Founders · Apr 9Herb Kelleher: Founder of Southwest Airlines
It sued to block Southwest, copied its $13 fare, and lost the whiskey war as 76% of passengers chose Southwest's $26 fare with a free bottle. It dropped Dallas to Houston Hobby two years later and was indicted for conspiring to put Southwest out of business.
Tips
- Kelleher knew Southwest competed with ground transportation, not other airlines, and kept fares low▶ 28:20Southwest charged $15 against Braniff's $62 on Dallas to San Antonio.
- Kelleher fought Braniff's fare cut by telling customers the truth and offering free whiskey▶ 24:5476% of passengers paid the $26 fare and took the bottle, and two years later Braniff dropped the Dallas to Houston Hobby route.
- Kelleher fought four and a half years of lawsuits and paid court costs himself to get Southwest airborne▶ 12:58Braniff and Texas International were later indicted for conspiring to put Southwest out of business and pleaded no contest.
