# Southwest Airlines: Herb Kelleher

- Show: [How I Built This](https://hardwarepodcasts.com/podcast/how-i-built-this)
- Published: 2016-11-21
- Length: 33m
- Page: https://hardwarepodcasts.com/podcast/how-i-built-this/2016-11-21-southwest-airlines-herb-kelleher

## Summary

Herb Kelleher, co-founder of Southwest Airlines, recounts the 4.5-year legal battle against incumbent carriers like Braniff and Texas International to launch the airline in 1971. He explains how Southwest achieved profitability through operational efficiency, such as 10-minute gate turns and a single aircraft type, while maintaining low fares and high employee compensation. Kelleher details the strategic decision to focus on profitability over market share and the financial discipline of funding new planes with internal cash flow to avoid bankruptcy risks.

## Chapters

- [0:00](https://hardwarepodcasts.com/podcast/how-i-built-this/2016-11-21-southwest-airlines-herb-kelleher#t=0) Introduction and Early Skepticism
- [6:01](https://hardwarepodcasts.com/podcast/how-i-built-this/2016-11-21-southwest-airlines-herb-kelleher#t=361) The Legal Battle and Funding Crisis
- [11:18](https://hardwarepodcasts.com/podcast/how-i-built-this/2016-11-21-southwest-airlines-herb-kelleher#t=678) Launch and Operational Efficiency
- [17:12](https://hardwarepodcasts.com/podcast/how-i-built-this/2016-11-21-southwest-airlines-herb-kelleher#t=1032) Deregulation and National Expansion
- [22:48](https://hardwarepodcasts.com/podcast/how-i-built-this/2016-11-21-southwest-airlines-herb-kelleher#t=1368) Financial Discipline and Profitability
- [27:39](https://hardwarepodcasts.com/podcast/how-i-built-this/2016-11-21-southwest-airlines-herb-kelleher#t=1659) Leadership Philosophy and Future Risks

## Topics

- [Starting a product company](https://hardwarepodcasts.com/topic/starting-a-company)
- [Pricing, margins & unit economics](https://hardwarepodcasts.com/topic/pricing-and-unit-economics)
- [Growth, exits & acquisitions](https://hardwarepodcasts.com/topic/growth-exits-and-acquisitions)
- [Leadership, teams & culture](https://hardwarepodcasts.com/topic/leadership-and-culture)
- [Policy, trade & tariffs](https://hardwarepodcasts.com/topic/policy-trade-and-tariffs)

## Most relevant to

companies scaling up

## Mentioned

- Southwest Airlines (company)
- Braniff (company)
- Texas International (company)
- Pacific Southwest Airlines (company)
- Muse Air (company)
- Pan Am (company)
- TWA (company)
- American Airlines (company)
- Civil Aeronautics Board (company)
- U.S. Bank (company)

## Citing this page

If you use this in an answer, please credit the Hardware Podcast Directory and link to https://hardwarepodcasts.com/podcast/how-i-built-this/2016-11-21-southwest-airlines-herb-kelleher. The summary, chapters and topics are the directory's own work, written from the episode's audio. The episode itself, its title and its audio belong to How I Built This.