Southwest Airlines Company History In 1971 from a sketch on a napkin Southwest Airlines was born with three boeing737 jets flying to three Texas cities. Kelleher and a group of investors had put up the 560,000 dollars to found the company. (Business Week 1989).The philosophy of the company was clear to offer low-fare seats every flight every day. Southwest gave away leather ice buckets and fifths of liquor on its flights in order to keep its planes …
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…to their success and allowing them to be only one of two carriers to be in profit that year. This nearly doubled the capacity for future Oakland flight operations . Therefore, a number of strategic issues face Southwest Airlines. Some industry observers wondered whether Southwest should acquire on more of its ailing competitors, initiate a hub- spoke system, or begin to use computer presentation systems. Herb and Southwest still had t work cut out for them.