Herbert David Kelleher (March 12, 1931 – January 3, 2019) was an American
billionaire
A billionaire is a person with a net worth of at least one billion (1,000,000,000, i.e., a thousand million) units of a given currency, usually of a major currency such as the United States dollar, euro, or pound sterling. The American busin ...
airline businessman and lawyer. He was the co-founder, later
CEO
A chief executive officer (CEO), also known as a central executive officer (CEO), chief administrator officer (CAO) or just chief executive (CE), is one of a number of corporate executives charged with the management of an organization especially ...
, and chairman emeritus of
Southwest Airlines
Southwest Airlines Co., typically referred to as Southwest, is one of the major airlines of the United States and the world's largest low-cost carrier. It is headquartered in Dallas, Texas, and has scheduled service to 121 destinations in the U ...
until his death in 2019.
Early life
Kelleher was born in
Camden, New Jersey
Camden is a city in and the county seat of Camden County, in the U.S. state of New Jersey. Camden is part of the Delaware Valley metropolitan area and is located directly across the Delaware River from Philadelphia, Pennsylvania. At the 2020 ...
, on March 12, 1931, and raised in
Audubon, New Jersey, where he graduated from
Haddon Heights High School
Haddon Heights Junior/Senior High School, previously known as Haddon Heights High School (HHHS), is a six-year comprehensive public middle school / high school that serves students in seventh through twelfth grades from Haddon Heights, in Cam ...
. He earned a
bachelor's degree
A bachelor's degree (from Middle Latin ''baccalaureus'') or baccalaureate (from Modern Latin ''baccalaureatus'') is an undergraduate academic degree awarded by colleges and universities upon completion of a course of study lasting three to six ...
from
Wesleyan University
Wesleyan University ( ) is a Private university, private liberal arts college, liberal arts university in Middletown, Connecticut. Founded in 1831 as a Men's colleges in the United States, men's college under the auspices of the Methodist Epis ...
where he was an Olin Scholar and where his major was English and his minor Philosophy, and a
Juris Doctor
The Juris Doctor (J.D. or JD), also known as Doctor of Jurisprudence (J.D., JD, D.Jur., or DJur), is a graduate-entry professional degree in law
and one of several Doctor of Law degrees. The J.D. is the standard degree obtained to practice law ...
(cum laude) from
New York University School of Law
New York University School of Law (NYU Law) is the law school of New York University, a private research university in New York City. Established in 1835, it is the oldest law school in New York City and the oldest surviving law school in New ...
where he was a Root-Tilden Scholar.
Career
After clerking for a
New Jersey Supreme Court justice, Kelleher moved to Texas intending to start a law firm or a business. He was a partner in Oppenheimer, Rosenberg, Kelleher & Wheatley, 1969–1981. Kelleher and one of his law clients, Texas businessman
Rollin King
Rollin W. King (April 10, 1931 – June 26, 2014) was an American businessman and investment consultant. He is best known as the co-founder and former director of Southwest Airlines.
Background
King graduated from Case Western Reserve Univers ...
, created the concept with banker John Parker that later became Southwest Airlines. An often retold founding myth claimed the business plan was written out on a cocktail napkin in a
San Antonio
("Cradle of Freedom")
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, map_caption = Interactive map of San Antonio
, subdivision_type = Country
, subdivision_name = United States
, subdivision_type1= U.S. state, State
, subdivision_name1 = Texas
, s ...
restaurant,
though Kelleher and King have both stated that there was no literal cocktail napkin.
They originally devised a very simple plan of connecting the
Texas Triangle
The Texas Triangle (also known as Texaplex) is a region of Texas which contains the state's five largest cities and is home to the majority of the state's population. The Texas Triangle is formed by the state's four main urban centers, Austin ...
with low-cost air service, patterned largely on California's
Pacific Southwest Airlines.
After incorporating the company initially as "Air Southwest Co." in 1967, Kelleher and King faced four years of setbacks and legal challenges from competitors that culminated in winning key cases before the
Supreme Court of the United States
The Supreme Court of the United States (SCOTUS) is the highest court in the federal judiciary of the United States. It has ultimate appellate jurisdiction over all U.S. federal court cases, and over state court cases that involve a point o ...
in December 1970 and the
Supreme Court of Texas
The Supreme Court of Texas (SCOTX) is the court of last resort for civil matters (including juvenile delinquency cases, which are categorized as civil under the Texas Family Code) in the U.S. state of Texas. A different court, the Texas Court of ...
in June 1971.
The first flights finally took off on June 18, 1971.
Reflecting back on that time Kelleher said, "I think my greatest moment in business was when the first Southwest airplane arrived after four years of litigation and I walked up to it and I kissed that baby on the lips and I cried."
Kelleher's early involvement in the company was helping the company navigate legal concerns and as an advisor to the operation and later as general counsel.
Lamar Muse Lamar or Lamarr is a word with multiple origins that may refer to:
People
*Lamar (given name), a list of people
* Lamar (surname), a list of people
Fictional characters
*Hedley Lamarr, in Mel Brooks's movie ''Blazing Saddles'', played by Harvey ...
was hired as CEO, but after struggles between Muse and King escalated over the next several years, Muse resigned in 1978. Kelleher was installed as chairman of the board in March of that year and the board appointed him as temporary CEO until hiring
Howard Putnam
Howard D. Putnam (born August 21, 1937) is an American businessman. He was CEO of Southwest Airlines for three years, and later CEO of Braniff International Airways at the time of its bankruptcy.
Career
When Putnam was 23 years old, he was a s ...
as the new CEO and president.
In 1981, after Putnam left to head
Braniff Airways, he was appointed the full-time CEO and president, positions he held for 20 years.
Under Kelleher's leadership, Southwest succeeded by a strategy of offering low fares to its passengers, eliminating unnecessary services, using a single aircraft type (the
Boeing 737
The Boeing 737 is a narrow-body aircraft produced by Boeing at its Renton Factory in Washington.
Developed to supplement the Boeing 727 on short and thin routes, the twinjet retains the 707 fuselage width and six abreast seating with two un ...
) (except for use of the Boeing 727 and use of MD-80 by TranStar and 717 by AirTran), avoiding the
hub-and-spoke scheduling system used by other airlines in favor of building
point-to-point traffic, and focusing on secondary airports such as
Chicago-Midway
Chicago Midway International Airport , typically referred to as Midway Airport, Chicago Midway, or simply Midway, is a major commercial airport on the Southwest side of Chicago, Illinois, located approximately 12 miles (19 km) from the Lo ...
(instead of
Chicago-O'Hare
Chicago O'Hare International Airport , sometimes referred to as, Chicago O'Hare, or simply O'Hare, is the main international airport serving Chicago, Illinois, located on the city's Northwest Side, approximately northwest of the Loop business ...
),
Dallas Love Field
Dallas Love Field is a city-owned public airport northwest of downtown Dallas, Texas., effective April 10, 2008 It was Dallas' main airport until 1974 when Dallas/Fort Worth International Airport (DFW) opened. Love Field covers an area of a ...
(instead of
DFW), and
Orange County, California
Orange County is located in the Los Angeles metropolitan area in Southern California. As of the 2020 census, the population was 3,186,989, making it the third-most-populous county in California, the sixth-most-populous in the United States, a ...
but later some hub flights were operated at airports, such as
ATL
ATL may refer to:
Places
* Atlanta, a city in the U.S. state of Georgia
** Hartsfield–Jackson Atlanta International Airport (IATA airport code)
** Peachtree station (Amtrak station code)
* Attleborough railway station, located in Norfolk, Engl ...
, LAS, PHX, MDW, DEN, STL, and BWI and some major airports, like LGA, LAX, SFO, and DEN. The company he founded and built has consistently been named among the most admired companies in America in ''
Fortune
Fortune may refer to:
General
* Fortuna or Fortune, the Roman goddess of luck
* Luck
* Wealth
* Fortune, a prediction made in fortune-telling
* Fortune, in a fortune cookie
Arts and entertainment Film and television
* ''The Fortune'' (1931 film) ...
'' magazine's annual poll.
''Fortune'' has also called him perhaps the best CEO in America.
Kelleher's outrageous personality created a
corporate culture
Historically there have been differences among investigators regarding the definition of organizational culture. Edgar Schein, a leading researcher in this field, defined "organizational culture" as comprising a number of features, including a s ...
which made Southwest employees well known for taking themselves lightly but their jobs seriously.
His culture-leadership was well-demonstrated in an
arm-wrestling
Arm wrestling (also spelled armwrestling) is a sport with two opponents who face each other with their bent elbows placed on a table and hands firmly gripped, who then attempt to force the opponent's hand down to the table top ("pin" them). The s ...
event in March 1992. Shortly after Southwest started using the "Just Plane Smart" motto, Stevens Aviation, who had been using "Plane Smart" for their motto, threatened a trademark lawsuit, which was resolved between Kelleher and Stevens Aviation CEO Kurt Herwald in an arm-wrestling match, now known as "Malice in Dallas".
Kelleher lost the match, but was allowed to use the slogan in exchange for a $5,000 charitable donation and conceding Stevens' legal claim to the slogan.
In March 2001, Kelleher stepped down as CEO and president of Southwest. He passed the CEO role onto James Parker and the president role to
Colleen Barrett
Colleen C. Barrett (born September 14, 1944) is the President Emerita of Southwest Airlines, and an influential figure in the founding and development of the company. In 2001 she became the first woman to serve as president of a major airline.
...
, although he remained chairman.
In July 2007, Southwest announced that Kelleher would step down as chairman and resign from the board of directors in May 2008. The retirement of Barrett as president was announced at the same time, though the two would remain full-time employees for another five years.
Kelleher ultimately stepped down as chairman on May 21, 2008. Immediately following, Southwest Airlines filled both the chairman and president positions with then-current CEO
Gary C. Kelly, who had taken over the CEO position from Parker three years earlier.
Kelleher was given the title of chairman emeritus with an office at Southwest Airlines headquarters and he remained connected to the company until his death in 2019.
In July 2010, Kelleher was appointed chair of the
Federal Reserve Bank of Dallas
The Federal Reserve Bank of Dallas covers the Eleventh Federal Reserve District, which includes Texas, northern Louisiana and southern New Mexico, a district sometimes referred to as the Oil Patch.
The Federal Reserve Bank of Dallas is one of 12 ...
board of directors for 2011. Kelleher's term expired in 2013. Previously, he had served as deputy chair.
Awards
Kelleher was the recipient of over 100 awards and honors in the worlds of business and aviation during his life.
["Southwest Airlines Public Relations - Herb D. Kelleher"](_blank)
, accessed January 4, 2019. Some of the most notable include:
* Inducted into the Texas Business Hall of Fame, 1988.
* ''
Tony Jannus Award'' for outstanding leadership in the commercial aviation industry, 1993.
*Golden Plate Award of the
American Academy of Achievement, 1996.
* ''
Chief Executive'' named him CEO of the year for 1999.
*
International Air & Space Hall of Fame inductee at the
San Diego Air & Space Museum, 2002.
*
Bower Award for Business Leadership, 2003.
*
L. Welch Pogue Award for Lifetime Achievement in Aviation, 2005.
["Former JetBlue CEO to be next Pogue Award recipient,"](_blank)
April 12, 2016, '' Air Transport World,'' retrieved July 14, 2017
* Inducted into the
National Aviation Hall of Fame
The National Aviation Hall of Fame (NAHF) is a museum, annual awards ceremony and learning and research center that was founded in 1962 as an Ohio non-profit corporation in Dayton, Ohio, United States, known as the "Birthplace of Aviation" with it ...
, 2008.
* The section of
Cedar Springs Road
Cedar Springs Road is a road mainly in Uptown Dallas. The road also connects to Dallas Love Field and provides access to its terminal. It also once was a major thoroughfare through central Dallas and the Turtle Creek area in the early 1900s. Dall ...
in
Dallas
Dallas () is the List of municipalities in Texas, third largest city in Texas and the largest city in the Dallas–Fort Worth metroplex, the List of metropolitan statistical areas, fourth-largest metropolitan area in the United States at 7.5 ...
, Texas, leading to
Love Field Airport
Dallas Love Field is a city-owned public airport northwest of downtown Dallas, Texas., effective April 10, 2008 It was Dallas' main airport until 1974 when Dallas/Fort Worth International Airport (DFW) opened. Love Field covers an area of a ...
was officially renamed Herb Kelleher Way in 2014.
Personal life
At Wesleyan he was a member of
Delta Kappa Epsilon fraternity. On a blind date at a basketball game, he met Joan Negley who was a student at
Connecticut College in
New London. The two got married, and Joan was the person who introduced him to the
state of Texas, which he also fell in love with, saying "The greatest business decision I ever made ...was the move to Texas."
They had four children, Julie, Michael, Ruth and David.
Kelleher was known for getting little sleep and for his affinity for
Wild Turkey
The wild turkey (''Meleagris gallopavo'') is an Upland game bird, upland ground bird native to North America, one of two extant species of Turkey (bird), turkey and the heaviest member of the order Galliformes. It is the ancestor to the domestic ...
bourbon and cigarettes.
He was diagnosed with
prostate cancer
Prostate cancer is cancer of the prostate. Prostate cancer is the second most common cancerous tumor worldwide and is the fifth leading cause of cancer-related mortality among men. The prostate is a gland in the male reproductive system that sur ...
in 1999, and underwent
radiation therapy
Radiation therapy or radiotherapy, often abbreviated RT, RTx, or XRT, is a therapy using ionizing radiation, generally provided as part of cancer treatment to control or kill malignant cells and normally delivered by a linear accelerator. Radia ...
.
He died on January 3, 2019, in Dallas at the age of 87.
References
External links
Business Week – Herb Kelleher on the Record* ''Nuts! Southwest Airlines' Crazy Recipe for Business and Personal Success''.
How I Built This – Southwest Airlines: Herb Kelleher*
{{DEFAULTSORT:Kelleher, Herb
Airline founders
1931 births
2019 deaths
Haddon Heights Junior/Senior High School alumni
People from Camden, New Jersey
People from Haddon Heights, New Jersey
20th-century American businesspeople
21st-century American businesspeople
American airline chief executives
Businesspeople in aviation
New York University School of Law alumni
Southwest Airlines people
Texas lawyers
Wesleyan University alumni
20th-century American lawyers