • All Southwest Airlines Interns are eligible for
    FREE UNLIMITED space-available travel anywhere
    Southwest Airlines flies.
  • SWA offers a casual dress code.
  • As an intern, you are eligible to participate in
    career development classes, such as Myers-Briggs
    Type Indicator, 737 General Familiarization, and
    Resume building/Interviewing skills workshop.
  • Being a SWA Intern allows you to experience
    informal networking opportunities and social
    functions, such as deck parties, intern outings,
    lunches, and holiday celebrations.

16
To Employees
  • We are committed to provide our Employees a
    stable work environment with equal opportunity
    for learning and personal growth. Creativity and
    innovation are encouraged for improving the
    effectiveness of Southwest Airlines. Above all,
    Employees will be provided the same concern,
    respect, and caring attitude within the
    organization that they are expected to share
    externally with every Southwest Customer.
  • Southwest Airlines

17
Southwests University for People
  • University for People
  • Leadership classes
  • Software training
  • Team performance
  • Personal development
  • Career development workshops
  • Career Development Service
  • Virtual University at Southwest Airlines
    University for People

18
Much more than executives deserve credit
  • Executive assistants are given just as much
    credit that the executives they assist are.
  • The culture of Southwest acknowledges the role
    that each member of the staff contributes to the
    system.

19
  • Ive tried to create a culture of caring for
    people in the totality of their lives, not just
    at work. Theres no magic formula. Its like
    building a giant mosaic--it takes thousands of
    little pieces…The intangibles are more important
    than the tangibles. Someone can go out and buy
    airplanes from Boeing and ticket counters, but
    they cant buy our culture, our esprit de corps.
    Herb Kelleher
  • CEO Southwest
  • Wall Street Journal
  • 8/31/99

20
What defines the culture of Southwest?
  • Southwest received 284,827 resumes and hired
    3,363 new Employees in 2006.
  • Southwest has 1,133 married couples. In other
    words, 2,266 Southwest Employees have spouses who
    also work for the Company.

21
Sources
  • http//www.southwest.com/about_swa/?refabtsw_gn
  • http//www.southwest.com/about_swa/press/factsheet
    .htmlLeadership
  • http//www.swamedia.com/swamedia/factsheet.html
  • http//www.clomedia.com/content/templates/clo_case
    studies.asp?articleid257
  • http//ocw.mit.edu/NR/rdonlyres/
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