Southwest vs American - The Darling of Deregulation | 4
Business Wars
Audible
4.6 • 13.5K Ratings
🗓️ 20 September 2018
⏱️ 26 minutes
🧾️ Download transcript
Summary
As deregulation dawns, Southwest Airlines’ founder and CEO are locked in a power struggle. In the middle is Herb Kelleher, Southwest’s corporate attorney. And after 18 months serving as a punching bag for the company’s top brass, he’s had enough.
But as Southwest deals with a succession crisis, American Airlines is facing another emergency. It needs money, fast. The company is cash-poor after investing in its proprietary online reservation system, SABRE. The situation is so dire CEO Al Casey turns to a drastic option — moving the company’s headquarters from its homebase in New York City to Dallas.
Just as American is getting a financial lift, Southwest takes a nosedive. Deregulation has the company eyeing expansion routes, but the powers that be will do anything to stop it.
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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. |
| 0:04.6 | Download the app today. |
| 0:07.0 | It's June 27, 1977. |
| 0:17.4 | It's a banner day for Southwest Airlines. |
| 0:20.0 | It's trading on the New York Stock Exchange for the first time. |
| 0:23.8 | It's listed under the symbol LUV, a nod to its home airport code for Dallas's love |
| 0:29.0 | field. |
| 0:30.9 | Spirits are high and rising. |
| 0:32.9 | Why shouldn't they be? |
| 0:34.1 | The airline is debt-free and profitable. |
| 0:36.4 | It's got nine planes cruising the skies of Texas. |
| 0:40.4 | And as of this day, five million passengers aborted Southwest. |
| 0:46.4 | Southwest still only operates inside Texas, where it doesn't have to worry about federal |
| 0:50.4 | regulations that govern other airlines flying between states. |
| 0:54.6 | But now, Washington is looking to deregulate the industry, and the other airlines are sensing |
| 0:59.9 | a down draft. |
| 1:02.0 | Without regulation that protects big carriers high fares, upstarts like Southwest could be |
| 1:08.1 | a threat. |
| 1:09.5 | Still, Southwest Airlines CEO Lamar Muse isn't popping champagne. |
| 1:15.1 | Instead, veins are popping out in his forehead. |
| 1:19.4 | He's squabbling with Roland King, Southwest's founder, board member, and chief pilot. |
| 1:25.4 | They fight over the growth and direction of the company, and it intensifies for a year. |
... |
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