Speeches and Presentations from Southwest Leaders

Gary Kelly Greater Boston Chamber of Commerce April 23, 2008

As Southwest Airlines CEO Gary Kelly took the stage in front of more than 100 business leaders attending the Greater Boston Chamber of Commerce breakfast on April 23, 2008, he kicked off his presentation with a quick joke about the Texas Rangers. His hometown team took a beating earlier in the week from the Boston Red Sox and he was hoping that Bostonians were embarrassed about handing the Rangers four straight losses!

As the laughter settled, he turned his attention to the more serious state of the airline industry.

“This is an extraordinary time for our industry, with the dual threat of a recessing economy and skyrocketing fuel costs. Three airlines shut down in one week. Add to that a highly-charged regulatory environment with airport and air traffic congestion and Federal Aviation Administration compliance headlines. It’s been a tough couple of months,” Gary Kelly said.

He emphasized how important the Boston market is for Southwest. By surrounding Boston with flights in Manchester, Providence, and Hartford/Springfield, Kelly explained how Southwest maintains a strong market share and reaffirmed the airline’s dedication to serving the Greater Boston Area with Southwest’s low fares. He even alluded to Southwest, some day, serving Boston’s Logan International Airport.

Kelly illustrated how Southwest is still producing a profit and keeping fares low. Two accomplishments that are unheard of in the airline industry today.

“Southwest is an extraordinary Company. Like Jim Collins’ book, “We’re Built To Last.” In this business, you have to be resilient and you have to persevere. In this industry, Southwest is undeniably unique,” he said.

Kelly then outlined Southwest’s recipe for success:

• Hire great people, treat ‘em like family.
• Care for our Customers warmly and personally, like they're guests in our home.
• Keep fares and operating costs lower than anybody else by being safe, efficient, and operationally excellent.
• Stay prepared for bad times with a strong balance sheet, lots of cash, and a stout fuel hedge.

“Throughout our history, we’ve faced enormous challenges ranging from brutal competition to recessions to terrorism to hurricanes to soaring energy costs. We’ve been able to overcome those challenges and still maintain our core values regarding People; Customers; operations; financial health; and performance—for 37 years. That speaks volumes to discipline and consistency,” he said.

It’s clear for Southwest that success equals working hard, having fun, and treating Customers like family. With those principles as a foundation, Southwest’s success will continue for the next 37 years!

For additional information on Gary’s speech in Boston visit: http://www.boston.com/business/ticker/2008/04/logan_flights_f.html

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