Business Wars Encore: Southwest vs American Airlines | The Darling of Deregulation | 4
Jul 5, 2021
Tensions flare as Southwest Airlines faces leadership conflicts while eyeing expansion amid deregulation. CEO Al Casey at American Airlines struggles with cash flow, resulting in a dramatic headquarters relocation. Meanwhile, Herb Kelleher emerges as a key player navigating corporate turmoil. The competitive landscape heats up as both airlines battle over routes and strategies in a changing regulatory environment, highlighting the resilience of Southwest in the face of adversity.
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Southwest's IPO and Leadership Clash
- Southwest Airlines goes public, trading under the symbol LUV.
- Internal power struggles between CEO Lamar Muse and founder Rollin King threaten the company's stability.
Muse's Ouster and Kelleher's Rise
- The board, initially accepting Muse's resignation over King's, ultimately fires Muse.
- Kelleher, initially resigning as corporate attorney, is asked to become chairman.
American's Financial Troubles and Relocation
- American Airlines faces financial difficulties after investing in SABRE.
- CEO Al Casey decides to move headquarters from New York City to Dallas to save money and gain political clout.