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Herbert D. Kelleher, Southwest Airlines


The Top 25 Managers -- Managers to Watch

Herbert D. Kelleher, Southwest Airlines

CEO Herbert D. Kelleher hasn't stopped having fun since 1971, the year he helped start Dallas-based Southwest Airlines Co. (LUV) Neither have his investors, who saw Southwest shares nearly double in price last year, recently hitting $31. In an industry plagued with passenger discontent and labor troubles, the short-hop, low-fare carrier has turned a profit every year for the past 28 years. It also has never laid off anyone and has become an icon of offbeat customer service. Its flight attendants, for example, sometimes sing the flight safety instructions.

Nurturing the "Southwest spirit" may become a little tougher in 2001. Southwest's capacity is expected to grow by 10.5%, in part because it is adding more long-haul flights. Still, the chain-smoking Kelleher, who successfully battled prostate cancer last year ("I don't smoke with my prostate," he jokes) is a shrewd manager who can spot an opportunity anywhere. Since it began operations, Southwest has dropped service in only two cities. It's not a slowing economy or high fuel prices that make him nervous. "What I worry about at night is messing things up ourselves," he says. That's not likely if Kelleher, 69, has a say. After all, it wouldn't be any fun.Return to top

TABLE

Key Accomplishments

-- Profits in 2000 should rise more than 30%, to about $622 million, with an 18% operating margin, more than double the industry average

-- Southwest's unit costs remain the lowest among the big carriers and some 30% below the industry averageReturn to top


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