Business Wars Encore: Southwest vs American Airlines | Free LUV | 6
Jul 12, 2021
The podcast explores the fierce competition in the airline industry during the mid-1980s, highlighting the rise of low-cost carriers like People Express. It examines Southwest Airlines' unique culture and resilience, thanks to dedicated employees fostering a friendly atmosphere. The discussion shifts to economic turmoil, revealing how Southwest thrived while larger airlines struggled. The rivalry intensifies in the 1990s, showing American Airlines facing financial losses as Southwest boldly expands its low-cost strategies in a turbulent market.
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Episode notes
Kelleher and Crandall's Exchange
- Herb Kelleher compared competing with American to Finland being in Russia's shadow.
- Bob Crandall retorted, unlike the Soviets, he wasn't reducing his arsenal.
Shamu One and Chocolate Mousse
- Southwest painted a 737 like Shamu the Whale and named it Shamu One.
- Bob Crandall sent Herb Kelleher a tub of chocolate mousse with a Shamu spoon in response.
American's Growth and Southwest's Culture
- American became the largest airline, boasting the biggest fleet and 80,000 employees.
- Meanwhile, Southwest focused on its unique, friendly culture, even having its CEO help pass out peanuts.