Alerts Sign-up
Southwest Airlines, one of the leading airlines in the United States, has come a long way since its humble beginnings. The airline now operates more than 800 Boeing 737 jets, recording nearly $7 billion in operating revenue last quarter with $67 million in net profits. However, back in 1972, the airline teetered on the brink of bankruptcy with only $143 in its account.
The airline's revival is largely attributed to a strategic change – a remarkable 10-minute turnaround time for their aircraft. Presently, the average turnaround time is approximately 49 minutes, with plans to reduce it by an additional five minutes. Initially founded in 1966 by Herbert Kelleher and Rollin King, the airline, then known as Air Southwest Co., aimed to capitalize on intra-state routes in Texas, avoiding stringent federal regulations.
After winning a legal battle against airlines such as Braniff, Trans-Texas, and Continental, Southwest commenced operations, though with financial difficulties. A significant move by the management was selling one of its four Boeing 737s for $500,000, which stabilized the company financially. The need for maintaining the existing flight schedule led to Vice President of Operations Bill Franklin proposing the ambitious 10-minute turnaround time.
