In Sunday's business section, the Chronicle's Jenalia Moreno pondered whether Southwest Airlines' unique corporate culture can survive its impending takeover of AirTran Airways, a far more traditional carrier.
We feel confident that the answer will be yes. And we're not alone. When the acquisition, pending regulatory approval, was announced in September, AirTran stock shot up by 62 percent. (Southwest stock rose 14 percent.)
The Texas airline, which began operations in 1971, is now the largest domestic carrier and has enjoyed 38 consecutive years of profitability, a record unmatched by any other U.S. airline.
But the really good news about Southwest is that the low-cost airline, which offers few perks — no first class, no assigned seating, no audio-visual frills — has become recognized as a business role model par excellence by paying as much attention to the human equation as it does to the bottom line.
And they can prove it.
In 2010, they topped many honors lists: customer satisfaction, favorite domestic airline, friendliest flight crews … and were named by Fortune magazine the twelfth most admired company in the world.
Not bad for a little outfit whose original business plan was a cocktail napkin sketch of a triangle joining Dallas, Houston and San Antonio.
The acquisition of AirTran will enable Southwest to expand its horizons internationally, with flights to Mexico and the Caribbean.
It may also signal changes to its fleet, which throughout Southwest's history has been exclusively Boeing 737s.
But some things won't change: the popular "bags fly free" policy and open seating will remain. As will Southwest's primary focus: As CEO Gary Kelly says, "Our people are our single greatest strength and most enduring long-term advantage."
It's a revolutionary concept to many: that putting people first can be the key to running a highly successful business.
Just imagine if we could transplant that same business ethic to our legislators, the people who run the business of government, to have them put people, their health, their jobs and their children's education above political expediency.
No one can say it can't be done. We have the proof right here in Texas.
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