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Herb And Colleen To Step Down In 2008  
User currently offlineDeltaFFinDFW From United States of America, joined Sep 2003, 1440 posts, RR: 0
Posted (7 years 2 months 2 days 14 hours ago) and read 4691 times:

Best wishes to both of them and congrats on a long and very prosperous career!!


Southwest Airlines Co. said Thursday that chairman Herbert D. Kelleher will leave his post as chairman at the airline’s annual meeting in May 2008.

President Colleen Barrett will also step down from her job on July 15, 2008.

"After 41 years as an Officer and Director of Southwest Airlines, I will be resigning from those positions as of our Shareholders' meeting in May 2008," Kelleher said.

http://www.dallasnews.com/sharedcont.../072007dnbuskelleher.8eee5874.html

26 replies: All unread, showing first 25:
 
User currently offlineFlashmeister From United States of America, joined Apr 2000, 2900 posts, RR: 6
Reply 1, posted (7 years 2 months 2 days 13 hours ago) and read 4532 times:
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They're stepping down, but will still be employees for the next five years, according to the article. In any case, this is just further proof that this is not your father's Southwest anymore...

User currently offlinePanPan From United States of America, joined Dec 2005, 104 posts, RR: 0
Reply 2, posted (7 years 2 months 2 days 13 hours ago) and read 4503 times:

That's gonna be a huge loss for Southwest when the two of them go. I don't know a lot about Miss Barrett, but I've got nothing but respect for Mr. Kelleher and the fantastic airline he's helmed all these years.

User currently offlineOPNLguy From , joined Dec 1969, posts, RR:
Reply 3, posted (7 years 2 months 2 days 11 hours ago) and read 4392 times:

Quoting PanPan (Reply 2):
That's gonna be a huge loss for Southwest when the two of them go.

They're not exactly going...just relinquishing their officer positions--they're staying on as "regular" employees for a few more years..  Wink

" In its announcement, the carrier said that Mr. Kelleher and Ms. Barrett would remain full-time employees at Southwest’s Dallas headquarters for another five years after they leave their current positions."


User currently offlineCjpark From United States of America, joined Feb 2005, 1251 posts, RR: 6
Reply 4, posted (7 years 2 months 2 days 7 hours ago) and read 4183 times:

Interesting this news follows news earlier this week about Southwest offering packages to older employees.


"Any airline that wants to serve the [region] can go to DFW today and fly anywhere they want," WN spokesman Ed Stewart
User currently offlineFlyboyaz From , joined Dec 1969, posts, RR:
Reply 5, posted (7 years 2 months 1 day 18 hours ago) and read 3980 times:

Quoting Flashmeister (Reply 1):
In any case, this is just further proof that this is not your father's Southwest anymore...

Yes exactly. WN is going to have to change their business model to survive. The legacy carriers are now as efficient with costs similar and with much better networks and perks. I'm sure WN will be able to adapt, but it won't be the same anymore....reality sets in.


User currently onlineSLCUT2777 From United States of America, joined Dec 2005, 4060 posts, RR: 11
Reply 6, posted (7 years 2 months 1 day 18 hours ago) and read 3961 times:

Quoting Flyboyaz (Reply 5):
Yes exactly. WN is going to have to change their business model to survive. The legacy carriers are now as efficient with costs similar and with much better networks and perks. I'm sure WN will be able to adapt, but it won't be the same anymore....reality sets in.

You could say reality "seats" in, since I think you will see WN do away with the "cattle-herd." I think you'll see it "fade away" over the next couple of years as more and more customers pre-select their seats on-line as they purchase their flight. WN is a MUCH different carrier than they were 30-35 years ago when they were essentially a trans-Texas operation. They must attract more customers in the markets they are already established in, as well as fly to the rest of North America. Gary Kelly has them on the right path, and Herb and Colleen have made that very clear.



DELTA Air Lines; The Only Way To Fly from Salt Lake City; Let the Western Heritage always be with Delta!
User currently offlineFlyboyaz From , joined Dec 1969, posts, RR:
Reply 7, posted (7 years 2 months 1 day 18 hours ago) and read 3944 times:

Quoting SLCUT2777 (Reply 6):
You could say reality "seats" in, since I think you will see WN do away with the "cattle-herd." I think you'll see it "fade away" over the next couple of years as more and more customers pre-select their seats on-line as they purchase their flight.

I think so too....I also think you will see a lot more things costing money to their customers, when it was free before. They are actively looking at ways to generate more revenue. A small change fee would generate quite a bit of money for them annually. They now have some of the highest labor costs in the industry....it's amazing how the tables have turned. Their pendulum has swung just about as far as it can.


User currently onlineSLCUT2777 From United States of America, joined Dec 2005, 4060 posts, RR: 11
Reply 8, posted (7 years 2 months 1 day 14 hours ago) and read 3821 times:

Quoting Flyboyaz (Reply 7):
A small change fee would generate quite a bit of money for them annually. They now have some of the highest labor costs in the industry....it's amazing how the tables have turned. Their pendulum has swung just about as far as it can.

 checkmark  I think a change of flight plan fee will certainly come their way, I think otherwise they are unrealistic to think that they can do this business as usual. The upgrades they are doing to their IT will certainly make a number of changes for the better possible. But the biggest shock to many will be seeing a WN "Canyon-Blue" 737-700 at a few business and leisure destinations in Canada, Mexico and the Caribbean within 3 years or sooner.



DELTA Air Lines; The Only Way To Fly from Salt Lake City; Let the Western Heritage always be with Delta!
User currently offlineYellowtail From United States of America, joined Jun 2005, 6171 posts, RR: 2
Reply 9, posted (7 years 2 months 1 day 13 hours ago) and read 3800 times:

Quoting SLCUT2777 (Reply 8):
WN "Canyon-Blue" 737-700 at a few business and leisure destinations in Canada, Mexico and the Caribbean within 3 years or sooner.

My first bet will be MEX...PHX/LAX/SAT/MSY-MEX....can't do it from DAL and HOU yet....HOU would probably be a goldmine and CO would throw a hissyfit



When in doubt, hold on to your altitude. No-one has ever collided with the sky.
User currently offlineFlyboyaz From , joined Dec 1969, posts, RR:
Reply 10, posted (7 years 2 months 20 hours ago) and read 3675 times:

Quoting Yellowtail (Reply 9):
My first bet will be MEX...PHX/LAX/SAT/MSY-MEX....can't do it from DAL and HOU yet....HOU would probably be a goldmine and CO would throw a hissyfit

Flights like that would certainly help but the real cash cows are the overseas flights, which they can't (more like won't) do on their own. That's probably why they are looking at ATA expanding internationally more...and codeshare with them.


User currently offlineEDICHC From , joined Dec 1969, posts, RR:
Reply 11, posted (7 years 2 months 19 hours ago) and read 3641 times:

Well whatever the future holds for WN. When you do finally step away from the industry Herb, have a happy retirement!

User currently offlineN702ML From , joined Dec 1969, posts, RR:
Reply 12, posted (7 years 2 months 19 hours ago) and read 3625 times:

Quoting EDICHC (Reply 11):
When you do finally step away from the industry Herb, have a happy retirement!

He is certainly a great man and i, too, wish him a happy retirement.

My fondest memory of Herb Kelleher is actually from before I was employed by Southwest.

Im 1994, was a 17 year old high school student in Cleveland and wrote Herb a letter telling him how much i admired him and the Company.

A few weeks later, I received a letter from him stating that he and Colleen were coming to Cleveland for a lunch with the CLE management team and inviting me to attend.

As an airline geek even back then (yes, i know...sad) this was one of the most thrilling events of my life and an offer i doubt you would get from many other airline leaders.

I remember Colleen asking me at lunch what I wanted to do when I was out of high school and I told her I wanted to work for Southwest. She yelled down to Herb that I wanted a job and he said to apply and put him and Colleen down as references. So, I did. Haha!


User currently offlineAtrude777 From United States of America, joined Aug 2003, 5692 posts, RR: 52
Reply 13, posted (7 years 2 months 18 hours ago) and read 3593 times:

Quoting Yellowtail (Reply 9):

My first bet will be MEX...PHX/LAX/SAT/MSY-MEX....can't do it from DAL and HOU yet....HOU would probably be a goldmine and CO would throw a hissyfit

Why can't WN do Intl from HOU? Only DAL is restricted from the Intl Flight stuff.



Alex



Good things come to those who wait, better things come to those who go AFTER it!
User currently offlineF9Animal From United States of America, joined Dec 2004, 5050 posts, RR: 28
Reply 14, posted (7 years 2 months 17 hours ago) and read 3545 times:

It is about time that Herb enjoys retirement. He did a hell of a job, and he did a fine exit example for his retirement. He did not just jump ship and full on retire. He stayed around, and kept his hand in the basket.

Quoting Flyboyaz (Reply 5):
Yes exactly. WN is going to have to change their business model to survive. The legacy carriers are now as efficient with costs similar and with much better networks and perks. I'm sure WN will be able to adapt, but it won't be the same anymore....reality sets in.

Your right, as they do have to look into some changes. However, WN has the name, the popularity, and the prices. WN will survive just fine, as long as they continue to keep competent execs onboard. WN also has a ton of cash, still making money, and happy employees.



I Am A Different Animal!!
User currently offlineBoeing743 From United States of America, joined Jun 2007, 406 posts, RR: 0
Reply 15, posted (7 years 2 months 14 hours ago) and read 3487 times:

Quoting Atrude777 (Reply 13):
Why can't WN do Intl from HOU? Only DAL is restricted from the Intl Flight stuff.

HOU does not have FIS center there. if WN want to do Intl out of Houston, they would have to use IAH terminal D or E to process arrival international flights. I remember that WN used to fly out of IAH but only inside Texas so they cut it due to not enuff passengers load use WN out of IAH.

Atrude777, correct me if I am wrong.
 confused 


User currently offlineFlyboyaz From , joined Dec 1969, posts, RR:
Reply 16, posted (7 years 2 months 12 hours ago) and read 3425 times:

Quoting F9Animal (Reply 14):
Your right, as they do have to look into some changes. However, WN has the name, the popularity, and the prices. WN will survive just fine, as long as they continue to keep competent execs onboard. WN also has a ton of cash, still making money, and happy employees.

Yes and they have been in a position where they have looked at what happened to other carriers since 9/11 and can be proactive instead of reactive. Every airline in this country has experienced down turns of some kind. I don't think WN will ever (at least not anytime soon) get to the point of BK...but they will have a time when things are looking pretty bad. It's inevitable, it's the nature of the industry. They'll need to adapt to the new environment, lets just hope they don't make too many mistakes along the way.


User currently offlineF9Animal From United States of America, joined Dec 2004, 5050 posts, RR: 28
Reply 17, posted (7 years 2 months 12 hours ago) and read 3402 times:

Quoting Flyboyaz (Reply 16):
Yes and they have been in a position where they have looked at what happened to other carriers since 9/11 and can be proactive instead of reactive. Every airline in this country has experienced down turns of some kind. I don't think WN will ever (at least not anytime soon) get to the point of BK...but they will have a time when things are looking pretty bad. It's inevitable, it's the nature of the industry. They'll need to adapt to the new environment, lets just hope they don't make too many mistakes along the way.

What is great about WN is their simplicity. I guess that is what it is all about, is just simplicity. You are right about one thing, what goes up, must come down. That is indeed the nature of the industry. The great thing about WN, is if they get into any trouble, they have plenty of areas to shed. Instead of 12 daily flights to a city, they could reduce it down to 10. They have plenty of wiggle room, and they have saved plenty of money for the rainy days.

Herb and his team did a fine job, and positioned WN to be a household name. Simply amazing!



I Am A Different Animal!!
User currently offlinePar13del From Bahamas, joined Dec 2005, 7209 posts, RR: 8
Reply 18, posted (7 years 2 months 11 hours ago) and read 3372 times:

WN has been "different" for most if not all of its existence, and in general, most have wanted them to change and be like the rest, I hope this is not the beginning of the end, ala a take over from within.
1. I see no reason for their boarding process to change
2. I see no reason why their executives should not continue to be innovative and make good economic decisions - fuel hedges come to mind.
3. I hope they do not become another legacy like all the rest.


User currently offlineItsnotfinals From , joined Dec 1969, posts, RR:
Reply 19, posted (7 years 1 month 4 weeks 1 day 18 hours ago) and read 3240 times:

Quoting Par13del (Reply 18):
I hope they do not become another legacy like all the rest.

Technically WN is a legacy as they started operations before the Airline Deregulation Act of 1978.

WN has a lot of competition with F9 and B6 offering many more amenities with similar or lower prices, Spirit and Alligent putting a squeeze on LAS and FLL and Airtran taking customers at BWI and CAK (CLE) among other airports as well. Also, Virgin America and Skybus will begin chipping away at the upper and lower margins of WN's customer base (Although in a very limited way right now), this is putting a major crunch on WN's business model.

I think WN is a great airline, and I know they can find a way to reinvigorate their brand in order to compete in today's market.

[Edited 2007-07-22 18:40:20]

User currently offlineRC135U From United States of America, joined May 2005, 293 posts, RR: 0
Reply 20, posted (7 years 1 month 4 weeks 1 day 17 hours ago) and read 3213 times:

Quoting N702ML (Reply 12):
As an airline geek even back then (yes, i know...sad) this was one of the most thrilling events of my life and an offer i doubt you would get from many other airline leaders.

Great story - and there's hardly any need to apologize for being an "airline geek". You're certainly among friends here.  Wink


User currently offlineOB1504 From United States of America, joined Jul 2004, 3354 posts, RR: 6
Reply 21, posted (7 years 1 month 4 weeks 1 day 16 hours ago) and read 3159 times:

Quoting Flyboyaz (Reply 7):
They now have some of the highest labor costs in the industry....it's amazing how the tables have turned. Their pendulum has swung just about as far as it can.

As stated in another thread, they have the one of the lowest employee-to-aircraft ratios in the industry, which compensates for this.


User currently offlineConcordeBoy From , joined Dec 1969, posts, RR:
Reply 22, posted (7 years 1 month 4 weeks 1 day 16 hours ago) and read 3147 times:

Quoting DeltaFFinDFW (Thread starter):
After 41 years as an Officer and Director of Southwest Airlines

Interesting.
So if this statement is accurate, then it means that WN existed as a corporate entity for half a decade before they ever flew their first passenger.

Quoting Atrude777 (Reply 13):
DAL is restricted from the Intl Flight stuff

No it isn't.

Quoting Boeing743 (Reply 15):
HOU does not have FIS center there

Correction:
they might not have the facilities capable of processing hundreds of people disembarking several 737s simultaneously, but they are a customs landing rights airport, and are capable of processing a nonstop international arrival given due scheduling.

...same for DAL. Hell, same for LGA, DCA, and a slew of other "domestic" airports.


User currently offlineFlyboyaz From , joined Dec 1969, posts, RR:
Reply 23, posted (7 years 1 month 4 weeks 22 hours ago) and read 2994 times:

Quoting OB1504 (Reply 21):
As stated in another thread, they have the one of the lowest employee-to-aircraft ratios in the industry, which compensates for this.

I'm sure that's true but $25 an hour is a lot to keep paying an employee long term. Not to mention paying them $37+ an hour for overtime. Probably why they are offering early out to senior employees....it's starting to hurt.


User currently onlineSLCUT2777 From United States of America, joined Dec 2005, 4060 posts, RR: 11
Reply 24, posted (7 years 1 month 4 weeks 21 hours ago) and read 2949 times:

Quoting Par13del (Reply 18):
WN has been "different" for most if not all of its existence, and in general, most have wanted them to change and be like the rest, I hope this is not the beginning of the end, ala a take over from within.
1. I see no reason for their boarding process to change

This has been why they haven't been able to attract more customers in markets they are already established in. While die-hard WN fliers don't want to see it change, this keeps many people from flying WN again as well as for starters. the idea is to get people to pre-select a seat on the web at the time of purchase. While I don't see a sudden switch to assigned seating, I do see changes coming for the "pre-cattle-herd A-B-C" boarding group such as families etc... that will require them to pre-select their seats. This seat pre-selection feature could ultimately impact how many "A" boarding passes WN allows on a flight when the 24 hour cyber-gauntlet begins. As much as many people like it and hate to see it go and even think it is a critical element for WN in their aircraft turn times. Keep in mind WN can still turn a 737 much faster than virtually any other carrier, even with assigned seats.
I don't see WN becoming just like other legacy carriers with such a change. They will still find more efficient ways to do things, and will still have the lowest number of employees to passenger ratio which will insure they are a money maker now and in the future.



DELTA Air Lines; The Only Way To Fly from Salt Lake City; Let the Western Heritage always be with Delta!
25 Goingboeing : It's accurate. Southwest was originally scheduled to start flying in 1968 (I believe). Lawsuits from Braniff and Texas International (today's Contine
26 Post contains links and images Itsnotfinals : Very close, 1966 they started, 1967 incorporated. Herb only put in 20,000 dollars, I wonder how many 100,000% or more return on his investment he mad
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