Herb Kelleher was the Southwest Airlines CEO best known for building its low-cost model and employee-centered culture. A lawyer and co-founder, he helped establish Air Southwest in 1967; the airline began operating as Southwest Airlines in 1971.
Kelleher’s strategy emphasized low fares, simple operations, point-to-point routes, quick aircraft turnarounds, and a largely standardized Boeing 737 fleet. Southwest also used secondary airports such as Dallas Love Field and Chicago Midway, helping control costs and avoid the traditional hub-and-spoke system.
The airline’s culture was equally distinctive. Kelleher encouraged humor, informality, teamwork, and strong employee loyalty, believing that employees who were treated well would deliver better service. Southwest became famous for flight attendants’ playful announcements and for taking work seriously without taking itself too seriously.
Gary Kelly later led Southwest, while Bob Jordan became CEO in 2022. They are modern Southwest CEOs, but Kelleher is the canonical answer for the company’s original low-cost formula and employee culture.