When asked about the secret to Southwest Airlines' success, Herb Kelleher jokingly replies, "Charismatic leadership." Beyond that, being the only major U.S. airline to make a profit every year since 1972 has come down to three factors: having a contrarian strategy and sticking to it, keeping costs down in good times so the company is prepared for the bad times and - perhaps most important - treating employees well and trusting them to do their jobs.
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Article provided by Federal Reserve Bank of Dallas in its journal The Southwest Economy.