11 Burst results for "Lamar Muse"
"lamar muse" Discussed on How I Built This
"It's how I built this from NPR. I'm guy Roz. So throughout the nineteen seventies southwestern lines still only fly within the state of Texas. But then in nineteen seventy eight something really important happens congress decides to completely deregulate the airline industry and for Southwest Airlines. That means they could now start flying to new cities outside of Texas. Her at this point. You southwest is expanding and your competitors are no longer. Just Texas airlines, you're competing was like American and and and and Pan Am and TWA, right. Like, the national major international carrier start to become your competitors. Yeah. So we're we're people skeptical that southwest would be able to compete in the big leagues. Oh, yes. We were described as Texas airline that could only be successful in the state of Texas. Okay. Yeah. Then we Then were. we were described as a sunbelt airline that could not be successful outside the sunbelt. There was a press conference for went into Baltimore. Where one of the reporters there said, well, you know, Mr. Keller, he said, I know you've been very successful out west. But now you're coming to east the most competitive part of the country as far as airline services concerned. And I said, yeah, it's so competitive that when we start out here, we're reducing your existing fares by sixty percent how competitive does that sound. I mean with south west at that time were you guys already sort of no frills what we were. No frills. We're in the sense that we were short hole then that kind of restricts what you can do. You have relatively short flight. Tell like, peanuts and drinks. Yeah. Yeah. Exactly. And then pretzels, and that sort of thing, but you know, when we start flying longer haul like from San Antonio to Los Angeles. We had a press conference, you know, to nounce a new service and one of the reporters there said, well, you going to serve meals on those flights, and I said, no, we're not we're going to charge you four hundred dollars less per trip. Right. And I understand you can get a pretty good sandwich at Chasen's for four hundred dollars. So when at what point did you give up your lap practice, actually that was at the request the board of directors in nineteen eighty one. So you were still you still had your own law practice that you are doing other work for throughout the entire nineteen seventies. Oh, yes. Yell, and I'll tell you the truth, you know, I didn't really hanger to be part of corporate life because you know, lawyers have a lot more freedom to do their own thing when where they want to. But we heard a very excellent FILA name Lamar muse. It was a real battler to get the company off the ground and operational. He has substantial airline experience, and he did a wonderful job. And so, you know, finally in nineteen Eighty-one we'd lost assessor to Lamar and the board director said to me you've got to do it. And and did you want to do it while I felt had to do? And I'll tell you why. Because the start of the nineteen eighties. You had unemployment of ten point eight percent. You had a double dip recession. You had the air traffic controller strike, then Lamar muse the guy we hired to get the company off the ground. He launched competitor against us called Muser. He's he left southwest, and then launched a competitor. Yup. Says three years after he left gold music. How did you feel about that? Well, I thought it was somewhat immodest on his part. But because he called him us air after himself..
"lamar muse" Discussed on Business Wars
"Three taps and swipe. So to start getting really great deals at great hotels for this summer and beyond. Check out the hotel tonight app right now and with promo code biz wars, you can get twenty five dollars off. Your first eligible booking. That's promo code biz wars be is e. w. a. r. s. to get twenty five dollars off your first eligible booking. From wondering, I'm David Brown, and this is business. You're listening to the final installment in our southwest versus American series. Free love. In our last episode American built the most powerful hub in the airline industry and bested braniff in a long fare-war war helping to drive one of south West's main rivals out of business southwest. Meanwhile, Volvo from a kitschy carrier selling sex appeal to one that has more fun in-flight than anyone else. Now, as this business war intensifies, southwest looks to turn its quirky corporate culture into a long term strategic advantage. American charts, of course, to becoming the biggest smartest carrier in the sky, and they're both headed toward a final resolution in a fight for hometown air rights. It's eight. Oh five AM on August night. Nineteen eighty-seven. A Royal blue McDonald Douglas MDA is performing a low altitude fly by the terminal at Houston's hobby air the plane circles back then touches down, gently and taxis toward its gate. A flight attendant makes an announcement, the seventeen passengers on board ladies and gentlemen on trans star flight. Five, four, seven, welcome to Houston. This is the termination of our flight today and our airline. Thank you. Trans star is or was a subsidiary of Southwest Airlines. It was formed out of Muser. The airline begun by former southwest CEO Lamar muse Kelleher bought Musar in one thousand nine hundred five. It's been losing two million dollars a month with trans star, weighing on its books, southwest posts, its first money losing quarter since nineteen, seventy three southwest sells most of trans stars eighteen planes to Texas Air, thirteen hundred, trans star workers lose their jobs. Those who get offered jobs at southwest are in for a bit of a culture shock. They're shown a southwest orientation video for new employees. This show, but without. On the ground. Strange. Yeah, that's her doing a funky little rap. Who else? Southwest is now banking on fun rather than its early days of sex appeal. In the video flight attendants have ditched hot pants in favor of khaki shorts, where flights in nineteen seventy-one had a Las Vegas lounge vibe today. Southwest is more like a backyard barbecue in the air except with peanuts instead of brisket. By April nineteen Eighty-eight. Southwest decides to play up fun while it pushes down prices for years. Southwest kept its fair structures, simple. So as not to confuse passengers. But now southwest bows to the market pressures created by Americans ultimate super savers southwest introduces advanced purchase seats called funfairs. It looked like another boring month. He was going to rearrange his sock drawer. She thought they'd fixed the cat. Then they discovered Southwest Airlines funfairs soon. They were getting away from just nineteen dollars to all sorts of exciting cities. Seeing things their mothers had warned them about eating food. They couldn't pronounce laughing out loud for no apparent reason. Southwest Airlines, funfairs. If you've got nineteen dollars, they're available. Now, if not never. Crandall may have lowered the bar with his high tech fares, but southwest has just limbo right under it offering rock bottom rates that are half the price of Americans lowest fare. It's may twenty third nineteen eighty eight and Kelleher demonstrates he's not above a bit of huxterism. One of the Airlines, Boeing, seven, thirty-seven. Three hundred touches down in San Antonio. It's painted like Shamu the killer whale a top attraction at SeaWorld and it's named Shamu. One southwest is signed paid promotional partnership with the marine mammal part. The plane taxis to a set of air stairs on a corner of the tarmac, getting off the plane or five people wearing penguin suits. One is Keller. The others are the chairman of SeaWorld of Texas and the mayors of San Antonio, Houston, and Dallas. They stand in their penguin suits in front of the seven thirty seven, which has just made its inaugural flight. They reinforce its image as the carrier that doesn't take itself too seriously. No kidding. The next day Bob Crandall the gruff Rhode Island, born CEO of American calls Keller. Her nice gimmick, but I do have one question for you. What are you gonna do with all the whale crap. Well, Bob, I'm gonna turn it into chocolate mousse and spoon feed it. All you Damn Yankees in Rhode Island. If you days later package arrives Crandall office, it's a three foot wide plastic tub filled with chocolate mousse in the middle of tub. There's a spoon in the shape of shampoo. The whale. Crandall laps and calls in his staff to eat up Keller's offering. He thinks to himself this crazy herb guys and half bad. At the moment. Crandall has plenty to smile about American is poised to become the number one air carrier in the country best in United in total domestic market share. It also has the biggest fleet and the most employees of any airline eighty thousand workers. It's late in nine hundred nine in calling Barrett, the corporate secretary of southwest and keeper of Kelleher schedule. He's notoriously disorganized is in her office with a team of her direct reports. The writing responses to letters from customers. One part of Barrett's work to reinforce the company's friendly culture. Today. A couple of hundred letters are stacked up on Barrett's desk. She's a chain smoker, like our boss, and she takes a long drag on barklay while reading one of the letters. Oh my gosh. Well, you look at this one. This is from a customer and V-neck. She was on a plane recently and says, this grey haired man got up from his seat and ask the flight attendant. If he could help her pass out peanuts, she's talking about her. She has no idea. Look, she writes, I just think it is so nice that Southwest Airlines is giving work opportunities to elderly people. American may have it size algorithms, but Southwest's corporate culture has definitely created something unique. As the decade rolls on Southwest's competitors. Also try to give that loving feeling to passengers and that would be all well and good if it weren't for the turbulence in the new decade ahead. America awakes to the drumbeats of war, sending oil and gas prices up and markets down. 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"lamar muse" Discussed on Business Wars
"It's February nineteen. Eighty five back in Dallas. Herb Kelleher is recovering from pneumonia and trying to muster strength to take care of some unfinished business. Since nineteen Eighty-one southwest is competed directly on a handful of roots in Texas and beyond with a startup carrier called news air as in Lamar muse, the CEO of southwest to resigned. After dust up with company, founder rollin, king muses, son, Mike started news air, but Lamar muse joined the carrier as fulltime CEO in late nineteen. Eighty four. The company was headed into a financial tailspin after years of mismanagement and price war on half a dozen routes with muses al-matar south west. He tried but ultimately couldn't navigate the company to calmer skies. Kelleher gets word that Muser which is known around southwest as revenge air has up a for sale. Sign and Kelleher wants to buy it. He invites Lamar muse over to his house for breakfast to see if he can strike a deal. God sakes her your terrible cook. You're a hell of a lot better. Make it got tails. They're right, Lamar, but let me ask you this. Would you rather be spending your time retired on your boat fishing for salmon off the Bank Hoover coast and seventy degree weather or being stuck here in hot as blazes Dallas running muse air. Honestly, I prefer the boat then the mar- let's talk numbers. They strike deal southwest will acquire it smaller rival, including its fleet of state of the art MD jets. It's valuable gates at Houston's hobby airport, and it's complete staff for seventy six million dollars for Kelleher, a lawyer with no business training. It's defining moment as CEO. He's made peace with an aggrieved former employees and he's executed a key transaction. The company's brief history, its first Akwa. -sition, but Kelleher starting to make an even deeper impression on south west personal one apart from his legal skills and his newfound business acumen Kelleher is well just plain likeable. So he's pressed into service to connect with the public. Kelleher appears TV ads for south west as the airline expands across the country folks warm up to her and his homespun irresistible charm. In one add, he's facing the camera while behind him, passengers are filling up the plane fast. When he hears the flight attendants closed the doors. He turns around and starts knocking on them calling out, hey, Kelleher here, the doors don't open. Now, Kelleher delights in the limelight and being playful. In fact, a lot of the employee's enjoy their moment in the spotlight with a hostage audience on board. Welcome aboard, Southwest Airlines to properly. Fasten your seatbelts slide, the flat end into the buckle and release lift up on the buckle position seatbelt tied and low on your hip. Just like by grandmother wears her support bra. If you are seated in an exit row, you must be able to handle the functions noted on the card and your seat back pocket in order to assist the crew in the event of an emergency. If you cannot perform these functions, please advise a crew member and they will receipt you. And if you simply do not give function, please let the crew member. No, and they will receipt you to onboard is Keller at the back of the plane where he prefers to sit. He turns to his seat mate. DNR flight attendants have been doing those kinds of Hannigan since nineteen seventy-one. It just happened one day on Southwest's first flight just after takeoff Kelleher asks flight attendant. If he can pass out peanuts to passengers as he goes through the cabin, some passenger starstruck. Ladies and gentlemen, we have an intern on board today who is going to help us with the inflight service, just call them herb because he won't answer to anything else. Kelleher walks down the aisle, stopping to chat with the Lubbock businessman now, sir. Would you care for peanuts Herve? I'd love some peanuts, but I gotta tell you are the ugliest flight attendant, I ever laid my eyes. A few days later when he's back in his Dallas office Kelleher recounts his in-flight fund. The company's corporate secretary, Colleen Barrett. She laughs and suddenly stopped short. You know her. I've been thinking, we've got something really special here with his culture of ours. We have to protect it. Now, neither of them realize it at the moment, but southwest is about to do more than protect its freewheeling culture. It's about to weaponize all those comedic flight announcements and other uniquely southwest personality quirks in ways its rivals will struggle and fail to match. In the next episode of southwest versus American Airlines, Bob Crandall bills the largest fleet in history and rolls out the biggest gun. The airline industry has ever seen a tech weapon that he uses to blast away low-fare competitors and southwest of southwest responds by unleashing the power of its people.
"lamar muse" Discussed on Business Wars
"It's just before midnight on October nineteenth nineteen Seventy-eight in Washington. At this late hour rowdy bar crawlers cruising through the streets music blaring, but traffic slows to a crawl at the inexplicable side of about two dozen people dressed in business attire lined up on the sidewalk outside the civil aeronautics board. In five days president, Jimmy Carter is expected to sign the airline deregulation act of nineteen seventy eight, which has passed the Senate and house with bipartisan support. One day later, the c. a. b. the regulatory body that has governed the airline industry for four decades. We'll take applications from airlines for new routes. They wanna serve routes where they'll face open competition on price. For the first time, the applications will be taken on a first come for serve basis. That's why tonight almost two dozen airline representatives have essentially camped out on the streets of DC their place holders, others dress, just like them. We'll take their place many times in the days before they actually hand the c. a. b. they're requested routes. Some try to Chit chat to pass the time from braniff you wit American more routes you guys trying to get why. Rates. I'm not telling you anything that's a trade secret pal. When the doors do finally open, there's a mad confused. Gold rush for routes the airlines claim. One thousand two hundred ninety two routes most of which are not currently served by any carrier. Braniff alone claims the right to serve six hundred different routes across the country. Deregulation has certainly arrived, but no one is exactly sure what it'll mean. Even southwest. The so-called darling of deregulation is cautious about expansion. Southwest's new CEO Howard Putnam a former United executive hired Keller her suggestion after Kelleher refused to be both CEO and chairman after Musa's resignation decides to apply for a single new route Putnam also shelves, Lamar muses plan to double the size of the airline by opening a subsidiary flying for midway airport in Chicago. Putnam's less concerned about the regulators. Then he is about over expansion his thinking just because southwest can fly anywhere it wants. Doesn't mean it should. Other airlines are still grabbing up as many routes as they can January of nineteen seventy nine, but southwest applies for an additional new route Dallas to New Orleans. Then something odd happens Representative. Jim Wright, the house majority leader begins hearings aimed at creating Bill, banning all interstate service from one airport in the whole country. Southwest's home base of love field. It's suspicious on the face of it Putnam as blindsided. He huddles with Keller herb helped me understand the cities of Dallas and Fort Worth who owned DFW airport still want to force us to move to DFT. W, right? Yeah. The FW is in Jim Reich's district. So he's going to protect DFW interests and braniff, and American Airlines are headquartered at DFW, so they're going to be beneficiaries. If we by law can't fly anywhere in the country out of love. We can't fully compete with flights out of DFW. They can go everywhere. So we're servicing eight cities in Texas and it's no problem. But if we operate out of love field somehow that violates the law, this stinks, we're not lying down for this herb. Let's go beat them in congress. Kelleher gets on a flight. An American Airlines flight out of BF WLS and heads to Washington to have lunch with Oregon Senator Bob Packwood. They go way back. He's a friend and former classmate from NYU law school. Bob, this is so wrong. You know that the competition has been suing for nine years to get us out of love field, right? We've always want now we have to fight to be able to fly out of state from love field. Hell this isn't just anticompetitive. It's legal harassment. Yeah, that's what it sounds like. I'll tell you what her, I'll do everything I can to help you. I didn't vote to deregulate the airlines just so we can start regulating individual airports. I can promise you her by can promise you right now all block every piece of aviation legislation coming out of the house until we get this settle. I'm going to be a thorn in Jim right side and he is sure enough rights Bill languishes as the standoff between the two chambers goes on Arizona's no nonsense Senator Barry Goldwater Wade's in. I think we're acting like a bunch of yoyos. Why can't people just fly to the air. They want to fly to what the hell is going on. Eventually Kelleher himself, it's down with right and hammers out a compromise. Southwest can fly nonstop from love field to cities within Texas and within the four states contiguous to Texas. But before the deal is sealed, right, asks herb for a pledge hard. Once this law is in place, I have to know that you won't sued undo it. You understand congressman, I promise you that Southwest Airlines will remain forever passionately neutral on this issue. I understand that we're politically outgunned on this and I won't sue on February fifteenth. President Carter signs the compromise into law. It's called the Wright amendment. Southwest has lost some of its edge at love field, but just as it's competitors, start working their advantage at the. FW airport, southwest deploys a new weapon that surprisingly powerful against the competition. The once resigned then re conscripted herb Kelleher as incredibly effective brand spokesman in the next episode of south west versus American Airlines Americans, Bob Crandall devises a strategy to snuff out rivals, but like some kind of zombie airline that refuses to die. Southwest keeps coming at American and makes it bleed.
"lamar muse" Discussed on Business Wars
"Booking. From wondering, I'm David Brown, and this is business. You're listening to the fourth installment in our Southwest Airlines versus American Airlines series. The darling of deregulation in our last episode, American Airlines best its rivals by rolling out the first industry-wide computerized reservation system and terminal a system. Other carriers will have to pay American to join. Southwest Airlines won a huge victory to a legal won a federal grand jury indicted. It's two chief rivals on charges of conspiring to put south west out of business. Southwest should be gliding, but the infighting is creating a drag on the airline things are moving so quickly that the board doesn't even realize both Lamar muse and herb Keller have resigned. Get Kelleher telegram. I and their first reaction is to send a letter to muse instructing him not to. Except Keller his resignation until they've had a chance to talk to him muses confused. What about my resignation? He thinks his notice was actually a thinly veiled ultimatum. Either you fire rollin rile walk. When news, here's of Keller's resignation, he interprets it as a ploy. He thinks that Kelleher must be supporting his effort to force the board cut Rawling king loose. The board calls for a special meeting at rollin kings office at love field. It's a small room with a lot of people in it, including news, they get down to business, no chitchat. First up, John merkin a part owner of the Super Bowl champion, Dallas Cowboys and one of Southwest's first investors. The first thing we need to do is to accept Lamar's, resignation, music, shocked. He's thinking, wait what the board is letting me go instead of king fury in heard overwhelm us. He suddenly realizes that king has swayed the board members to his point of view that muse is leading southwest in the wrong direction. Views gets up suddenly. Oh yeah. This is the way you feel you don't need me in here anymore. After moose storms out aboard, member grabs a phone. I need to speak with herb Kelleher Arado way. Oh, he's in Houston. Okay, fine. Patch me through to Gela here herb. We have a real emergency. You better get up here right away. There's a one pm board meeting. We need you. The airline needs you'd be at the meeting John. This is a bit awkward. Didn't you get my resignation? We did and we don't accept it. Now Keller has got a pretty good idea what this is all about, but he has no clue how it will unfold. He's only brought one extra suit with him to Houston, and he figures he'll need to keep it pressed if this emergency drags on for a few days. So he heads to the crew closet in the back of the seven thirty seven quietly hangs up his suit a southwest hostess spots. Him, sir. You can't hang that here. That's for crew only. Oh, it's okay. I'm I'm actually the corporate council for south west airlines. Oh, sure you are. And on the king of Siam. Now you gotta store that somewhere else, sir. Back at love field days, Lamar muse calls his wife after leaving the board meeting, Honey, you need to come down to the office and pick me up. I can't drive the company car anymore bore. Just let me go when Kelleher arrives in Dallas, the board reconvenes. But before they go any further, there's some business he wants to take care of now, listen everyone. Why in God's name would you let the Margot he's done a terrific job. Look, let me talk to him. I think we can resolve this somehow. The board reluctantly agrees, but Keller can't find Mu's. His wife is already picked him up. He's gone. The directors take his departure as a final gesture that he wants out. The unanimously vote to oust muse Kelleher abstains. Now there's the question of succession. Assuming he's about to be offered. The helm of the company and excited king begins to stand up ready to accept the role as he gets to his feet. One board member doesn't even glance at king. Instead, he turns to herb Kelleher her, you have to be the chairman and CEO. King sits back down crestfallen. He knows how warmly the board regards competent and personable Keller. Frankly, he just can't bring himself to start another fight. Kelleher, we'll Kelleher is also caught off guard way me. I've barely worked on internal operations here a flight attendant today didn't even recognize me. I'm a lawyer. He pauses for a moment and thinks well, yes, maybe could be chairman, but at least for awhile we're going to need to bring in a professional airline executive CEO. Okay. All in favor of her becoming chairman. Southwest Airlines is now in herbs hands. At American Airlines CEO Al Casey is meeting with his top executives, including Bob Crandall. His director of marketing Casey explains that the company is in a dire situation. American Airlines revenues arising. That's the end of the good news. American has sunk one hundred million dollars into its computerized saber reservation at work in terminal system in the offices of more than one hundred thirty top travel agents. It'll take years to recover that investment. An American doesn't have that kind of time as bleak as it is. That's not even the biggest problem that would be deregulation. Like the other regulated carriers American competes by flying routes that other carriers don't. The big carriers just stay out of each other's way. American might say, fly more direct flights between New York and Los Angeles than United, for instance, or offer a class of service. Maybe a lobster dinner on board or piano lounge in coach class on seven forty seven jets, and it charges premium fares for all this all permitted under regulation. But deregulation threatens to reduce the distinctions between carriers to one common denominator, price, whoever can afford to charge the least will win. And that's just the killer scenario that worries, Casey, David, -regulation we're going to have to cut fares to compete and if that wasn't bad enough. Well, to be Frank, we're out of money and we're in debt. So if we're gonna. Survive. We need to raise money. Yeah. Yes. The situation is that dire. The board leaves the meeting, worried. Casey is desperate to find ways to save money. And then he has an idea. He heads to the airport at Dallas Fort Worth or DFW to meet with an airport official. They shake hands cordially, and then retreat to an office. The sound of jets taking off the distance. Listen, I'm thinking of moving some of Americans operations from New York to a new office building. DFW might save some money for sure. I'll when y'all gonna move all of Americans operations to DFW. Casey snaps, his briefcase shut and stands to leave. Tell you what? Why don't you just make me an offer or the next hour? Casey and the official haggle over relocation terms, the cities of Dallas Fort Worth, as well as the DFW airport. Authority will issue. One hundred forty, seven million dollars worth of bonds to build Americans new headquarters. They've agreed to lease the facility to the airline tax free at a rate just high enough to pay off the bonds. Casey does some calculations on the spot. All right, so that, yeah, that'll save us about two hundred million over the next twenty years. Yeah, this is just the kind of thing I've been looking for. Yes, sir. We've got a deal. In the summer of nineteen seventy eight. The Senate passes the airline deregulation Bill as it makes its way through the house, the news of American Airlines impending move to DFW leaks to the press. Just as Casey is in Dallas touring potential headquarters sites in Texas. He's hailed as a hero when he returns to Manhattan. His secretary warns him that a different kind of greeting await simp-. The mayor of New York is called six times. He urgently wants to meet with you. He's very angry about us leaving the city a day later, New York Mayor Ed Koch, and New York City's entire congressional delegation cram into Casey's e side office. Casey New York will match DFW's financial incentives. We can also offer deeply discounted prime office space in the World Trade Center Koch leans back in his chair, confident that he will bring Casey. Around Mr Mayor that's generous, but there's something you can't offer that Texas can deregulation is clearly coming and in a deregulated world, we're going to need this kind of political clout to protect us. Texas has that and New York doesn't consider this. The majority leader of the house has a congressional district that includes DFW airport, Mr., Casey, then you're telling me you're just going to abandon New York for a few dollars and a few political points. If so, you're also betraying this city. Maybe conscious purposely missing the point. Doesn't matter. Casey has had enough. He walks to his office door and hold it. Open gentlemen. This meeting is over. American package bags American will fly into the deregulated skies from Dallas that puts them right into the flight path of the airline that is best prepared for deregulation. Southwest Airlines. When was the last time you used net flicks or another streaming service, thousands of movies and TV shows at your fingertips twenty years ago. It took a lot more work to watch a movie. But today, convenience is king. We choose convenient businesses daily, and they're some of the world's most dominant brands with podium. You don't have to be an app or online business to be a convenient business. Podium helps all kinds of companies big and small become easy to find choose and connect with. Here's how it works through podium. Customers can get in touch with your business. Ask questions, schedule appointments, leave online reviews, and more all via text. 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"lamar muse" Discussed on Business Wars
"June twenty seven nineteen seventy seven. It's a banner day, Southwest Airlines trading on the new York Stock Exchange. For the first time it's listed under the symbol, l UV a nod to its home airport code for Dallas's love. Veal spirits are high and rising. Why shouldn't they be the airline is debt free and profitable. It's got nine planes cruising the skies of Texas. And as of this day, five million passengers aboard, south west, south west, still only operates inside Texas where it doesn't have to worry about federal regulations that govern other airlines flying between states. But now Washington is looking to deregulate the industry and the other airlines are sensing downdraft without regulation that protects big carriers, high fares upstarts like southwest could be a threat. Still southwest airline CEO, Lamar muse isn't popping. Champagne instead veins are popping out on his forehead. He squabbling with rollin king southwest spout, her board member and chief pilot. They fight over the growth and direction of company, and it intensifies for a year. Finally on March twenty fourth nineteen, seventy eight. It boils over Southwest's corporate attorney. Herb Kelleher gets a call from king her Lamar's a frigging nightmare. He wants to double out west split to fourteen plane, just insane, and he wants to start a subsidiary in Chicago that he wants to call mid way southwest and he wants his son, Mike, his son to run it. This will over stretches and jeopardise southwest. Herb. You gotta stop him. Rollin Lamar's looking to do some aggressive things. I know Kelleher secretary walks into Keller's office, but I heard hang on a second Kelleher, puts his hand over the phone as he waits to learn why the secretaries interrupting Lamar muse is on the other line. Kelleher, smacks is for hit. He's been the go-between in nearly all of the squabbles between king and muse for eighteen months now and Keller is reaching his limit look around and we'll take care of this at the next board meeting. Okay. Sorry, I'm gonna have to call you back. After trying to talk both muse and king off the ledge Kelleher, this exhausted, he sits at his desk for a moment, his shoulders hunched and his eyes closed. He gets up and walks to a secretary's desk. I can't be the referee in nonstop sparring match anymore. I love this airline Baronne and Lamar gonna destroy it from within. I can't stop. I give up. Kelleher worked like a dog with these two men to get southwest aloft, but it just feels like too much. Now he was a deep sigh and look sadly to a secretary. Let's draft a letter to the board. That afternoon. Each member of the board receives a telegram from Kelleher informing them that he is resigning. He is ready to move on. Kelleher heads to the airport to catch a flight to Houston to work on a case for another client as he's boarding, he's unaware that Lamar muse has drafted his own letter to the board that same afternoon, it reads, I hear with offer my resignation as an employee of Southwest Airlines, just when the sky appears to be the limit for southwest two of the three men most responsible for its success have quit, and it's not like southwest can continue to ascend on autopilot. Someone has to take over the controls, but who. We're well into the summer months now. And if you're feeling stressed because you waited too long to book that vacation that I have great news for you hotel tonight is an app that partners with awesome top rated hotels to help them sell their on, sold rooms, which means you get incredible deals and they only work with hotels. They think you'll love my friends found out what I did. They're saving hundreds on their trips and finding a great selection of rooms with hotel tonight. If you can save all this money, why use anything else hotel tonight is great for booking last minute. But if you're a planner, the mishap is for you to because even though the name is hotel tonight, you can actually book in advance whether you're booking your summer vacation a place to hang out by the pool, spontaneous weekend getaways stations road trips, business trips. Well, this is the place to do it. You can book a room intense. Seconds. All it takes his three taps and swipe. So to start getting really great deals at great hotels for this summer and beyond. Check out the hotel tonight app right now and with promo code biz wars, you can get twenty five dollars off. Your first eligible booking. That's promo code biz wars be is e. w. a. r. s. to get twenty five dollars off your first eligible booking.
"lamar muse" Discussed on Business Wars
"Airport. It's the summer of nineteen seventy six. And meanwhile in Washington lawmakers are trying to find a way to jumpstart, the stalled Konami to stimulate business. They're looking to undo regulations. The highly regulated airline industry is a perfect test case. Southwest Airlines isn't concerned about deregulation. Company executives say they welcome it and the new competition it'll bring. Southwest's leaders are so confident in their business models. They believe that once regulations are peeled back, they'll be able to rule the skies and now southwest, which has five airplanes and five between Dallas Houston, San Antonio and the Rio Grande valley, but comes the poster child of what a deregulated airline industry might look like the company finished nineteen, seventy five with one point. One million passengers on nine hundred percent. Increase over its debut year of nineteen seventy one. Separate house and Senate committees have been holding hearings on airline deregulation. Not far away at a dimly lit theater in Washington. A panel discussion is about to get underway bigwigs from the airlines are there as well as the head of the civil aeronautics board, the federal regulatory group, controlling the major airlines Southwest's, Lamar muse spots, Massachusetts Senator Ted Kennedy, lead proponent of deregulation Senator hope you come down to Texas day in flying airline master muse. I'd be delighted, but if we can get deregulation through congress, maybe you'll just stop line of Austin Senator. We'd be delighted to do that. The panel of lawmakers, top airlines CEO's including news and airline industry. Regulators takes their seats, American Airlines, Albert Casey whose business relies on a regulated environment to survive, opens by arguing for continuing the status quo. There's nothing wrong with the airline industry or the form of regulation under which it operates. Those who would deregulate believe that once airlines are free from regulation, some economic magic will permit fares to go down and profits to go up. That won't happen. Muse chuckles and everyone looks at him. Oh, it's definitely possible. We're doing it just look at what we did last year in one thousand nine hundred seventy four about one hundred twenty thousand people flew out of the Rio Grande valley to the major cities in Texas. Southwest entered that market in February nineteen, seventy five in the next twelve months. You know how many passengers we carried two hundred seven. Ninety five thousand other carriers could do the same thing if their hands were not tied by regulation. Now it would also help if other carriers offered are kind of service service with a smile and a warm, welcome rather than a scowl. Panel wraps up, Casey, wanders over the views as he's removing his microphone. Here's airline dwarfs southwest, but the winds are shifting and he knows it. Well, congratulations, Lamar you kill this. Casey knows that because of south west deregulation is coming. An American Airlines can't stop it. In the next episode of south west versus American Airlines, deregulation is coming and southwest figures. It will be the chief beneficiary, but it's about to take an unexpected. Hit herb Kelleher is looking for the exit. From wondering, this is business wars. I hope you enjoyed this episode. Please subscribe on apple podcasts, Spotify Google podcast, Stitcher, I heart radio or wherever you listen to podcasts, you'll find a link on the episode notes, just tap or swipe over the cover art. You'll also see some offers from our sponsors. Please support our show by supporting them. Now, if you like what you've heard, we'd love it. If you could give us a five star rating in maybe tell your friends how to subscribe to another way to support us is to answer a short survey at one dot com slash survey and tell us what business war stories you'd like to hear. And a quick note about the conversations you've been hearing. We can't know exactly what was said with this dialogue is based on our best research. I'm your host, David Brown. Joseph Quinta wrote this story, Karen low is our senior producer and editor, Ginny lower, is our producer sound designed by bay area sound. Our executive producer is Marshall Louis created by earn on Lopez. Four one. Have
"lamar muse" Discussed on Business Wars
"Apollo ten is transmitting the first color pictures of earth from space before landing on the moon as protesters occupied streets, president, Nixon pledges to bring back twenty five thousand troops when he. Confrontation between gay rights activists and police outside the stonewall in a gay bar in Greenwich Village, New York City escalates into a riot. And at a farm in Bethlehem, Woodstock, music festival features, legendary acts of Santana, the Grateful Dead, Janice Joplin, and Jimi Hendrix. These events helped define an era and they also speak to the mood in the country. People want to throw out the rules challenge the establishment in some ways. It's the perfect climate for an upstart, like southwest, if only it can get in the air, it's been grounded for more than a year. Thanks to the lawsuits brought by braniff, trans, Texas, and continental. They have plenty to protect to braniff airlines has a monopoly on flights between the big cities in Texas, Texas international dominates air service between smaller cities and continental flies wherever the other two don't. They're all him then by federal regulation, but not air southwest with that advantage. Southwest should be in a position to soar past competitors. That would be a whole lot easier of southwest actually had some planes to fly trouble is the airline is burned through most of its half a million in seed money fighting lawsuits, king summons his board for a meeting. The mood is glum. John Mirka speaks first gentleman. We've bought a good fight. These other airlines are set on bleeding to death, and we don't have much blood left most in the room. Nod in agreement Keller does not listen everyone. I know this looks bad, but this is a legal battle. I'm convinced we can win on appeal and we need to win. All we're trying to do is offer Texas superior air transportation at a low prize Kelleher knows he's asking his backers to buck the establishment to break the airline grip on Texas, but that's designed guys in America at the time. Our competitors think thing ties up with lawsuits that's a per version of what America's supposed to be about. I won't free in a price to work. I want to win. Now, if you agree to let me keep trying, I work for free. I'll pay the court costs right out of my own pocket until we do win the. The board votes air southwest will fight. Eighteen long legal months later, Kelleher wins a ruling from the Texas supreme court. The bigger carriers appeal to the US supreme court, but in December nineteen seventy declined to overturn the Texas ruling southwest wins. It's a remarkable legal battle, but it could be a pyrrhic victory. Southwest has one hundred forty three dollars in the Bank and owes more than one hundred thousand dollars still. It is in business at least the aerobically. They need a team, the recession of the nineteen seventies put a lot of good people out of work and word is out that southwest is open for business by January nineteen seventy-one, Lamar muse. An airline industry veteran is president of air. Southwest muse puts fifty thousand dollars of his own cash into the company and raises more than two million dollars. He also renames the company, Southwest Airlines, and then the mad dash begins. It's early spring of nineteen seventy-one. Southwest is supposed to launch its first flight within two months. A mechanic has just arrived at his new job. Having just been laid off like many early southwest employee's by bankrupt, Purdue airlines, the mechanic in a team or trying to open the doors at the lone hangar. Southwest is least at love. Field company made a strategic decision to operate from a not so busy air for just a short drive from downtown Dallas. What in the world, the hangers relic from the nineteen forties. The mechanic is pushing on the doors, but they don't budge. This thing is rusted shut. The tracks are full of sand. It takes two days to pry open the buildings, forty foot tall doors. Meanwhile, another former Purdue airline employee is having a different kind of problem training stewardesses there aren't any so news runs of print ad aimed at a woman playboys been pursuing for years. It's titled an open letter to wreck. Hell Welsh. The newspaper ad reads, MS Welsh. You typify the girls. We're looking for warm, personable, and great looking in hot pants. If you know of any other girls like you at least twenty years old, twenty fifty vision without glasses between five, two and five, seven one hundred to one hundred thirty, five pounds who are high school graduates, preferably with college training. Would you please ask them to send us a brief statement of qualifications and a recent photograph. Twelve hundred applications poor in for just thirty eight of amiable jobs. On June fifteenth. Nineteen seventy-one muse meets with a reporter to crow about what they've accomplished within just three months. We bought three planes leased gates, three airports contract with jet, fuel and other suppliers launched
"lamar muse" Discussed on NewsRadio 1080 KRLD
"Be the one and only Tony Bennett Race On a. Hill Tony Bennett ninety two years old, today Eighty nine fifty four time to check on your. Money let's check in with David Johnson Uh-huh Gabby I, got? Two quick things for so so it's the anniversary of the Pacos tried beer line right we did that, and as you said and that tie at that time, about three days before that happened Lamar muse had just taken, delivery? Of three brand new shiny MD eighties and was ready to start flying as. Musar right and they said you. Can't do, it because we've, frozen the air traffic system we can't take any more capacity in fact we're ratchet. Down so those puppies are going to have to sit. On the ground just burn money And Lamar abuse took, all the FCC And eventually they would And that was a. Remarkable, moment in time now industrials average right now is. Up fifty five points there are five hundred more stocks, down SNP up four but the. NASDAQ, is slipping, again finally some profit, taking the fangs stocks, apples down. A half a bog Amazon's Dan six and Google's, down nine Espy's ahead four gold's up seven dollars and. Thirty cents, ten-year, rates two point nine five percent that's down the Dow's up fifty-six David. Johnson NewsRadio, teddy KRLD thank you David traffic and weather together on the ages that's. Coming up on KRLD you've reached, the high fashion hotline high, kids start school soon and I want them. To best in class, get to..
"lamar muse" Discussed on KQED Radio
"Npr on guy rise so throughout the nineteen seventies southwest airlines they still only fly within the state of texas but then in nineteen seventy eight something really important happens congress decides to completely deregulate the airline industry and for southwest airlines that means they could now start flying to new cities outside of texas her at this point you southwest is expanding and your competitors no longer just texas airlines you're competing with like american and and and and pan am and twa rightly national major international carriers start to become your competitors yeah so we're we're people skeptical that southwest would be able to compete in the big leagues oh yes we're a described as the texas airline that could only be successful in the state of texas okay yeah and then we were described as a sunbelt airline that could not be successful outside the sunbelt there is a press conference went into baltimore where one of the reporters there said well you know mr keller he said i know you've been very successful out west but now you're coming to the east the most competitive part of the country as far as airline services concern and i said yeah it's so competitive that when we start out here we're reducing your existing fares by sixty percent al competitive does that sound i mean we're south west at that time were you guys already sort of no frills what we were no frills we're in the sense that we were short haul when we started flying longer haul like from san antonio to los angeles we had a press conference to announce a new service and one of the reporters there said what are you going to serve meals on those flights and i said no we're not we're going to charge you four hundred dollars less per trip right and i understand you can get a pretty good sandwich chasen's for four hundred dollars so when at what point did you give up your practice actually that was at the request the board of directors from nineteen one so you were still you still had your own law practice that you were doing other work for throughout the entire nineteen seventies oh yes yell and i'll tell you truth i didn't really hanger to be part of corporate life because lawyers have a lot more freedom to do their own thing one where they want to but we heard a very excellent fella named lamar muse so it was a real battler to get the company off the ground and operational substantial airline experience he did a wonderful job and so finally in nineteen eightyone we lost sensor to lamar and the board director said to me you've got to do it and did you wanna do it while i felt i had to do and i'll tell you why because the star of the nine thousand nine hundred eighty s you had unemployment of ten point eight percent you had a double dip recession you had the air traffic controller strike then lamar muse the guy we hired to get off the ground he launched a competitor against us gold museum he he left south west and then launched a competitor says three years after he left gold muser how did you feel about that well i thought it was some audio modest on this more because you called the museum but were you were you like what are you doing i mean i what we work together all these years and now you're i mean we bought him later later when they're on the verge of bankruptcy we bought news there but it was there in one thousand nine hundred eighty one so i figured i'd better do what the board asked me to do and come to southwest airlines fulltime was making money at the time yes we've been profitable every single year for forty three years i guess now and we've never followed an employee that's their lives when the rest of the industry during that period up until now as probably thurlow i don't know a million and a half employees throughout the world basically we looked at history and said this is a very dicey business to be the airline business yeah so we may be flamboyant from the marketing standpoint but we're going to be very conservative from the fiscal standpoint you know her from the outside from listening to stories the airline industry seems so brutal i is it do you think it's more savage than than other industries i think that it's more competitive than other industries.
"lamar muse" Discussed on SuperTalk WTN 99.7
"Yes it is still valentine show some of the free market and this is another another example of this somebody sent me the rich sent me this he says took this for you at love field and i guess it's just a display or something the thirteen dollar fear war when south west reopened houston hobby it wasn't alone braniff had moved some of its houston dallas flights from houston inter inter continental to hobby braniff announces introductory fears that lower the one way fare between love field and houston hobby from so this from dallas to houston from twenty six dollars to thirteen dollars braniff spheres have one purpose to put south west out of business because it knows it south west won't be able to afford to match that fear if southwest doesn't lower it's fear braniff will win all the customers or of southwest does lowered sphere braniff will keep the fear in place until southwest goes out of business and response lamar muse appears newspaper ads saying nobody's gonna shoot south west out of the sky for a lousy thirteen dollars southwest gives customers the options the option of paying the full fear and receiving a fifth of premium liquor or paying the thirteen dollars most folks pay the full fear but the southwest ticket on the expense report they put the southwest ticket on the expense report and take the liquor home.