2005 Lyceum Speaker Series: Integrity

October 11, 2005
Gary Kelly Southwest Airlines CEO on the Business of Building Trust
by Kate McCann

When Hurricane Katrina devastated New Orleans— Southwest Airline’s largest hub—the company’s service to the city dramatically dropped from 57 flights a day to just two.  But while the City of New Orleans was forced to lay off workers, Southwest was able to offer the option of relocation to all of its 250 New Orleans employees.

“This proves we are living up to trust,” Gary Kelly, vice chairman and CEO of Southwest Airlines said during his talk Oct. 5 for the Lyceum Speaker Series.

In past visits to the McCombs School of Business, Kelly and his Southwest colleagues have stressed the importance of building the foundation of a company on its people. They maintain that it’s the good people at Southwest Airlines—the customers, employees and stakeholders—who set the company apart from other airlines.

Additionally, Kelly said the company is driven to develop a sense of trust as part of the corporate culture. “You have to have great employees, and you can’t do that without trust,” Kelly said. “Trust isn’t about jet engines or airports; it’s about people and building relationships with them.”

Businesses in the customer service sector have a unique goal—to simply tell the truth, to establish trust and to maintain integrity, Kelly said.

Southwest’s motto of “when in doubt, tell the truth,” has strengthened its credibility not only with its employees, but also with its customers and stakeholders.

“Southwest Airlines has to be a great place to work to get great people to come and stay,” Kelly said. “We’re known for being the greatest company to work for and at the top of the customer service rankings.”

With stated policies such as not charging fees for changing flights, Kelly says that the company goes to great extremes to “give Americans the freedom to fly” at a good price.

Trust is built over the long term, “to prove to people that they can count on you.” The company has been in the business for 34 years and prides itself on being a growing, successful and profitable company, without a single loss since its first year of flight in 1971. Southwest Airlines has also never faced employee layoffs, pay cuts or strikes, even with its commitment to unionization.