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This paper will analyze and evaluate the behavioral (people oriented) leadership styles of the legendary Herb Kelleher, former CEO of Southwest Airlines (SWA). The researcher will provide details from 1971 - 2008, outlining SWA successes from a regional air carrier to a global competitor under the leadership of Herb Kelleher. The paper will also include the company overview, SWA business model, highlights of the company, global challenges, global leadership, leadership approaches, changing of the guard, and conclusion. For the transition ofpower, key findings will examine the next leader of Southwest Airlines.
INTRODUCTION
Herb Kelleher was CEO, President, and Chairman of the Board from 1971-2008 with Southwest Airlines. In those years, SWA has been a top competitor in the United States airline rankings for the last 46 years with over $20 Billion in revenue for 2016 under the leadership of Herb Kelleher (former CEO, President, and Chairman of the Board) and Gary Kelley, CEO, President, and Chairman of the Board (Southwest Airlines, 2016). According to CBS News airline rankings (2016), SWA ranked number 7 out of a list of 14 airlines in 2016. Forbes (2106) ranked SWA number 13 out of 500 companies as the best employers for 2016. Southwest Airlines has maintained a competitive advantage by putting customer's number 1, providing cost effective services, innovative approach using a unique business model, and quality service.
As of 2016, SWA is the largest carrier with domestic flights in the United States with service to more than 101 cities in all states including 7 countries and 4000 daily flights. SWA's owns and operates over 600 Boeing 737 jets in three different models, including 737-300, 737-500, and 737-700. The majority of older jets (i.e., 737-300 and 737-500) between 9-12 years old, will be replaced by the newer models 737-800 and MAX-8. Fortunately, SWA is a launch customer for Boeing and receives the newer models at a significant discount (Southwest Airlines, 2017).
The purpose of this paper is to evaluate the leadership styles and approaches by founder and former CEO Herb Kelleher in the journey from a regional carrier to a billion-dollar global competitor. Based on the introduction of SWA, the following sections will review SWA history, SWA highlights, global social and economic climate, Herb Kelleher's leadership, changing of...