Who is the owner of Southwest Airlines?

Southwest Airlines Ownership

Southwest Airlines is one of the largest low-cost airlines in the world, operating in the United States, Mexico, and the Caribbean. It has a reputation for providing affordable air travel to its customers while maintaining high-quality service. The ownership of Southwest Airlines is an essential aspect of its success, and it has gone through various changes since its inception. This article provides an overview of the ownership of Southwest Airlines, its history, key figures, and the impact of ownership on its operations.

Southwest Airlines: A Brief Overview

Southwest Airlines was founded in 1967 in Texas by Herb Kelleher and Rollin King. It began operating in 1971 with three planes and served three cities. Since then, it has grown to become the world’s largest low-cost carrier, with a fleet of over 700 planes that serve over 100 destinations. Southwest Airlines is known for its innovative business model, which includes low fares, no-frills service, and a point-to-point routing system that reduces costs and improves efficiency.

History of Southwest Airlines Ownership

Southwest Airlines has had a unique ownership structure since its inception. It started as a partnership between Herb Kelleher and Rollin King, who drew the initial route map on a napkin. However, the ownership of the company has undergone various changes over the years. In 1971, the airline became a publicly-traded company, and in 1988, Kelleher became Chairman of the Board and CEO. In 2001, Kelleher stepped down as CEO, but he remained the Chairman of the Board until 2008. In 2019, Gary Kelly became the Chairman of the Board, and Kelleher passed away later that year.

Herb Kelleher: The Founder of Southwest Airlines

Herb Kelleher was the co-founder of Southwest Airlines and played an instrumental role in its growth and success. He was known for his unconventional leadership style and his commitment to providing affordable air travel to the masses. Kelleher served as CEO of Southwest Airlines from 1981 to 2001 and was widely regarded as a visionary leader who transformed the airline industry. He passed away in 2019, leaving behind a legacy of innovation and excellence.

Gary Kelly: The Current CEO of Southwest Airlines

Gary Kelly is the current CEO of Southwest Airlines and has been with the company since 1986. He has held various positions within the company, including Chief Financial Officer and Vice President of Finance. Kelly became CEO in 2004 and has been instrumental in leading the company through various challenges, including the 2008 financial crisis and the COVID-19 pandemic. He is known for his strategic vision, customer focus, and commitment to the company’s employees.

Major Shareholders of Southwest Airlines

Southwest Airlines is a publicly-traded company, and its major shareholders include institutional investors, mutual funds, and individual investors. Some of the largest shareholders include The Vanguard Group, BlackRock, State Street Corporation, and Fidelity Investments. However, the company’s ownership structure ensures that no single entity or individual can control the company’s operations.

Employee Ownership in Southwest Airlines

Employee ownership is an important aspect of Southwest Airlines’ ownership structure. The company has a profit-sharing plan that distributes a portion of the company’s profits to its employees. This plan has been in place since the company’s inception and is one of the reasons why Southwest Airlines has a reputation for treating its employees well. The company also has a unique culture that values teamwork, innovation, and accountability, which has contributed to its success.

Other Key Figures in Southwest Airlines Ownership

Apart from Herb Kelleher and Gary Kelly, there have been other key figures in Southwest Airlines’ ownership. These include Rollin King, who co-founded the company with Kelleher, and Colleen Barrett, who served as President and COO of the company from 2001 to 2008. Both King and Barrett played instrumental roles in the company’s growth and success.

The Impact of Ownership on Southwest Airlines

The ownership of Southwest Airlines has had a significant impact on its operations and success. The company’s unique ownership structure, which includes employee ownership and a commitment to innovation and excellence, has been instrumental in its growth and profitability. The company’s culture, which values teamwork, accountability, and customer focus, has also been a key factor in its success.

Southwest Airlines’ Financial Performance

Southwest Airlines has been a consistently profitable company since its inception. It has maintained a strong balance sheet and has been able to weather various economic challenges, including the 2008 financial crisis and the COVID-19 pandemic. The company’s financial performance is a testament to its innovative business model, strategic vision, and commitment to excellence.

Conclusion: The Future of Southwest Airlines Ownership

The ownership of Southwest Airlines has played a critical role in its growth and success. The company’s commitment to employee ownership, innovation, and excellence has been instrumental in its profitability and market leadership. As the company looks to the future, it will continue to prioritize these values and build on its legacy of innovation and excellence.

References and Further Reading

"Southwest Airlines Company Profile." Yahoo Finance. https://finance.yahoo.com/quote/LUV/profile?p=LUV

"Southwest Airlines: A Brief History." Investopedia.
"Herb Kelleher, Southwest Airlines Founder, Dies at 87." The New York Times.
"Southwest Airlines: The Culture Is the Key." Forbes. https://www.forbes.com/sites/johnkotter/2018/06/04/southwest-airlines-the-culture-is-the-key/?sh=7e4c4e2e7b8d