Founded in 1967 to serve destinations in Texas, Southwest Airlines was initially prevented from operating, and saw long-haul flights from its original Dallas Love Field hub restricted by federal law for several decades. Despite these obstacles, Southwest has built a history of innovative business practices, and has grown to be one of the largest airlines in the United States and one of the largest low-cost carriers worldwide.
Early history
Southwest Airlines began with the March 15, 1967, incorporation of Air Southwest Co. by Lamar Muse, Rollin King and Herb Kelleher to fly within the state of Texas.
Kelleher asserted that by staying within Texas, price controls and market regulations imposed by the federal Civil Aeronautics Board would not apply, and the airline could undercut competitors' prices. Three airlines started legal action that took three years to resolve. Air Southwest prevailed in 1970 when the Texas Supreme Court upheld Air Southwest's right to fly within Texas. The Texas decision became final on December 7, 1970, when the U.S. Supreme Court declined to review the case without comment, vindicating Kelleher's opinion on the limits of federal market regulation.
On March 29, 1971, Air Southwest Co. changed its name to Southwest Airlines Co. with headquarters in Dallas. Southwest began scheduled passenger service on June 18, 1971 on two routes: between Dallas Love Field and Houston Intercontinental Airport and between Dallas Love Field and San Antonio with three Boeing 737-200s. Service between Houston Hobby Airport and Dallas Love Field and between Houston Hobby and San Antonio began on November 14, 1971. The Official Airline Guide for October 15, 1972 lists 61 flights a week each way between Dallas Love and Houston Hobby, 23 flights a week each way between Dallas Love and San Antonio and 16 flights a week each way between San Antonio and Houston Hobby; no flights operated on Saturdays.
Southwest Airlines founder Herb Kelleher studied California-based Pacific Southwest Airlines and used many of PSA's ideas to form the corporate culture at Southwest. Early flights used the same "Long Legs And Short Nights" theme for stewardesses on board typical Southwest Airlines flights. A committee including the same person who had selected hostesses for Hugh Hefner's Playboy jet selected the first flight attendants, females described as long-legged dancers, majorettes and cheerleaders with "unique personalities." Southwest Airlines and Herb Kelleher dressed them in hot pants and go-go boots.
