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Business Movers

Southwest | The Chairman of the Board | 3

Business Movers

Wondery

History, Entrepreneurship, Business

4.71.6K Ratings

🗓️ 30 June 2022

⏱️ 41 minutes

🧾️ Download transcript

Summary

After Lamar Muse departs Southwest Airlines, Herb Kelleher becomes chairman, and eventually CEO. But as Herb fights to expand Southwest, he finds himself up against congressmen, new competitors, and even his own pilots. 

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Transcript

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0:00.0

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0:07.0

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0:13.0

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0:31.0

It's March 1978 in Herb Keller's office in San Antonio. Herb lights a cigarette and paces the room. His nerves are frayed.

0:40.0

For the past several days he's been in the middle of a battle between Southwest co-founder Rollin King and Southwest's president Lamar Muse.

0:48.0

The two executives have never really liked each other, but in spite of their differences they've always managed to work together for the good of the company.

0:56.0

But lately, Rollin and Lamar have been at each other's throats over the future of the airline.

1:01.0

Lamar wants Southwest to move into the Chicago market. Rollin doesn't. Neither of them are willing to give an inch.

1:09.0

Herb himself doesn't know where he stands on the Chicago idea, but he's confident Southwest needs Rollin and Lamar to resolve their differences and find some way forward.

1:19.0

When Herb's phone rings, he picks up the receiver. But before he can get a word out, he hears Lamar Muse yelling on the other end of the line.

1:27.0

Herb, we need to talk about that son of a bitch, Rollin.

1:30.0

All right Lamar, calm down. Let's take a breath. Yelling at me is not going to do either if's any good.

1:35.0

Well just tell me what the hell is his problem. I think Rollin doesn't like what you're proposing to do in Chicago.

1:41.0

He doesn't like it because he doesn't understand it. We can set up a subsidiary airline midway Southwest and we can do the same thing in Chicago that we've done in Texas.

1:50.0

Lower affairs expand the market, make it killing. Yeah, yeah, Rollin doesn't see it that way though.

1:55.0

That's because Rollin's a high fluten Harvard MBA who hasn't been in the trenches like I have. He's a disdain for the every man.

2:02.0

The man treats me like I'm a Hick Herb. I may not have a college degree. No diploma on my wall, but I do know what I'm talking about.

2:10.0

Herb sets the phone down on his desk. He rubs his temples for a moment and picks up the receiver again.

2:17.0

Look Lamar, I don't care what's gone on between you two personally.

2:21.0

But you have to settle this fight. It was fine when it was behind closed doors, but now you're both coming to work every day with a big bad attitude.

2:29.0

Shouting, carrying on. It's rubbing off on our employees and hurting the airline.

2:34.0

Well, you know that's the last thing I want. I want Southwest to be the best airline in the world, same as you.

...

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