Let me tell you a story about a little airline that flipped an entire industry on its head.
Picture this: It’s the late 1960s. Flying is a luxury for the rich. The skies are ruled by giants with deep pockets, fancy meals, and an iron grip on the market. It’s a game where the rules are rigged—and no one dares to challenge them.
Except for two Texans.
Rollin King and Herb Kelleher sat in a bar one night, dreaming up a crazy idea:
“What if flying could be as simple, cheap, and easy as driving?”
With a cocktail napkin as their business plan, they launched Southwest Airlines.
The giants laughed at them. The regulators tried to kill them. Competitors filed lawsuits to keep them grounded.
Most people would have quit.
But not these guys.
How Southwest Rewrote the Rules
Here’s what made Southwest unstoppable:
- They Simplified Everything
- Southwest used one type of plane (Boeing 737s) for every flight. One fleet meant cheaper maintenance, faster training, and fewer headaches.
- They Played Offense with Speed
- While competitors parked their planes for hours, Southwest turned theirs around in 10 minutes. More flights, more revenue, fewer expenses.
- They Made Flying Fun
- No first-class. No steak dinners. No BS. Just peanuts, jokes, and employees who actually liked their jobs.
- They Stayed Laser-Focused
- Instead of chasing trends or expanding too fast, Southwest mastered their core: short-haul, low-cost flights between Texas cities.
Here’s the kicker: they didn’t just survive—they thrived.
While the competition was burning cash, Southwest slashed fares to $13—cheaper than a tank of gas. Passengers flooded their flights, and the flywheel started spinning.
The Flywheel Effect in Action
Southwest’s success wasn’t magic. It was math:
- Lower costs → Lower fares → More passengers → Higher revenue → Lower costs.
Every decision fueled this cycle. Competitors couldn’t keep up because they were stuck in a bloated system.
Southwest was lean. Fast. Relentless.
But here’s the real secret:
It wasn’t just the strategy.
It was the culture.