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Business Wars

Encore: Southwest vs American Airlines | The Cult of Herb | 5

Business Wars

Wondery

History, Business, David Brown, Management

4.613.2K Ratings

🗓️ 7 July 2021

⏱️ 27 minutes

🧾️ Download transcript

Summary

Everyone loves Herb Kelleher—even FAA regulators. The onetime corporate counsel-turned-CEO is coming into his own at the helm of Southwest. But his latest challenge is coming up with a way to skirt the FAA’s pesky “slot” system, designed to limit air traffic by rationing takeoffs and landings. Kelleher has a business to run. So he embarks on a crazy plan to snag a few extra slots for Southwest. It may not work, but one thing’s certain: it will be a whole lot of fun. 

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Transcript

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0:00.0

Hey, Prime members, you can listen to Business Wars Add Free on Amazon Music. Download the app today.

0:13.0

A listener note, this episode originally aired in 2018.

0:18.0

It's the morning of June 11, 1981.

0:22.0

16 polished aluminum red, white and blue jets, shimmer in the Texas sun, as they fly in a line above Dallas Fort Worth International Airport.

0:35.0

The squadron descends one by one.

0:38.0

American 5747 maintain 17 zero knots.

0:42.0

Maintaining 17 zero knots, American 57 47.

0:45.0

3989 86 runway 18 left clear left clear to land American 59 8618 left the morning.

0:55.0

This is an unprecedented invasion.

0:58.0

No airline has ever sent this many planes from this many different locations to one airport in such quick succession.

1:05.0

Attention in the concourse, all passengers traveling on American flight 12 to New York, La Guarde, your flight is ready for boarding at Gate 2.

1:15.0

Passengers will get off the planes and be back in the air in just a couple of hours, headed for new destinations.

1:22.0

The future of American Airlines has just arrived in Dallas.

1:27.0

It's a future some at American didn't believe could happen.

1:30.0

Just four months ago, when company president Bob Crandell's executive team told Americans ground crews they would bring the fleet in and send it back up multiple times a day.

1:42.0

A revolt nearly broke out.

1:45.0

It's a big shift.

1:47.0

Airlines normally scoop up passengers from small markets and much like a commuter train make multiple stops for passengers to get on and off as the plane makes its way across the country.

1:56.0

Crandell is keen on the hub and spoke model.

2:00.0

He and his team believe it's more cost effective to bring passengers from smaller markets to a hub where passengers can be consolidated into fuller flights headed for other markets.

2:12.0

Delta does that in Atlanta.

2:14.0

American wants that in Dallas but with a much tighter turnaround window.

...

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