Lamar Muse, who as Southwest's first
president and CEO helped create the low-fare airline model that now
is spreading around the world, died Feb. 5 of lung cancer at the
age of 86.
"Blunt, colorful
and plainspoken, he did what he thought was right for the business,
customers, employees and investors -- corporate politics be
damned," Muse's family said in a biography they released upon the
death of the Southwest co-founder. "He
democratized air travel, making it convenient and affordable for
the masses."
Herb Kelleher,
Southwest co-founder and chairman, said "Lamar was a part of
Southwest Airlines' beginning, and we will always remember him. He
will be missed. However, his influence at this great company will
never be forgotten."
Southwest said it
would publish Muse tributes in its in-flight and employee
magazines.
Muse, who has
been described as both brilliant and irascible, led Southwest from
1970 to 1978 but left in a power struggle with co-founder and
chairman Rollin King. There was a dispute over Muse's plans to
expand to Chicago's Midway Airport, which was an underutilized
facility back then.
Muse and his son,
Michael, launched a competitor in Dallas, Muse Air, which Southwest
eventually acquired.
Before he left
Southwest, however, Muse helped create the low-cost, low-fare model
that other airlines would emulate.
Muse pushed for
the fast aircraft turnaround times, fare structure and marketing
techniques that made Southwest airline famous and profitable. That
included putting flight attendants in hot pants (designed by his
late wife, Janice) and setting fares at bus ticket
prices.
He pioneered a
simplified fare structure consisting of executive class fares
during business hours and pleasure class fares at all other times,
including weekends.
In one famous
incident in 1973, Braniff slashed its Dallas-Houston fares. Muse
responded by matching the $13 price and offering a free bottle of
premium liquor to anyone willing to pay Southwest's full $26 fare.
A brief but aggressive ad campaign gave birth to the slogan,
"Nobody is going to shoot Southwest Airlines out of the sky for a
lousy $13." Southwest temporarily became the largest Chivas Regal
distributor in Texas, the story goes. Braniff abandoned the route
in 1975.
Muse also
implemented a profit-sharing program that made millionaires of
thousands of employees and helped set the tone for the airline's
famously friendly labor relations. The plan was a tradeoff for
lower wages and, Muse would also say, a way to make employees part
of the team and avoid having to create a costly pension
system.
Although Muse did
not leave Southwest on good terms, he and Kelleher apparently
reconciled. In late January, Kelleher agreed to donate $150,000
over a three-year period to the YMCA in Palestine, Texas, the town
where Muse grew up.
Muse's survivors
include his second wife, Barbara; son Michael; and daughters
Deborah Ann Muse (husband of Ken Carlson, founder of Midway
Airlines), Diane Muse Kinnan and Lisa Muse.
To contact reporter Andrew Compart, send e-mail to [email protected].