Southwest Airlines Co. is a major United States airline. It is the world’s largest low-fare carrier, in terms of the number of passengers carried each week. Southwest has headquarters in Dallas.
Southwest Airlines was founded as Air Southwest Co. in 1967 in Texas by Rollin King and Herb Kelleher. During a meeting with Kelleher, King expressed his ideas for a low-cost, “no frills” airline serving the three largest cities in Texas—Dallas, San Antonio, and Houston. Service between these cities at that time was provided by Braniff Airways and Trans-Texas Airways. However, the routes were usually part of a longer flight. Air Southwest’s competitors delayed the new airline’s entry into the market for several years with legal challenges. In 1971, Air Southwest changed its name to Southwest Airlines Co. and began operating as a low-cost alternative airline within the state of Texas. The carrier started out with three jetliners serving the three cities.
In 1973, Southwest became involved in a fare war when the company offered to match Braniff’s $13 fare on Southwest’s only profitable route, from Dallas to Houston. The battle turned into one of the most widely publicized conflicts in the history of the airline industry. Southwest emerged victorious when it still managed to make a profit on the route.
Southwest avoided the disadvantages that most new airlines experience by not using the main hubs of the major carriers. Major carriers had developed hub-and-spoke systems in which many flights connect to a central airport. Instead, Southwest used mainly a point-to-point system, in which flights follow a direct route from city to city without connecting through a hub. In addition, in large cities, Southwest operated out of older and smaller airports. It used Dallas Love Field instead of Dallas/Fort Worth International Airport, Houston’s William P. Hobby Airport instead of George Bush Intercontinental Airport, and Chicago’s Midway International Airport instead of O’Hare International Airport. In other cities, Southwest operated out of the main airport terminal.
By 1989, Southwest had become a major airline, exceeding the billion-dollar mark in revenue. By the 2010’s, the airline had expanded its routes to about 100 cities in most U.S. states, Puerto Rico, and the District of Columbia. Southwest’s growth coincided with the growth of the internet. It was one of the first airlines to have its own website. In 2011, Southwest acquired its low-cost rival, AirTran Airways, whose headquarters were in Orlando, Florida. Southwest began its first international service with several Caribbean destinations in 2014.
In 2015, Southwest agreed to pay a record $1.6-million fine for violating federal rules against stranding passengers during lengthy runway delays. The fine is the largest civil penalty to date levied against an airline for violating the so-called tarmac delay rules. The U.S. Department of Transportation adopted rules in 2009 that prohibit U.S. airlines from holding passengers on a runway for more than three hours without the option of getting off the plane. United Airlines was fined $1.1 million in 2012 for violating the rules.
