History of Southwest Airlines facts for kids
Southwest Airlines started in 1967 to fly within Texas. At first, it faced many challenges. It was even stopped from flying for a while. Also, long flights from its main base, Dallas Love Field, were limited by law for many years. But Southwest found new ways to do business. It grew into one of the biggest airlines in the United States. It is also one of the largest low-cost airlines in the world. This means it tries to offer cheaper flights.
Contents
How Southwest Airlines Began
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Southwest Airlines began on March 15, 1967. It was first called Air Southwest Co. Lamar Muse, Rollin King, and Herb Kelleher started it. Their goal was to fly only within Texas.
Herb Kelleher believed that by staying in Texas, federal rules would not apply. This meant the airline could offer lower prices than other airlines. Three other airlines, Braniff, Trans-Texas Airways, and Continental Airlines, sued Air Southwest. The legal fight lasted three years. In 1970, the Texas Supreme Court said Air Southwest could fly in Texas. The U.S. Supreme Court agreed in December 1970. This proved Kelleher's idea about federal rules was right.
On March 29, 1971, Air Southwest Co. changed its name to Southwest Airlines Co. Its main office was in Dallas. Southwest started flying passengers on June 18, 1971. Its first flights were between Dallas Love Field and Houston Intercontinental Airport (IAH). It also flew between Dallas Love Field and San Antonio. They used three Boeing 737-200 planes. Later, they added flights between Houston Hobby Airport (HOU) and Dallas Love Field, and between Houston Hobby and San Antonio.
Herb Kelleher, a founder of Southwest Airlines, learned from Pacific Southwest Airlines (PSA) in California. He used many of PSA's ideas for Southwest's way of doing things. Early flights even had flight attendants chosen by the same person who picked hostesses for Hugh Hefner's jet. These first flight attendants were described as dancers and cheerleaders with "unique personalities."
In 1971, The New York Times wrote that Southwest's president, Lamar Muse, openly said Southwest copied PSA's successful ideas. Muse and other Southwest leaders visited PSA to learn how they operated. PSA even helped them with training. Muse later wrote that creating their airline's rule books was mostly "cut and paste." People said Southwest copied PSA so much it was "almost a photocopy."
Southwest lost money in 1971 and 1972. They sold one of their four 737s to Frontier Airlines to pay bills. Southwest kept flying a schedule for four planes but used only three. This led to the "ten minute turn," where planes were quickly ready for the next flight. This fast turnaround became a standard for many years. Southwest started making a profit in 1973 and kept doing so until 2020.
Flying from Love Field was key to Southwest's business. It was close to downtown Dallas. But Dallas and Fort Worth had argued for years about airports. In 1964, the Civil Aeronautics Board (CAB) told them to build a new airport together. They agreed to build Dallas/Fort Worth International Airport (DFW). They also agreed that existing airlines at Love Field and Greater Southwest International Airport (GSW) would move to DFW. Southwest wanted to stay at Love Field. This went against the agreement to close Love Field to big airlines. Southwest said there was no legal reason to close the airport to commercial flights. They also said they didn't sign the agreement, so it didn't apply to them. Dallas, Fort Worth, and the DFW Airport Board sued Southwest. But in 1973, a court said Southwest's flights within Texas were outside the CAB's power. The court ruled that Dallas could not stop Southwest from flying from Love Field as long as the airport was open.
What Was the Wright Amendment?
The Wright Amendment was a federal law from 1979. It controlled flights from Dallas Love Field. Many of its rules were lifted in late 2014. The limits started to ease in 1997 and 2005. In 2006, the main part of the law was removed. But some limits stayed until 2014. It also added a limit on how many gates an airline could use.
The Wright Amendment came about because Southwest refused to move to DFW. After a law called the Airline Deregulation Act passed in 1978, Southwest planned to start flights to other states in 1979. They wanted to fly to New Orleans. Federal officials quickly approved this. But Texas officials, especially from Fort Worth, worried. They thought more flights at Love Field could take business from DFW Airport. This could hurt DFW financially. So, Jim Wright, a U.S. Representative from Fort Worth, helped pass a new law. This law limited passenger flights from Love Field in these ways:
- Big planes could only fly to airports in Texas and its four nearby states: Arkansas, Louisiana, New Mexico, and Oklahoma. At the time, all Southwest flights were within this area. So, the law did not affect Southwest right away.
- Flights to other states were only allowed on planes with 56 seats or fewer. This was to stop big passenger planes from flying beyond the five-state area.
- Airlines could not offer connecting flights or tickets that went beyond the five-state region.
How Southwest Expanded Its Network
The Wright Amendment stopped major airlines from flying from Love Field. But Southwest quickly grew its flights from Love Field. It offered much lower fares than bigger airlines. It flew to smaller airports in the five-state region that other airlines didn't serve well.
Southwest only flew to Dallas Love Field, Houston (IAH, then HOU), and San Antonio until 1975. Then it added Harlingen. In 1979, Southwest flew to eleven Texas cities. It also added its first flight outside Texas: Houston to New Orleans. In 1980, Southwest expanded north to Tulsa and Oklahoma City. It went west to Albuquerque. In 1982, it flew north to Kansas City and west to Phoenix, Las Vegas, and California.
Flights to Denver started in 1983 (and stopped in 1986). To Little Rock in 1984. To St. Louis and Chicago Midway in 1985. To Nashville in 1986. To Detroit Metro and Birmingham in 1987. Expansion to the east started again in 1992 with Cleveland and Columbus. Then Baltimore in 1993. The Pacific Northwest began in 1994 after Southwest bought Morris Air. Tampa and Fort Lauderdale started in January 1996. East to Providence in 1997, Manchester in 1998, and Islip and Raleigh-Durham in 1999.
Southwest's only flight within California was San Francisco to San Diego. Then it started Oakland in 1989. In the next few years, its flights on the West Coast grew a lot.
Southwest in the 1980s and 1990s
Southwest hired its first Black pilot, Louis Freeman, in 1980. In 1992, he became the first Black chief pilot for a major U.S. airline.
Southwest's Houston Pilot Base opened on June 1, 1984. It was the first crew base outside Dallas.
On November 30, 1984, Southwest received its first Boeing 737-300. Southwest was one of the first airlines to order this plane. In May 2012, it was the biggest user of this type. The first 737-300 was named "Kitty Hawk."
In 1985, Dallas, Fort Worth, and DFW Airport tried to stop Continental Airlines from flying from Love Field. They said Continental was offering connecting tickets, which the Wright Amendment banned. Southwest did not offer these. But the United States Department of Transportation (USDOT) ruled that an airline could sell separate tickets for connecting flights. This was allowed as long as the airline didn't openly advertise or push for these connections. This rule helped Southwest. Smart passengers could now get around the Wright Amendment. They could fly from Dallas to a nearby state, change planes, and then fly on a separate ticket to any city Southwest served.
Southwest bought Muse Air for $60.5 million in 1985. Muse Air was about to fail. After buying it, Southwest renamed MuseAir to TranStar Airlines. TranStar became a part of Southwest but flew as its own airline. Southwest later sold TranStar's assets in August 1987.
Southwest moved into its current main office in 1990. The airline had been in other buildings near Love Field. The new main office cost $15 million in 1990. In early 1995, the building got an extra 60,000 square feet of space. By 2006, about 1,400 employees worked in the three-story building.
In 1990, the airline registered its planes in Houston. This allowed it to pay aircraft taxes in Houston, even though its main office was in Dallas. Texas law let the airline choose where to register its planes.
Southwest bought Morris Air in 1993 for $134 million. Morris Air was based in Salt Lake City, Utah. Southwest took over Morris Air's planes and routes. This included new destinations in the Pacific Northwest that Southwest didn't serve before. One of Morris Air's founders, David Neeleman, worked for Southwest for a short time. He then left to start WestJet and later JetBlue Airways, which became a competitor.
On March 16, 1995, Southwest launched its first website. It was called the "Southwest Airlines Home Gate." Passengers could see flight times, a map of routes, and company info at Iflyswa.com. Southwest.com became the top airline website for online sales. In 2006, 70% of flight bookings and 73% of money earned came from southwest.com. By June 2007, 69% of Southwest passengers checked in for their flights online or at a kiosk.
Southwest Airlines became known for "thinking outside the box." It was good at managing risks. This included using fuel hedging. This helped protect the airline from big changes in fuel prices. Some experts said Southwest was just betting on energy prices. But Southwest got good press and a financial boost from its energy trading skills.
In March 1996, Southwest began building a 300,000 square foot addition to its main office. This cost $30 million. The airline also leased land from Dallas to build a new pilot training center and more parking. A $9.8 million pilot training center was built. The old training center was removed, and the main office expanded. By the end of 1997, these improvements at Love Field were expected to cost Southwest $47 million.
In 1997, Southwest and Icelandair made agreements. They allowed for shared fares and coordinated schedules. Passengers could transfer luggage between the two airlines at Baltimore. This connected passengers between U.S. cities and European cities. Their frequent flyer programs were not part of this deal.
Southwest in the 2000s
Ending the Wright Amendment Rules
In 1996, a new airline called Legend Airlines wanted to fly long-distance from Love Field. They planned to use planes with 56 seats. This was the most allowed under the Wright Amendment. But the USDOT said the 56-seat rule was about the plane's original design, not how many seats were actually in it. So, Legend tried to change the law. By July 1997, Legend got help from Senator Richard Shelby. In October 1997, the United States Senate passed a bill. It included the Shelby Amendment. This allowed unlimited flights to Alabama, Kansas, and Mississippi. It also allowed nationwide flights using larger planes with 56 seats. Southwest did not add flights to these new states. Other airlines, like Continental Express, started flying from Love Field.
On April 5, 2000, Legend Airlines started the first 56-seat long-distance flights from Love Field. These went beyond the Wright and Shelby Amendment areas. By July 2000, American Airlines, Continental Express, and Delta Air Lines' partner Atlantic Southeast Airlines joined them. Experts thought other airlines would keep flying smaller jets from Love Field. But Southwest, which didn't use 56-seat planes, couldn't offer similar flights.
In late 2004, Southwest actively pushed to completely remove the Wright Amendment rules. In late 2005, Missouri was added to the list of allowed states for flights. New flights from Love Field to Saint Louis and Kansas City, Missouri, quickly started in December 2005.
On June 15, 2006, Dallas, Fort Worth, DFW Airport, American Airlines, and Southwest Airlines announced a plan. They agreed on how the Wright Amendment would be phased out. Both the U.S. Senate and House of Representatives passed laws about it on September 29, 2006. President George W. Bush signed it into law on October 13, 2006. The new law started on October 16, 2006.
Southwest began selling tickets under the new law on October 19, 2006. The agreement immediately removed bans on connecting tickets. It also allowed unlimited flights to domestic places eight years later. Because of this, Southwest could fly nationwide. The law also set the maximum number of gates at Love Field. Southwest controlled almost all of them. United Airlines had two, and American Airlines was supposed to have two. But American had to give up its two gates at DAL after merging with US Airways. Virgin America started leasing those two gates in October 2014.
Southwest is still the main airline at Love Field. Its main office, hangars, and training centers are next to it. Its connection to Love Field is shown in its heart logo and its stock symbol (LUV).
Events from 2000 to 2009
On March 5, 2000, Southwest Airlines Flight 1455, a Boeing 737-3T5, went off the runway at Burbank-Glendale-Pasadena Airport in Burbank, California. It slid across a street and stopped at a gas station. Two passengers were seriously hurt. The pilot and 41 passengers had minor injuries. The plane was badly damaged and could not be used again. This was the first major accident in the airline's 29-year history. The accident was caused by mistakes made by the pilots. Issues with air traffic control guidance also played a part.
Southwest's agreement with Icelandair ended in January 2007.
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In 2008, Southwest started using a special water pressure-washing system from Pratt and Whitney. This system cleans dirt from engine turbine blades while the plane is parked. Using this system often helps save about 1.9% on fuel.
Southwest paid $7.5 million to buy some parts of the bankrupt ATA Airlines in 2008. Southwest mainly wanted to get ATA's operating license and landing spots at New York's LaGuardia Airport. The deal did not include buying any planes, buildings, or directly hiring ATA employees.
On March 6, 2008, Federal Aviation Administration (FAA) inspectors told the United States Congress that Southwest allowed 117 of its planes to fly with passengers even though they were "not airworthy." This meant they were not safe to fly. Some planes flew for up to 30 months after they should have been checked. Thousands of passengers flew on planes that federal rules said were unsafe. Southwest did not comment at the time. U.S. Representative James Oberstar said a hearing would be held.
On March 12, 2008, Southwest Airlines voluntarily stopped 44 planes to check them. The FAA said Southwest Airlines flew almost 60,000 flights without fuselage inspections. Southwest Airlines faced a $10.2 million fine if they broke FAA rules. There were also rumors that the FAA knew about Southwest's issues but did not fine them to avoid disrupting flights. On March 2, 2009, Southwest settled these claims. They agreed to pay the FAA fines of $7.5 million for these safety and maintenance problems. The original fine was $30.2 million. This would have been the largest fine in the agency's history. It was lowered after a year of talks. The FAA gave Southwest two years to pay the fine.
On July 8, 2008, Southwest Airlines signed an agreement with WestJet of Canada. This allowed the two airlines to sell seats on each other's flights. This partnership was supposed to be finished by late 2009. But it was delayed due to money problems. On April 16, 2010, Southwest and WestJet agreed to end the plan.
On July 30, 2009, Southwest Airlines offered $113.6 million for bankrupt Frontier Airlines Holdings. Southwest planned to run Frontier as a separate airline at first. Then it would take it over and replace Frontier's planes with Boeing 737s. Less than a month later, on August 14, Southwest lost the bid to Republic Airways Holdings. Southwest decided not to try again. Southwest said a key reason was that the pilots' unions at both companies needed to agree on terms.
Southwest signed its second international agreement on November 10, 2008. This was with Mexican low-cost airline Volaris. This agreement allowed Southwest to sell tickets on Volaris flights.
On August 26, 2009, the FAA looked into Southwest for using wrong parts on about 10% of its jets. An outside company did the work. The FAA said the parts were not a safety risk. But the airline had until December 24, 2009, to replace them with approved parts.
Southwest in the 2010s
Buying AirTran Airways
Southwest Airlines first announced it would buy AirTran Airways on September 27, 2010. It got final approval on April 27, 2011. On May 2, 2011, Southwest Airlines finished buying AirTran Airways. It bought all of AirTran's stock and assets. Southwest Airlines estimated the deal was worth $3.2 billion. It expected to spend $500 million to combine the two airlines. But it also expected to save about $400 million each year. The biggest benefits for Southwest were access to Atlanta, international flights, and more landing spots at New York-LaGuardia Airport and Washington-Reagan Airport. Southwest got one operating certificate from the FAA on March 1, 2012. But the airlines were not fully combined until AirTran's last flight on December 28, 2014.
Southwest created a company called Guadeloupe Holdings. This company became a part of Southwest Airlines. It held AirTran's operations and assets. Southwest slowly moved planes, routes, and employees from AirTran to Southwest. This continued until AirTran was fully part of Southwest.
The purchase added 25 new places Southwest didn't fly to before. This included cities in the Caribbean and Atlanta, Georgia. Atlanta was a major hub for AirTran. At the time, it was the largest U.S. city Southwest didn't serve. On October 10, 2011, USA Today reported that Southwest would change how flights were scheduled in Atlanta.
On February 14, 2013, Southwest started sharing flights with AirTran. This meant they could sell tickets for each other's flights. They started with five markets on January 26, 2013. Then they added 39 more markets on February 25, 2013. By April 2013, shared flights were available for all Southwest and AirTran cities. The airlines were fully combined on December 29, 2014.
Events from 2010 to 2019
For ten years in a row, Fortune magazine named Southwest Airlines as one of the most admired companies. In 2004, Fortune listed Southwest Airlines as number three among America's Top Ten most admired companies.
On December 13, 2011, Southwest ordered 150 Boeing 737 MAX planes. It was the first airline to order this type. The first 737 MAX was delivered to Southwest on August 29, 2017. Its first passenger flight was on October 1.
In January 2012, Southwest Airlines wanted to fly to Mexican and South American places from Houston's William P. Hobby Airport. On May 30, 2012, Houston's city council approved Southwest's request. Southwest agreed to spend at least $100 million to upgrade Hobby Airport. This included building five new gates and a customs area. Construction took two years. International flights began in October 2015.
On April 11, 2012, Southwest added the 737-800 to its fleet. It seats 175 passengers. The regular 737-700 seats 143. The first 737-800 was called "Warrior One."
On February 22, 2013, the agreement with Volaris ended. It was a mutual decision. Many experts believe it ended because Southwest's partner, AirTran Airways, expanded into more Mexican markets.
In September 2014, Southwest introduced new branding. This included a new look for its planes and a new logo.
On October 13, 2014, the Wright Amendment rules at Dallas Love Field were removed. Southwest expanded flights from Love Field to cities outside the old limits.
Throughout 2014, Southwest increased flights at Reagan-National in Washington D.C. and LaGuardia Airport in New York City. It got more landing spots from the American Airlines/US Airways merger.
On June 10, 2016, Southwest got approval to start flights to Cuba. Southwest was one of six airlines chosen to fly to Cuba. Southwest started flights from Fort Lauderdale–Hollywood International Airport to Varadero, Cuba and Santa Clara, Cuba.
In July 2016, a technology problem caused hundreds of Southwest flights to be canceled. This left thousands of passengers and crew members stuck.
On April 17, 2018, Southwest Airlines Flight 1380 had an engine problem. One person died. The engine exploded on the Boeing 737-700. Pieces flew back and broke a passenger window. The passenger was partly pulled out of the broken window as air rushed out of the plane. Other passengers pulled her back in. But she died from her injuries. This was the first death from an accident in Southwest's history.
On March 13, 2019, the FAA grounded all 737 MAX aircraft. This happened after evidence suggested a common cause for the crashes of Lion Air Flight 610 (October 29, 2018) and Ethiopian Airlines Flight 302 (March 10, 2019). The 737 MAX 8 made up about 5% of Southwest's planes. The airline offered to rebook travelers on other planes without extra fees. On October 17, 2019, the airline said the MAX 8 was expected to stay grounded until at least February 8, 2020. This forced them to cancel about 175 flights each weekday.
In June 2019, Captain Bryan Knight flew his dad, Colonel Roy A. Knight, home to Dallas Love Field. 52 years earlier, Colonel Knight left Love Field to serve in the Vietnam War. Four months later, he was shot down over Laos. His son was five years old when he said goodbye. His body was found and flown from Laos to California. From there, Southwest flight 1220 brought him home to Dallas, Texas. When Colonel Knight arrived, he received full military honors.
Southwest in the 2020s
From 2020 to Today
In January 2020, Wall Street Journal reported on an investigation. It found that Southwest flew over 17 million passengers on planes with safety checks that weren't finished over two years. It also said the FAA allowed Southwest to fly planes with unresolved safety concerns.
In March 2020, the COVID-19 pandemic greatly affected Southwest. Air travel in the U.S. dropped by 92% compared to March 2019. This made the airline cancel 1,500 daily flights, about 40% of its schedule. In March 2020, Southwest Airlines stored 50 737-700 planes. This was in addition to the 34 grounded 737 MAX jets already stored. By April 7, it was clear that summer travel would also be affected. The airline stopped almost 50% of its flights until June 27. On April 14, Southwest finalized a deal for government help. It received $2.3 billion in grants and a $1 billion low-interest loan.
In April 2020, Southwest stopped fewer flights than other major airlines. It became the world's largest airline by how many seats it had flying. By April 28, Southwest had parked 350 of its 742 planes. It also delayed many expected Boeing 737 MAX deliveries. The airline was losing at least $30 million every day.
In July 2020, about one-third of Southwest's employees wanted to take early retirement or long-term leave. The company started programs for this. Over 16,800 employees signed up. On October 5, 2020, CEO Gary C. Kelly announced pay cuts for non-union employees and senior managers starting in 2021. This was to avoid having to temporarily lay off employees. He also said Southwest would talk to its pilot and flight attendant unions about similar cuts. But the unions were against it. On November 6, 2020, Southwest sent notices to 42 employees. This was the first time the airline had formally threatened to temporarily lay off an employee. On November 18, another 402 notices were sent to mechanics. However, a new law passed on December 27, 2020. It gave $15 billion in aid to airlines. Southwest then canceled the layoff notices and pay cuts.
During the airline industry's problems due to the coronavirus, Southwest tried to compete with bigger airlines. It expanded into their main airports and added more flights to vacation spots in 2021. Southwest announced it would grow in Houston and Chicago. It would add flights to Bush Airport in Houston (a United hub) and O'Hare Airport in Chicago (a hub for United and American Airlines). This was the first time Southwest served Bush Airport since 2005. It was also the first time it served the larger O'Hare Airport in Chicago. Southwest also started flights at Miami International Airport, an American Airlines hub. It also announced flights to three Colorado ski cities and several southern places. This made a total of ten new destinations in 2021.
In October 2020, Southwest said it was thinking about the Airbus A220. This could be an alternative to the MAX 7 to replace its 737-700s. Deliveries would start in 2025. However, in March 2021, Southwest announced an order for 100 MAX 7 jets. Deliveries would start in 2022. They said talks with Airbus never began.
In November 2020, the FAA officially ended the 737 MAX grounding. Southwest began getting its 34 737 MAX planes ready to fly again. It also retrained all its pilots. On March 11, 2021, Southwest resumed 737 MAX flights. It was the fourth U.S. airline to do so.
Southwest lost $3.1 billion in 2020. This was the first time the airline had not made a yearly profit since 1972.
On June 23, 2021, Gary Kelly announced he would step down as CEO in February 2022. Bob Jordan was announced to take his place. Kelly will stay as Executive Chairman of the board until at least 2026.
Images for kids
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Southwest Airlines passenger traffic growth
