Something Special About Southwest Airlines

What Makes It Such A Successful Business? It's A Nice Place To Work

(CBS)  Something unusual is going on at Southwest Airlines. Everyone is happy. They all kiss and hug, even President Colleen Barrett and CEO Gary Kelly.

Average Southwest employees like the big bosses. They want to get their picture taken with Kelly. They admire him.

"I think some CEOs have to travel with bodyguards," he told Sunday Morning correspondent Martha Teichner. "So you think about that contrast, it's just something you can't take for granted."

Kelly says the difference between his company and others is simple: "People working together, people lovin' each other, people respecting each other."

Southwest Airlines has been profitable every year since 1973. No other U.S. airline can say that. It's never had a layoff. It's never cut salaries. In fact, it's one of the best-paid, most highly-unionized airlines in the industry. What makes it so successful? A smart business plan, of course, but there is something else that Southwest deems crucial:

"You put your employees first and if you take care of them, then they will take good care of you," Herb Kelleher, the airline's chairman, said. "Then your customers will come back, and your shareholders will like that, so it's really a unity."

Kelleher is legendary in the airline industry for doing things differently than the competition. Before he found himself Southwest's pitchman, Kelleher was a lawyer retained by the airline to get it off the ground - a fight that took him all the way to the U.S. Supreme Court. It seemed the last thing Southwest's competitors wanted to see was a low-cost upstart doing nothing but flying around Texas in and out of Dallas Love Field.

In 1971, "the love airline" took off. At first, Southwest was known for sexy flight attendants in hot pants, which got it the attention it needed.

"You can have a low-cost carrier and people still don't fly it because they don't know about it," Kelleher said. "And so, the schtick kind of fit in with getting known."

By 1978, Kelleher was running the place. His way of doing that was to bring his affectionate, sometimes outrageous sense of fun to management.

"I enjoy, not the theatricality of it, but the opportunity it gives me to be with our people," he said.

"Malice in Dallas" in 1992 had to have been his goofiest stunt: Instead of going to court over who had the rights to the advertising slogan "Just plane smart" - Southwest or a South Carolina aviation sales company - Kelleher agreed to settle the matter with a charity arm wrestling match.

"We're saying, we're having fun," he said. "We want you to have fun, too."

So on any given day, during the final approach into Dallas from Houston, you might hear flight attendant, Cassie Plourd, singing you down. Plourd has been with Southwest 18 years, and so has Frannie Oberman, who says the best joke she tells to passengers is that she's addicted to pressurization.

Today, Southwest Airlines has nearly 34,000 employees. It flies to 64 different cities, has more than 500 planes and is the nation's sixth largest airline. But what makes Southwest Southwest is the fact that it turns flights around fast. This came about by accident because in the beginning, when it had only four airplanes, it had to sell one of them just to stay in business.

"And they went out to the ground ops folks and said, 'Guess what? We're gonna maintain the same schedule that we had with four aircraft now with three aircraft,'" said Kevin Freiberg, who co-wrote a book on Southwest with his wife, Jackie. "And of course, everybody said, 'How are you gonna do that?' He said, 'Well, you're gonna have to turn an airplane in 10 minutes' and of course the average turn-around time at that point was more like 45 minutes or an hour."

Here is where the relationship the airline has with its employees comes in. It is what is known as the Southwest culture.

"In the majority of businesses that are truly successful today, they've got a really definitive cause that everybody rallies around and believes in and serves toward, and works hard for. I think that's critical and Southwest got that 34 years ago," Jackie Freiberg said.

Turnarounds now average 23 minutes, but that's still better than half the time it takes other airlines. Customers, as passengers are called, are herded onto planes in three big groups. They don't have assigned seats, but most of the time, they don't seem to mind.

And when he asked his pilots' union to agree to a five-year pay freeze, Kelleher took one, too. He figures it cost him $75 million to $100 million in compensation, but it bought him trust.

"To me, seventy, hundred million - what difference does it make?" Kelleher said. "There's nothing particular I'd like to do that I can't do."

If you walk down any hall in Southwest's Dallas headquarters, there are thousands of pictures - glimpses of what love looks like at the love airline after all these years.

Southwest's culture bears the likeness of Kelleher and Colleen Barrett, who are in the process of retiring. Employees and analysts alike agree that the future of the airline depends on preserving it when Kelleher and Barrett are gone.

"When I first came here I thought, where's the Kool Aid?" Oberman said. "And it was sort of, 'This can't be true.'"

There are some important expectations for every Southwest employee.

"They have to practice the golden rule every day - first with each other, and then with our passengers," Barrett said. "They have to serve because they want to. They have to smile because they want to, not because they have to."

[no2v1]

Sunday Morning..
I thought the report about Southwest Airlines was really good.As a pilot (private),it does reflect the close family types in the aviation community.It reminded me of my company ( Sony ) and how we use to be like that as well.We too had a terrific manager,we couldn`t wait to get in to work..it was that good.BUT..as was mentioned on the report,management has to take care of it`s employees to progress but we were taken over by another manager from Terre Haute who literally is a tyrant.We`re on the verge of the possibility of shutting down,most of us have been terminated to be replaced by "temps".But you`e report about Southwest airlines saddened me a bit as it made me think of what we had at Sony in Pitman,NJ,and how literally "one bad apple can spoil the basket".

thankyou

[flyairhost]

Can someone send a video of this report to the CEO''s of American and United??? They make millions of dollars in bonuses while everyone else in the company has taken paycuts. Their "management skills" have demoralized everyone in their respective companies and it reflects in the services and customer service skills of the employees. They do what they have to do and that''s it. They don''t go any further of what they have to do. If you keep your employees happy, everyone else benefits, from customers to shareholders. Is UA or AA listening?????????

[bellackick]

I have been flying with Southwest from Providence since the early 90s and it is fantastic! Always on time and a much easier airport to drive to for me than Logan Airport in Boston. You are used to bringing your food with you, a good book as their are no little tvs on the back of the seat, and usually you find a good hearted person to chat with next to you. They have a great group of people working for them and I love their sense of humor. Once on a flight to Miami, at the beginning of the flight attendant''s talk she asked-"Has anyone lost a wallet?" As everyone checked their belongings-she said-"Now that I have your attention...!" Just one example of the jollies they all have. It lightens you up and relaxes you on your trip. Every CEO should follow their example by taking care of their workers first, and then everyone will be happy!

[bellackick]

I have been flying with Southwest from Providence since the early 90s and it is fantastic! Always on time and a much easier airport to drive to for me than Logan Airport in Boston. You are used to bringing your food with you, a good book as their are no little tvs on the back of the seat, and usually you find a good hearted person to chat with next to you. They have a great group of people working for them and I love their sense of humor. Once on a flight to Miami, at the beginning of the flight attendant''s talk she asked-"Has anyone lost a wallet?" As everyone checked their belongings-she said-"Now that I have your attention...!" Just one example of the jollies they all have. It lightens you up and relaxes you on your trip. Every CEO should follow their example by taking care of their workers first, and then everyone will be happy!

[ceruleanbill]

Good lord, you mean that sometimes the smart, energetic, dogged, determined, persistent, visionary, tenacious, goofy good guys *do* win?

[caspecial]

No argument that Southwest''s policy of making their employees a number one priority is a good business decision. However, from a customer''s perspective I have flown hundreds of Southwest flights over the past ten years for business reasons and Southwest''s decision to make customers a lower priority is evident in their customer service. A couple of egregious examples: Southwest''s baggage department destroyed two expensive Hartmann suitcases (on two separate flights) and refused to accept responsiblity for the damage either time. One suitcase was replaced months later after I spent hours calling and writing to Southwest''s customer service department. Example #2: During flight boarding a flight attendant told passengers who were slowly boarding to "sit down and shut up so we can get this plane in the air". If that announcement was meant to be humorous, it failed in it''s intent. You should have interviewed more Southwest passengers if you intended to present an objective story on Southwest.

[stezzer]

"They all kiss and hug". Yuck! Who wants that on a Monday morning?

[nothappyatall]

Dam, I almost want to APPLY! but I have my own business.
I agree, one tyrant of a manager/supervisor/boss can make or break a company.
That and the mega-corporations stink, the ones like your credit card companies whose employees are nothing but extension numbers on the phone system, who never use a full name in any correspondence and who could care less.

The paper had an article about Nation-wide insurance, who recently fired several employees who routinely hung up on customers who called to file claims or needed help!
They claimed EVERYONE else in the office did the same and one said she didn''t know WHY she did it. One other said she resented the other office people forwarding calls to her for as she put it "to do THEIR work for them" so she just hung up on the customers;

Nationwide Mutual Insurance has fired five Iowa workers who routinely hung up on policyholders trying to file claims with the company.

According to state unemployment records, the fired employees all worked at Nationwide''s Des Moines office as claims service representatives, handling telephone calls from people who were trying to file claims after fires, traffic accidents or other events covered by insurance policies.

[makita98]

A company that put workers first? I did not think that was possible. I would have loved to be able to play the video of the whole article again.
any chance CBS? I am happy for the lot of them.
Hope others are listening.

[nothappyatall]

Jordan Doyle hung up on 34% of her callers. Lindsay Gillum, was accused of hanging up on 85 of callers. Amy Halupka, was accused of hanging up on about 50 policyholders over a 2-week period
The 3 along with 2 others were fired Doyle and Gillum subsequently sought unemployment benefits

Doyle testified that she routinely hung up on policyholders other Nationwide representatives transferred to her

"I didn''t think it was fair that they could keep transferring all of their work over to us," she testified. "So when I would see on the phone that it was a transfer from them, I would just hang up."
Gillum testified that she hung up on policyholders to boost her job-performance statistics

THEN SHE PULLS THIS BS:

Doyle testified that the practice of hanging up on policyholders was widespread but that Nationwide fired only the workers who were about to take some form of paid or unpaid leave

"There were other people who were doing the same things who are still working there and still hanging up on people. There were 5 of us that were fired. 3 were pregnant, about a month away from our due date. One of the girls that was fired was trying to get pregnant. And the 5th girl was taking short-term disability"
Doyle said she intends to appeal the decision, and she reiterated her claim that the practice of hanging up on policyholders was widespread

"90% of the people who work in that call center do that" she said
Administrative Law Judge Marlon Mormann awarded benefits to Gillum

[standlee5]

Gee what a concept. You''ve got NWA totally s.c.r.e.w.ing their employees and their planes are filthy trying to outsource flight crews to china with the CEO making millions in bonuses. What a contrast. The lowlife scavenger CEOs of the past 15 years should be hung up for public humiliation and condemnation.

[megan328]

Yeah, well I don''t care how lovey-dovey the employees are with each other - My husband (who is a big guy) was treated very VERY rudely & embarrassed in public by the wonderful employees of SW and we will never use them to fly anywhere again, and nether will any or our children or their families or my sisters or brother or his family - there are ways to do things that do not involve degrading and embarassing people. Also, we are not the only ones who have been treated poorly by them.

[wattermelann]

I have flown southwest a few times and I have no complaints. I would rather fly southwest than any other airlines because they are usually cheaper than any other airlines-and I am cheap. birds of a feather flock together-customers who have a sense of humor tend to shop at planes who also have a sense of humor.

[monkfellow]

megan328--PROMISE???????
That leaves plenty of seats available for the rest of us who find Southwest the absolute best airline,despite me-first passengers out there!

[drivelphobe]

megan328....

I suppose you mean your husband is obese, can''t walk without waddling, doesn''t fit in a seat, and is rude to boot when you spinningly refer to him as "a big guy". The airlines shouldn''t have to accomodate some giant, fat, slob who is "sensitive'' about all the looks he gets because of his condition. What did the poor airlines do, make him sit in a seat where he might not disturb people around him, perhaps by the bulkhead?

The airlines didn''t degrade and embarrass him. He does this all day long to himself by maintaining his obese condition and going in public.

You sound like the typical whiner who thinks the world should accomodate and cater to you.

It''s great that you and your fat family stay off of the best airline flying in the USA. The public is tired of subidizing the obese in this country. Buy your own plane and see what it costs to equip it for fat flyers.

Good flying to you.

Hey I worked for them...their not all peaches and cream like everyone is led to believe.

[imrich11]

I have worked for SWA for over 25 years now. I have lived the culture they talk about. Those that might be disgruntled employees are USUALLY those of the "entitlement" era, those that don''t understand todays version of customer service. Come to work, do your job, it''s pretty easy. As far as publically, SWA is the ONLY airline that is fair with all customers. They are fair and honest when it comes to low fares. They don''t gouge you in one market pair to compensate for a low fare in another.
If a customer leaves unhappy, well let''s just say SWA will do their best to bring them back. SWA really does care about the clients it handles. We don''t care of finacial background, ethnic background or whatever, SWA is there to serve all including it''s internal customers, it''s employees.
If they treated employees badly, then just ask why are there so many that have been around for so long. If we treated customers badly, then I wouldn''t be there.

[cruiser111-2009]

I have never flown southwest but may possibly in the future. Although i''m not particularly excited about the prospect of being herded onto a plain like cattle without assigned seating

[brianbwb-2009]

I wonder how much Southwest Air paid for this ad, masquerading as an article. I have some stories I would like to see covered, that I think are more important...

[xlib]

This doesn''t sound like the Southwest I flew from Vegas. The airline that lines people up in rows A, B, or C ending in a free for all for seats. Sort of like the old Chicago cattle yards. The same airline where our flight was 2 hours delayed and they didn''t tell us. When we asked we were given a real snarky airlines. That Southwest??
I''ll take JetBlue any day, any dat at all.
Maybe Southwest leans way to the left. That could be the reason.

[megan328]

Hello drivelphobe

Yes I do mean my husband is obese (and the tone of your comment tells me you would make a great SW employee.) If the
SW employees had taken my husband aside and said there was a problem and that he needed to purchase an extra ticket etc we would have no problem with that, but he was held up to ridicule in public in front of other passengers and that is no way to treat a paying customer much less a human being.

We are well aware that in our society one of the biggest "sins" a person can make is to not be one of the "pretty people" and that are plenty around ready to criticize and find fault and make fun when they have no idea how kind and good and caring the other person may be, of the wonderful things the other person may have done to help make this world a better place etc, bottom line if you are not pretty and thin and dress well, then forget about being treated like a human being.

[drivelphobe]

Good morning megan328......

Your response is wll taken. It sounds like your husband is a kind and wonderful person and fortunate to have you. My comment was too personal and I apologize. I do understand the plight of obese individuals as I have several in close proximity through family and friends. I am discouraged however by their complete unwillingness to change their diet and become involved in some sort of exercise program. They are huge, unhealthy, dress accordingly, and can''t walk properly. They disgust me with their constant complaining about how heavy they are while they continue to eat large quantites of garbage food, some drinking to excess as well.

There are some heavy individuals who I supposed have more difficulty losing the weight than others, perhaps due to medical conditions. However, I believe that fat comes from poor consumption habits and is not a medical condition. It is a lack of self control.

I have little patience with these people. I just think obese people have a responsiblilty to understand the potential problems their size creates, and plan ahead. It would also seem correct for the airline to have mentioned the double seat issue to you prior to actually looking for a seat. Don''t forget the potential law suit the airlines might have if they offend the wrong individual.

[megan328]

drivelphobe - your apology is accepted even tho it has very much a "Yes, but I am right to be rude because fat people disgust me and they deserve it" flavor (I''m sure that is how the SW employess felt too) - if you will reread what I am upset about, it is not about being charged for an extra seat, but about how the situation was handled by the SW employees. Disgusting obese people work just as hard for their $ as you lovely thin perfect people. If a human being cannot be treated with respect just because that is the right thing to do, then at the least a customer who has paid their hard earned $ for some service or product, should be treated with a little consideration and politeness no matter what their size.

~megan

[megan328]

monkfellow - have no fear you are safe - & fwiw that particular flight was half empty and there were plenty of open seats available so no one had to sit next to my husband except me - too bad being a jerk isn''t as visually notciable as being overweight - I could have avoided sitting next to people like you.

[ramos937]

The writer writes about a SW Airlines that I just do not know and I have flown in SW planes for years. No employee would behave the way the writer describes.

Having said that, I fly SW whenever I have a choice. Their prices are reasonable and service is good. Every SW flight attendent I have encountered has been helpful and courteous. I am overweight and need a belt extender whenever I fly. The attendent has helped me install it and adjust it so I am comfortable. Many times, the volunteer pillows so I can doze comfortably. The employees are dressed professionally and look good.

I do not recogize the clowns the writer describes and I am glad not have met them on SW. I would not appreciate them. Just give me the present employees.

[sharncedar]

The diffence with Southwest airlines is the captial model that drives it - the other airlines carry heavy debts and are therefore in fact "owned" by the big banking interests. Just like today''s college students, ironically. That forces them to make horrible moral choices, to try to convert everything into quick returns or unrealistic rapid growth. Like today''s college students, ironically.

This is where the debt-based model breaks down, it does allow rapid growth for a few years but after everyone is saddled with excessive debt there is a negative attitude and outlook all around. We all end up working for uneeded and excessive wealth of a few individuals. The pride of ownership is lost, the innovation of independence is lost, the idea creation of real and fair competition is lost.

We are on a downward spiral, and the cause is our bad financial model.

[toy4lc]

I think that Southwest Airlines the best in the industry! In fact, I would love nothing better than to work for them as a flight attendant. I will tell you that you should read the book "NUTS". It is a great book for any company or any individual to be able to understand the way that SW has been able to remain to successful all of these years.

[brandy321-2009]

u

[brandy321-2009]

when i was flying swa a passenger was sick then he pass out. the flight attendant took over and started to do cpr.when we landed they took him out.he did wake up and appeard to be doing find.what gets me is in the flight the flight attendants were busy doing cpr and passengers had the nerve to ring the call button to ask for a drink.and got made if they did not get it.
people should rember flight attendants are there to save there buts not kiss it.
i trust southwest and i love flying with them and i feel safe.they allways treat me with great respect.southwest treats every one first class.

[robertkjjj]

Great airline. Nice people with wonderful attitudes. Great service. They run on time. Solid company.
Now, PLEASE just give us the OPTION to reserve a specific seat. Some people will take the option, and others will keep on opting for the festival seating. But, give us the choice!
I love Southwest, but I can''t tell you how many times I''ve been stick in the horrid middle seat because I wound up in the "C" group. All because these guys will not reserve seats days and weeks in advance like the other 99% of the industry.
This is Southwest''s only weakness, and it is maddening.

[robertkjjj]

Megan328, you are indeed pretty clueless and selfish about your husband''s condition, and the other writers here have got it right. What are we all supposed to do, reconfigure all the planes of the world to fit the less than 5% morbidly obese people out there? OK, lets do that. Lets make each plane only 2 seats per row. 1 big Lazy-Boy chair, then a massively wide aisle, then another Lazy Boy chair. And, your RT ticket from LA to Las Vegas now will be $1500. Thank you!!! Great idea!!! Seriously, I despise being stick next to a big fat person on a plane. I once had almost a third of my seat overlapped by the giant fat rolls of the guy next to me. I was almost crushed against the window for 3 hours by this obese man''s body. And don%u2019t even mention the mind-boggling body odor that most fat people have. All I could think the entire flight was "God, why did the airline allow this huge monster aboard?" There is an old but fitting saying: "Your freedom to wave your hands ends where my nose begins". Think about it.

[nlm2383]

I travel a lot, I live across the country from my family and my closest friends. Everytime I visit someone I fly Southwest. Mostly because of the low prices, but also because they are some of the nicest people you''ll ever meet. They do have a little bit of a problem with being on time leaving and arriving, but it''s never effected my schedule.

[KOOLSTUF]

I enjoyed the article, and it%u2019s sending me back to memories of many flites via SWA %u2013 back when the %u201CStewardesses%u201D wore Hot Pants, sang, and told (GREAT) jokes. I also recall: as empty seats became a rarity, and the Hot Pants became history, the %u201CAttendants%u201D were more subdued %u2013 but still very friendly and well-motivated to serve %u2013 and to please.

Given absence of assigned seating, I made it a practice to arrive VERY early, to ensure being a part of the first boarding group. Seeking maximum leg room, I ALWAYS chose the %u201CEXIT%u201D row, while assuring Attendants my history as a firefighter enabled me to deal rationally with crises.

One of my fondest memories relates to a promotion SWA began upon first running commercials during %u201CMonday Night Football%u201D %u2013 airfares were priced at $25.00, on ALL flites departing during the scheduled telecast. Of course, soft drinks and nuts were free, and other beverages low-priced.

SWA remains profitable for all the unique reasons cited %u2013 but I no longer fly ANY airline %u2013until they resume treating passengers as CUSTOMERS %u2013 instead of cattle.