Southwest Airlines became the US's largest domestic carrier by offering free bags and open seats — now it's upending one of its most well-known perks (2024)

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Southwest Airlines is the US's largest domestic carrier, serving over 100 destinations across the country. One of the hallmarks of the Southwest experience is that the airline does not assign seats, instead, each passenger is provided a boarding group number. Once on board the aircraft, they are allowed to sit in any open seat. On Thursday, Southwest announced plans to scrap the unassigned seat policy and also sell premium seating options. Southwest started as a small carrier based in Texas and only operated intra-state routes between three cities: San Antonio, Houston, and Dallas. King mapped the network he envisioned, making a triangle between the three key cities. He explained to Kelleher that operating solely in Texas would make the company exempt from the Civil Aeronautics Board's federal regulations, which controlled fares, routes, and schedules. From 1938 to 1978, the airline industry was federally regulated under the CAB as means to ensure major carriers like United and Pan Am were profitable. Fares were sky-high and only business travelers and deep-pocket leisure customers could afford the luxury of flight. The downside was that a lot of the time, planes flew half-empty. Because Air Southwest was certified under the state's aviation regulator, the Texas Aeronautics Commission, it was not bound to federal rules — a clever loophole King unapologetically copied from California carrier Pacific Southwest Airlines. The loophole allowed Air Southwest to fly freely in Texas and undercut competitors' fares, offering more customers the option to fly instead of drive in the large state. The business model was game-changing and a threat to legacy airlines. In 1967, three airlines operating under federal rules, Braniff, Trans-Texas Airways, and Continental Airlines, took legal action against Air Southwest, saying it does not have the right to fly in Texas. The lawsuit took three years to resolve, and in 1970, the Texas Supreme Court ruled Air Southwest could fly in the state. The three airlines then took the case to the US Supreme Court, which declined to review it. Air Southwest's right to fly in Texas was finalized in December of 1970. The carrier officially changed its name to Southwest Airlines in 1971 and commenced operations on June 18 of the same year. The carrier launched with two routes from Dallas Love Field to Houston and San Antonio using three new Boeing 737-200 aircraft. Flights between Houston and San Antonio commenced in November 1971. Part of Southwest's immense success was due to Kelleher's focus on unconventional marketing and unique corporate culture. Kelleher used Pacific Southwest Airways' idea of "Long Legs And Short Nights" for hostesses, as they were called at the time, keeping with the theme of hiring attractive women to work Southwest flights. The airline's first flight attendants were described as long-legged dancers and were handpicked by a committee that included the same individual who picked the hostess on Hugh Hefner's Playboy jet. Kelleher dressed the flight attendants in a bright orange top, orange hot pants, a white belt around the hips, and white side-laced go-go boots. He also pushed for a laid-back, casual inflight experience and only hired female hostesses who were fun, engaging, and had a sense of humor. Southwest also provided a winter version of the uniform, which included orange and white striped hot pants, a blazer, a white top, and an ascot. Kelleher continued the playboy theme by creating a "love" culture at Southwest. The carrier was called the "love airline,” automatic ticket dispensers were "love machines," inflight snacks were "love bites," and drinks were "love potions." The airline also crafted its own special inflight co*cktails, which were free for passengers. A few were appropriately named Kentucky Matchmaker, the Pucker Potion, and the Lucky Lindsay. He even went on to create ads centered around humor and attractive women. In the context of the 1970s, using attractive female flight attendants to gain customers was an industry norm. In 1972, Southwest made a game-changing, innovative marketing move. The company introduced the "two-tier" fare system, which established two separate price points aimed at different types of travelers. The fares were the regularly priced "Executive Class Service" at $26 one-way and the "Pleasure Class" at $13 one-way or $25 roundtrip. "Pleasure Class" fares were available after 6:59 p.m. on weekdays and all day Saturday and Sunday. The two-tier structure was a wild success, with Southwest increasing its average passenger load from 17 before the move to 75 after. In 1973, the company launched a $13 one-way "half-fare" sale on all flights to San Antonio. Southwest's rival, Braniff, responded with its own "get acquainted sale" with $13 fares between Dallas and Houston. This was the start of the $13 Fare War. Southwest knew $13 fares on its only profitable route would run it straight into bankruptcy, so King quickly came up with a marketing campaign that would put Southwest on top. "Nobody's going to shoot Southwest out of the sky for a lousy $13," read the bold ad. Southwest matched Braniff's fare between Dallas and Houston, which was met with praise and respect from customers. As part of the campaign, the airline also offered a free fifth of liquor for passengers who paid the full $26 fare. Business travelers loved the promotion, and lucky for Southwest, three-fourths of its customers opted to pay full price and pocket the free booze. The airline soon became a fan favorite among many Texas business communities, and Braniff was fuming. By the end of 1973, Southwest finally turned its first profit and would continue to profit for 47 years until the coronavirus pandemic ended the streak. Meanwhile, Braniff lost the battle and the war, ceasing operations in 1982. Southwest's early challenges did not end with Braniff. In 1964, the Civil Aeronautics Board demanded the city of Dallas build an airport to serve the entire Dallas/Fort Worth area. In 1968, every air carrier operating out of Love Field agreed to move to DFW when it opened in 1974. However, Southwest was not a part of that agreement and filed suit that it would not move from Love Field when the new airport opened. The airline claimed there was no legal reason to end commercial traffic at Love Field and that the company made no written agreement to move its operations. The city and the DFW Airport Board sued Southwest, saying the CAB rule applied to the airline even if it was made before Southwest was officially founded. However, Southwest argued that its intra-state flights fell outside the jurisdiction of the CAB, so it did not have to leave Love Field. A federal district court agreed with Southwest and ruled that it could operate out of the airport as long as it remained open. When DFW opened in 1974, every airline except Southwest left Love Field. Southwest continued to grow through the 70s, acquiring 10 aircraft and carrying its five-millionth customer by the end of 1977. By 1976, Southwest Airlines had been profitable for three years and proven that government regulation was not necessary for airlines to be successful. Deregulation was a top priority for Jimmy Carter's administration, and it passed the Airline Deregulation Act in 1978, effectively abolishing the Civil Aeronautics Board. Finally, Southwest Airlines was free to operate interstate flights and the airline began to thrive. Meanwhile, major carriers like Eastern Airlines, Trans World Airlines, and Pan Am spread themselves too thin as they tried to rapidly expand. Unlike major carriers, Southwest maintained a simple strategy for success after deregulation, like only operating one aircraft type, cleaning the aircraft before landing to allow for a quicker turn, and focusing on humor in marketing. And its strategy worked. Southwest was prospering while other airlines like Pan Am and TWA collapsed. However, it was not long before the Wright Amendment put another wrench in the company's plans. After deregulation, Southwest wanted to commence interstate flights from Love Field to New Orleans in 1979, but officials at DFW airport feared the increased traffic would hurt the airport financially. So, US Congressman Jim Wright drafted, sponsored, and helped pass a bill restricting passenger traffic at Love Field. The law, known as the Wright Amendment, was signed in early 1980 and amended the International Air Transportation Act of 1979. It restricted flying out of Love Field to cities in Texas and the surrounding states of Louisiana, Oklahoma, Arkansas, and New Mexico. The law was meant to keep Southwest from expanding operations out of Dallas. It only applied to carriers that operated aircraft with more than 56 seats, which Southwest did. So, the airline had to rely on short-haul flights in the five-state area to bolster Love Field operations. In 1997, Kansas, Alabama, and Mississippi were added to the list of reachable states. In 2005, Missouri was also added. However, in 2004, Southwest CEO Gary Kelly launched efforts to repeal the Wright Amendment, using the slogans "Set Love Free" and "Wright is Wrong" in the campaign. In 2006, an agreement was made between Southwest, American Airlines, Dallas, and Forth Worth to phase out the law. They agreed that in eight years, the amendment would be gone, but until then, carriers could fly to any US destination out of Love Field as long as at least one stop was made in any of the nine states under the Wright Amendment. On October 13, 2014, at exactly 12:01 a.m., a countdown clock at Southwest's Headquarters in Dallas hit zero, officially ending the Wright Amendment. A few minutes after, the airline's first scheduled flight outside of the nine Wright states took off from Love Field to Denver. The deal also capped the number of gates at Love Field to 20, and the airport still only has 20 to this day. While the Wright Amendment restricted expansion out of Love Field, Southwest was still able to bolster its network out of other Texas cities in the 1980s, 1990s, and 2000s. Throughout the 1980s, the airline expanded north into cities like Tulsa, Oklahoma City, and Kansas City, and west to Phoenix, Las Vegas, Albuquerque, and California. The airline moved east in the late 1980s with flights to Nashville and into the Midwest with flights to Chicago Midway and Detroit. The airline also updated its livery in the 1980s. Southwest wanted to stand out in the skies and make its brand easily recognizable, so it wrapped its fuselage in desert gold and other warm colors. It received its first 737-300 jet in 1984, dubbed Spirit of Kitty Hawk. Southwest's flight attendant uniform was also updated by the 80s. Instead of hot pants and go-go boots, the airline allowed employees to wear real pants and skirts. In the 1990s, the network expanded further east to cities like Baltimore, Cleveland, Columbus, Tampa, Fort Lauderdale, Providence, Islip, and Raleigh-Durham. The airline also began its Pacific Northwest expansion with the acquisition of Morris Air in 1994. In 1991, the "Friends Fly Free" campaign was launched to battle the recession. The promotion allowed anyone 18 or older to bring a friend of any age free on their flight. It was so popular that Southwest offered the promotion for the next five years. In 1992, Southwest's most infamous marketing stunt occurred between Herb Kelleher and Kurt Herwald, chairman of Stevens Aviation. Southwest had been using the slogan "Just Plane Smart" in its ads, but Stevens Aviation sent a letter to Kelleher noting its similarity to its "Plane Smart" slogan. Instead of entering a legal battle over the phrase, a Steven Aviation executive suggested an arm-wrestling competition between Herwald and Kelleher. The victor would have full rights to the slogan. Kelleher marketed the event, dubbed the "Malice in Dallas," which received worldwide press coverage. "Smokin" Herb Kelleher and "Curtsy" Kurt Herwald put on a full show at the arena, which even earned a congratulatory note from President George Bush. At the turn of the century, Southwest revealed the livery that most people know today. The Canyon Blue color scheme debuted in January 2001. While many airlines opted to introduce fees for things like checked bags and flight changes to recuperate funds, Southwest refused. Instead, the airline launched its "bags fly free" campaign which allows customers two complimentary checked bags. Southwest has not gone back on the offer to this day. Throughout the 2000s, Southwest continued to focus on humor in its marketing. Its Wanna Get Away commercials proved successful, which promoted $49 one-way fares. By 2010, Southwest added "Transfarency" to its brand. The airline would not have any hidden fees and would remain customer-focused with an emphasis on Hospitality and Heart. The recognizable tri-color heart was added to its airplanes and workplace. In 2011, Southwest acquired AirTran Airways, which opened slots up out of Atlanta and gave it more network expansion opportunities in Mexico and the Caribbean. The two were fully integrated by 2014. Also in 2014, the company's livery got another new look, with a harder focus on the heart, a new logo, and a sleek new color scheme. In July 2014, the airline officially became international with its first flight to Oranjestad, Aruba. In the same month, Southwest also started service to Nassau, Bahamas, and Jamaica. The company's flight attendant uniform got an update in 2017, marking the first time in 20 years the airline changed the look. Womenswear included two dresses, one black with blue and red stripes and the other gray with red and black stripes. Menswear included a black blazer, a gray shirt and pants, and a red tie. In October 2017, Southwest became the launch customer for the Boeing 737 MAX 8 jet, with its first revenue flight occurring on October 1. However, the aircraft was grounded in 2019 after two fatal accidents involved the MAX. The airline did not fly the plane again until March 2021. In 2019, Southwest reached its goal of operating flights to Hawaii with its inaugural service from Oakland to Honolulu. In 2020, Southwest ended its 47-year profit streak when the coronavirus pandemic hit. Since last March, the airline has remained focused on the health and safety of its customers and employees. While the pandemic was a major blow to Southwest's operation, the carrier has continued to grow with 18 new cities announced in 2020. And, it is continuing to expand with new routes and destinations, thanks to CEO Bob Jordan, who took over in February 2022. Southwest returned to profitability taking advantage of the post-pandemic travel surge. With Southwest's immense size, it has a lot of systems at play to keep it running efficiently and on time. But, sometimes a nasty winter storm can derail even the best carrier's operations. But, Southwest suffered from more than just the weather in the holiday season of 2022. Captain Mike Santoro, vice president of the Southwest Airlines Pilots Association, told Insider the storm was the catalyst of the meltdown, but "outdated" scheduling software created the snowball. Southwest confirmed to Insider that its systems were unable to handle the "magnitude" of disruptions, which amounted to over 7,000 from Christmas to December 28 alone. The company acknowledged its software needs an update, with a spokesperson saying, "we are focused on making investments in technology upgrades to work toward that solution." Despite its operations issues in the holiday season of 2022, Southwest prides itself on being a customer- and employee-focused airline, bringing "LUV" to its operation, and keeping safety, hospitality, and customer service at the forefront of its mission. (LUV is its stock symbol.) According to financial information company BrightScope, Southwest has one of the highest-rated employee 401k plans. Meanwhile, J.D. Power reported in May that customers ranked Southwest as having the best economy product in North America. Haley Woods, founder of Girls LOVE Travel — a Facebook group with over one million members — told Insider that when her flight was canceled over the holiday week, she encountered the most "professional" and "upbeat" Southwest employees. "While this disruption might derail others from using SWA in the future — their customer kindness has reminded me that I will absolutely be looking past this and onward for future adventures," she said. Despite all of the challenges the carrier has faced recently, from operational meltdowns to activist investors, Southwest has vowed to push forward, offering its passengers flights with friendly service at affordable prices. FAQs

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Taylor Rains and Benjamin Zhang

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2024-07-25T16:30:17Z

Southwest Airlines became the US's largest domestic carrier by offering free bags and open seats — now it's upending one of its most well-known perks (1)

Southwest Airlines is ditching its signature unassigned seating policy.
Southwest, the US's largest domestic carrier, celebrates its customer- and employee-focused mission.
The airline found success using unconventional marketing and operational strategies.

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Southwest Airlines is the US's largest domestic carrier, serving over 100 destinations across the country.

The carrier has been in operation since 1971 and just celebrated its 53rd anniversary in June 2024.

Source: Southwest

One of the hallmarks of the Southwest experience is that the airline does not assign seats, instead, each passenger is provided a boarding group number. Once on board the aircraft, they are allowed to sit in any open seat.

In September, that's all going to change as the airline rolls out new seating policies that may largely match competitors' paid seat assignments and premium options.

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On Thursday, Southwest announced plans to scrap the unassigned seat policy and also sell premium seating options.

"The research is clear and indicates that 80% of Southwest Customers, and 86% of potential Customers, prefer an assigned seat," the airline said in a press announcement.

Source: Southwest is ditching its unassigned seat policy for the first time

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Southwest started as a small carrier based in Texas and only operated intra-state routes between three cities: San Antonio, Houston, and Dallas.

The airline, which was originally called Air Southwest, was dreamt up by Rollin King and Herb Kelleher on a co*cktail napkin in 1966.

King mapped the network he envisioned, making a triangle between the three key cities. He explained to Kelleher that operating solely in Texas would make the company exempt from the Civil Aeronautics Board's federal regulations, which controlled fares, routes, and schedules.

Source:Southwest

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From 1938 to 1978, the airline industry was federally regulated under the CAB as means to ensure major carriers like United and Pan Am were profitable. Fares were sky-high and only business travelers and deep-pocket leisure customers could afford the luxury of flight. The downside was that a lot of the time, planes flew half-empty.

Source: Smithsonian National Air and Space Museum

Because Air Southwest was certified under the state's aviation regulator, the Texas Aeronautics Commission, it was not bound to federal rules — a clever loophole King unapologetically copied from California carrier Pacific Southwest Airlines.

Source: Southwest

Advertisem*nt

The loophole allowed Air Southwest to fly freely in Texas and undercut competitors' fares, offering more customers the option to fly instead of drive in the large state. The business model was game-changing and a threat to legacy airlines.

Source:Southwest

In 1967, three airlines operating under federal rules, Braniff, Trans-Texas Airways, and Continental Airlines, took legal action against Air Southwest, saying it does not have the right to fly in Texas.

Source: Companies History

Advertisem*nt

The lawsuit took three years to resolve, and in 1970, the Texas Supreme Court ruled Air Southwest could fly in the state. The three airlines then took the case to the US Supreme Court, which declined to review it.

Source: Companies History

Air Southwest's right to fly in Texas was finalized in December of 1970. The carrier officially changed its name to Southwest Airlines in 1971 and commenced operations on June 18 of the same year.

Source: Companies History

Advertisem*nt

The carrier launched with two routes from Dallas Love Field to Houston and San Antonio using three new Boeing 737-200 aircraft. Flights between Houston and San Antonio commenced in November 1971.

Part of Southwest's immense success was due to Kelleher's focus on unconventional marketing and unique corporate culture.

Source: Southwest

Advertisem*nt

Kelleher used Pacific Southwest Airways' idea of "Long Legs And Short Nights" for hostesses, as they were called at the time, keeping with the theme of hiring attractive women to work Southwest flights.

Source: Companies History

The airline's first flight attendants were described as long-legged dancers and were handpicked by a committee that included the same individual who picked the hostess on Hugh Hefner's Playboy jet.

Source: Companies History

Advertisem*nt

Kelleher dressed the flight attendants in a bright orange top, orange hot pants, a white belt around the hips, and white side-laced go-go boots. He also pushed for a laid-back, casual inflight experience and only hired female hostesses who were fun, engaging, and had a sense of humor.

Source: Texas Monthly

Southwest also provided a winter version of the uniform, which included orange and white striped hot pants, a blazer, a white top, and an ascot.

Source: Texas Monthly

Kelleher continued the playboy theme by creating a "love" culture at Southwest. The carrier was called the "love airline,” automatic ticket dispensers were "love machines," inflight snacks were "love bites," and drinks were "love potions."

Source: Texas Monthly

The airline also crafted its own special inflight co*cktails, which were free for passengers. A few were appropriately named Kentucky Matchmaker, the Pucker Potion, and the Lucky Lindsay.

Source: Texas Monthly

Advertisem*nt

He even went on to create ads centered around humor and attractive women. In the context of the 1970s, using attractive female flight attendants to gain customers was an industry norm.

Source: Texas Monthly

In 1972, Southwest made a game-changing, innovative marketing move. The company introduced the "two-tier" fare system, which established two separate price points aimed at different types of travelers.

Source: Southwest

Advertisem*nt

The fares were the regularly priced "Executive Class Service" at $26 one-way and the "Pleasure Class" at $13 one-way or $25 roundtrip. "Pleasure Class" fares were available after 6:59 p.m. on weekdays and all day Saturday and Sunday.

Source: Southwest

The two-tier structure was a wild success, with Southwest increasing its average passenger load from 17 before the move to 75 after.

Source: Southwest

Advertisem*nt

In 1973, the company launched a $13 one-way "half-fare" sale on all flights to San Antonio. Southwest's rival, Braniff, responded with its own "get acquainted sale" with $13 fares between Dallas and Houston. This was the start of the $13 Fare War.

Source: Southwest

Southwest knew $13 fares on its only profitable route would run it straight into bankruptcy, so King quickly came up with a marketing campaign that would put Southwest on top. "Nobody's going to shoot Southwest out of the sky for a lousy $13," read the bold ad.

Source: Southwest

Advertisem*nt

Southwest matched Braniff's fare between Dallas and Houston, which was met with praise and respect from customers. As part of the campaign, the airline also offered a free fifth of liquor for passengers who paid the full $26 fare.

Source: Southwest

Business travelers loved the promotion, and lucky for Southwest, three-fourths of its customers opted to pay full price and pocket the free booze. The airline soon became a fan favorite among many Texas business communities, and Braniff was fuming.

Source: Southwest

Advertisem*nt

By the end of 1973, Southwest finally turned its first profit and would continue to profit for 47 years until the coronavirus pandemic ended the streak. Meanwhile, Braniff lost the battle and the war, ceasing operations in 1982.

Source: Southwest, Braniff International Airways Boutique

Southwest's early challenges did not end with Braniff. In 1964, the Civil Aeronautics Board demanded the city of Dallas build an airport to serve the entire Dallas/Fort Worth area. In 1968, every air carrier operating out of Love Field agreed to move to DFW when it opened in 1974.

Source: Encyclopedia.com

Advertisem*nt

However, Southwest was not a part of that agreement and filed suit that it would not move from Love Field when the new airport opened. The airline claimed there was no legal reason to end commercial traffic at Love Field and that the company made no written agreement to move its operations.

Source: Encyclopedia.com

The city and the DFW Airport Board sued Southwest, saying the CAB rule applied to the airline even if it was made before Southwest was officially founded. However, Southwest argued that its intra-state flights fell outside the jurisdiction of the CAB, so it did not have to leave Love Field.

Source: Encyclopedia.com

Advertisem*nt

A federal district court agreed with Southwest and ruled that it could operate out of the airport as long as it remained open. When DFW opened in 1974, every airline except Southwest left Love Field.

Source: Encyclopedia.com

Southwest continued to grow through the 70s, acquiring 10 aircraft and carrying its five-millionth customer by the end of 1977.

Source: Southwest

Advertisem*nt

By 1976, Southwest Airlines had been profitable for three years and proven that government regulation was not necessary for airlines to be successful. Deregulation was a top priority for Jimmy Carter's administration, and it passed the Airline Deregulation Act in 1978, effectively abolishing the Civil Aeronautics Board.

Source: National Review

Finally, Southwest Airlines was free to operate interstate flights and the airline began to thrive. Meanwhile, major carriers like Eastern Airlines, Trans World Airlines, and Pan Am spread themselves too thin as they tried to rapidly expand.

Source: US Centennial of Flight Commission

Advertisem*nt

Unlike major carriers, Southwest maintained a simple strategy for success after deregulation, like only operating one aircraft type, cleaning the aircraft before landing to allow for a quicker turn, and focusing on humor in marketing.

Source: USA Today

And its strategy worked. Southwest was prospering while other airlines like Pan Am and TWA collapsed. However, it was not long before the Wright Amendment put another wrench in the company's plans.

Advertisem*nt

After deregulation, Southwest wanted to commence interstate flights from Love Field to New Orleans in 1979, but officials at DFW airport feared the increased traffic would hurt the airport financially. So, US Congressman Jim Wright drafted, sponsored, and helped pass a bill restricting passenger traffic at Love Field.

Source: Southwest

The law, known as the Wright Amendment, was signed in early 1980 and amended the International Air Transportation Act of 1979. It restricted flying out of Love Field to cities in Texas and the surrounding states of Louisiana, Oklahoma, Arkansas, and New Mexico. The law was meant to keep Southwest from expanding operations out of Dallas.

Source: The Dallas Morning News

Advertisem*nt

It only applied to carriers that operated aircraft with more than 56 seats, which Southwest did. So, the airline had to rely on short-haul flights in the five-state area to bolster Love Field operations.

Source: The Dallas Morning News

In 1997, Kansas, Alabama, and Mississippi were added to the list of reachable states. In 2005, Missouri was also added.

Source: The Dallas Morning News

Advertisem*nt

However, in 2004, Southwest CEO Gary Kelly launched efforts to repeal the Wright Amendment, using the slogans "Set Love Free" and "Wright is Wrong" in the campaign.

Source: Southwest

In 2006, an agreement was made between Southwest, American Airlines, Dallas, and Forth Worth to phase out the law. They agreed that in eight years, the amendment would be gone, but until then, carriers could fly to any US destination out of Love Field as long as at least one stop was made in any of the nine states under the Wright Amendment.

Source: Southwest, The Dallas Morning News

Advertisem*nt

On October 13, 2014, at exactly 12:01 a.m., a countdown clock at Southwest's Headquarters in Dallas hit zero, officially ending the Wright Amendment. A few minutes after, the airline's first scheduled flight outside of the nine Wright states took off from Love Field to Denver.

Source: Southwest

The deal also capped the number of gates at Love Field to 20, and the airport still only has 20 to this day.

Source: The Dallas Morning News

Advertisem*nt

While the Wright Amendment restricted expansion out of Love Field, Southwest was still able to bolster its network out of other Texas cities in the 1980s, 1990s, and 2000s.

Throughout the 1980s, the airline expanded north into cities like Tulsa, Oklahoma City, and Kansas City, and west to Phoenix, Las Vegas, Albuquerque, and California. The airline moved east in the late 1980s with flights to Nashville and into the Midwest with flights to Chicago Midway and Detroit.

Source: Southwest

Advertisem*nt

The airline also updated its livery in the 1980s. Southwest wanted to stand out in the skies and make its brand easily recognizable, so it wrapped its fuselage in desert gold and other warm colors. It received its first 737-300 jet in 1984, dubbed Spirit of Kitty Hawk.

Source: Southwest

Southwest's flight attendant uniform was also updated by the 80s. Instead of hot pants and go-go boots, the airline allowed employees to wear real pants and skirts.

Source: Racked

Advertisem*nt

In the 1990s, the network expanded further east to cities like Baltimore, Cleveland, Columbus, Tampa, Fort Lauderdale, Providence, Islip, and Raleigh-Durham. The airline also began its Pacific Northwest expansion with the acquisition of Morris Air in 1994.

Source: Southwest

In 1991, the "Friends Fly Free" campaign was launched to battle the recession. The promotion allowed anyone 18 or older to bring a friend of any age free on their flight. It was so popular that Southwest offered the promotion for the next five years.

Source: Southwest

Advertisem*nt

In 1992, Southwest's most infamous marketing stunt occurred between Herb Kelleher and Kurt Herwald, chairman of Stevens Aviation.

Source: Southwest

Southwest had been using the slogan "Just Plane Smart" in its ads, but Stevens Aviation sent a letter to Kelleher noting its similarity to its "Plane Smart" slogan.

Source: Southwest

Advertisem*nt

Instead of entering a legal battle over the phrase, a Steven Aviation executive suggested an arm-wrestling competition between Herwald and Kelleher. The victor would have full rights to the slogan.

Source: Southwest

Kelleher marketed the event, dubbed the "Malice in Dallas," which received worldwide press coverage. "Smokin" Herb Kelleher and "Curtsy" Kurt Herwald put on a full show at the arena, which even earned a congratulatory note from President George Bush.

Source: Southwest

Advertisem*nt

At the turn of the century, Southwest revealed the livery that most people know today. The Canyon Blue color scheme debuted in January 2001.

Source: Southwest

While many airlines opted to introduce fees for things like checked bags and flight changes to recuperate funds, Southwest refused. Instead, the airline launched its "bags fly free" campaign which allows customers two complimentary checked bags. Southwest has not gone back on the offer to this day.

Source: Southwest

Advertisem*nt

Throughout the 2000s, Southwest continued to focus on humor in its marketing. Its Wanna Get Away commercials proved successful, which promoted $49 one-way fares.

Source: Southwest

By 2010, Southwest added "Transfarency" to its brand. The airline would not have any hidden fees and would remain customer-focused with an emphasis on Hospitality and Heart. The recognizable tri-color heart was added to its airplanes and workplace.

Source: Southwest

Advertisem*nt

In 2011, Southwest acquired AirTran Airways, which opened slots up out of Atlanta and gave it more network expansion opportunities in Mexico and the Caribbean. The two were fully integrated by 2014.

Source: Southwest

Also in 2014, the company's livery got another new look, with a harder focus on the heart, a new logo, and a sleek new color scheme.

Source: Southwest

Advertisem*nt

In July 2014, the airline officially became international with its first flight to Oranjestad, Aruba. In the same month, Southwest also started service to Nassau, Bahamas, and Jamaica.

Source: Southwest

The company's flight attendant uniform got an update in 2017, marking the first time in 20 years the airline changed the look. Womenswear included two dresses, one black with blue and red stripes and the other gray with red and black stripes. Menswear included a black blazer, a gray shirt and pants, and a red tie.

Source: Travel + Leisure

Advertisem*nt

In October 2017, Southwest became the launch customer for the Boeing 737 MAX 8 jet, with its first revenue flight occurring on October 1. However, the aircraft was grounded in 2019 after two fatal accidents involved the MAX. The airline did not fly the plane again until March 2021.

Source: Southwest

In 2019, Southwest reached its goal of operating flights to Hawaii with its inaugural service from Oakland to Honolulu.

Source: Southwest

Advertisem*nt

In 2020, Southwest ended its 47-year profit streak when the coronavirus pandemic hit. Since last March, the airline has remained focused on the health and safety of its customers and employees.

Source: CNN

While the pandemic was a major blow to Southwest's operation, the carrier has continued to grow with 18 new cities announced in 2020.

Source: Southwest

Advertisem*nt

And, it is continuing to expand with new routes and destinations, thanks to CEO Bob Jordan, who took over in February 2022.

Bob Jordan is Southwest Airlines' new CEO. Experts outline a 100-day plan for keeping customers, employees, and investors happy

Southwest returned to profitability taking advantage of the post-pandemic travel surge.

Source: Southwest

Advertisem*nt

With Southwest's immense size, it has a lot of systems at play to keep it running efficiently and on time. But, sometimes a nasty winter storm can derail even the best carrier's operations.

But, Southwest suffered from more than just the weather in the holiday season of 2022.

Advertisem*nt

Captain Mike Santoro, vice president of the Southwest Airlines Pilots Association, told Insider the storm was the catalyst of the meltdown, but "outdated" scheduling software created the snowball.

Frustrated Southwest pilot and union rep says the airline's flight meltdown was caused by outdated scheduling software

Southwest confirmed to Insider that its systems were unable to handle the "magnitude" of disruptions, which amounted to over 7,000 from Christmas to December 28 alone.

Source: FlightAware

Advertisem*nt

The company acknowledged its software needs an update, with a spokesperson saying, "we are focused on making investments in technology upgrades to work toward that solution."

Despite its operations issues in the holiday season of 2022, Southwest prides itself on being a customer- and employee-focused airline, bringing "LUV" to its operation, and keeping safety, hospitality, and customer service at the forefront of its mission. (LUV is its stock symbol.)

Advertisem*nt

According to financial information company BrightScope, Southwest has one of the highest-rated employee 401k plans. Meanwhile, J.D. Power reported in May that customers ranked Southwest as having the best economy product in North America.

Source: BrightScope, Delta has the best first class, and Southwest has the best economy seats — see how airlines rank for customer satisfaction

Haley Woods, founder of Girls LOVE Travel — a Facebook group with over one million members — told Insider that when her flight was canceled over the holiday week, she encountered the most "professional" and "upbeat" Southwest employees.

Advertisem*nt

"While this disruption might derail others from using SWA in the future — their customer kindness has reminded me that I will absolutely be looking past this and onward for future adventures," she said.

Despite all of the challenges the carrier has faced recently, from operational meltdowns to activist investors, Southwest has vowed to push forward, offering its passengers flights with friendly service at affordable prices.

FAQs

What is one rare advantage that Southwest Airlines has created and which has become a competitive advantage for the company? ›

While Southwest Airlines' entire business model is important, arguably the most valuable competitive advantage has been its deep focus on hiring the right people. Southwest prides itself on being a people-oriented airline that operates with friendly and approachable employees and team members.

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How did Southwest Airlines become successful? ›

The Texas Triangle: A Smart Start 📐

Southwest began by offering flights between Dallas, Houston, and San Antonio, capitalizing on the booming population in Texas. This strategic move allowed them to grow within the state before airline deregulation opened up new opportunities.

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What is Southwest Airlines known for? ›

Southwest^® is known for its Hospitality and legendary Culture, where People come first.

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What differentiates Southwest from any other airline? ›

What makes Southwest different from other Airlines? One of the primary differences between Southwest Airlines and other airlines is its point-to-point schedule. While many airlines utilize hub airports, Southwest flies to many destinations directly which helps to reduce travel time and improve customer satisfaction.

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What is the winning strategy of Southwest Airlines? ›

Outcome: Southwest achieved consistent profitability, high customer satisfaction, and became a major player in the airline industry. Southwest's emphasis on efficient operations was critical to its success. The airline implemented several innovative practices to minimize costs and maximize aircraft utilization.

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How does American Airlines have a competitive advantage? ›

Customer Loyalty Programs. American Airlines has numerous customer loyalty programs that give their customers significant value. These programs, namely the AAdvantage program, are designed to entice customers to become repeat fliers and drum up more business out of them over time.

Is Southwest still the best airline? ›

Southwest Airlines ranks highest in customer satisfaction in the economy/basic economy segment for a third consecutive year, with a score of 685. Delta Air Lines (651) ranks second and Allegiant Air (633) ranks third.

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What is the reputation of Southwest Airlines? ›

This airline is rated amount the top 5 airlines on Flight-Report. Travellers rate it 7.5/10 on average, indicating good service. This rating is superior the average of other carriers.

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What is it that Southwest Airlines does that drives their successful strategy? ›

Southwest leverages a unique legacy and mission to serve communities around the world including harnessing the power of its People and Purpose to put communities at the Heart of its success.

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Why is Southwest so loved? ›

Re: What do you love about Southwest Airlines? Fun staff, companion pass, no change fees, and two free checked bags! Home airport MDW, frequent visitor to MCO to see the mouse.

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Who is Southwest's biggest competitor? ›

Competitor comparison

Delta Air Lines Inc Headquarters. 103,000. $58.0B.
United Airlines Holdings Inc Headquarters. 104,500. $53.7B.
American Airlines Group Inc Headquarters. 137,400. $52.8B.
Alaska Air Group Inc Headquarters. 23,178. $10.4B.

What is unique about the Southwest? ›

The Southwest has a special place in the American imagination – one filled with canyon lands, cacti, roadrunners, perpetual desert heat, a glaring sun, and the unfolding of history in places like Tombstone and Santa Fe.

Why is Southwest so successful? ›

Southwest Airlines has a unique business model that is based on keeping costs low. They do this by flying only one type of plane, which makes maintenance and training easier, and by using a point-to-point system instead of a hub-and-spoke model, which reduces the need for expensive airport infrastructure.

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What is disadvantage of Southwest Airlines? ›

Customer satisfaction is high, flexibility to change or cancel flights has always been exceptional, and free checked bags on every flight is a big plus. As for the drawbacks, no seat assignments or first class perks, plus a mixed reliability rating, are worth factoring in.

What does Southwest offer that other Airlines don t? ›

Sw is famous as the only US airlines with no preassigned seat number (much like Amtrak coach seats) and you can choose any unoccupied seat. SW is the only airline who has no separate cabin for first class or business class in any of their aircrafts.

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What is a unique competitive advantage? ›

Your competitive advantage is the combination of marketing elements that sets your business apart. It's about the unique benefit customers get when they do business with you. Practical examples include: free home delivery. a money-back guarantee.

What is the main competitive advantage for Airlines? ›

One of the most obvious sources of competitive advantage for airlines in emerging markets is cost efficiency, which means being able to offer lower fares, higher margins, and better returns on investment than competitors.

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What are the advantages of Southwest A list? ›

A-List status benefits

Priority boarding. You and everyone on your reservation get an earlier boarding position.
25% earning bonus. ...
Same-day change/standby (taxes and fees may apply) ...
Priority Lane and Express Lane. ...
Dedicated A-List member phone line.

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What competitive advantages might an airline gain by joining the Star Alliance? ›

There are three key benefits airlines get when joining a global alliance.

Increased market coverage. Member carriers can expand their networks without investing in new aircraft. ...
Lower operational costs. ...
Customer satisfaction.

Mar 28, 2023

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