Kelleher, Herb(ert) D (1931– )

US airline entrepreneur and a pioneer of low-cost, no-frills, interstate flying. Kelleher co-founded Southwest Airlines (SWA) in 1971 with his then client, US executive Rollin W King, with only three planes. After fighting legal battles because of fierce opposition from industry competitors, the inaugural flight took off from Dallas for Houston in 1971 for a revolutionary fare of $20. The company has remained profitable since 1973, was listed on the New York stock exchange in 1977, and operates 2,600 flights a year flying to 57 cities in the southwest of the USA. He was named CEO of the Year in 1999 by the US Chief Executive Magazine.

Kelleher's company was exemplified as a model of customer service by US management consultant Tom Peters. SWA flies from the least congested airports, following the ‘small is beautiful’ maxim, and aims to turn a plane around in 20 minutes; employees are treated with the same respect as customers, and are carefully screened to meet high standards. They must also, it is claimed, have a sense of humour – during a dispute between flight attendants and schedulers, Kelleher made them trade jobs for a day. He has also introduced innovations such as electronic ticketing to reduce costs and loading time. Kelleher stepped down as CEO in June 2001, but remained chairman, with continuing responsibility for strategic planning.

Born in Haddon Heights, New Jersey, Kelleher practised as a lawyer before launching SWA. He is famed for his impersonation of US rock star Elvis Presley and for riding a Harley-Davidson motorbike. He also reportedly arm-wrestled another CEO for the rights to an advertising slogan.