Monday 2 March 2015

"Just Plane Smart" to "Just Plane Terrific"

 Corporate legal dispute solved by .... arm wrestling !

March 23, 1992
Dear Herb,
Just Plane Terrific! Your clever arm wrestling match with Kurt Herwald was a win/win, not mention great comic relief to serious watchers of nightly news. Congratulations on your “loss,” and best wishes.
Sincerely,
George Bush.

It is not a daily coincidence that the President congratulates you on your "loss" or congratulates you. Period. Well neither is an arm wrestling match to solve legal issue between two giant airlines.

MALICE IN DALLAS was an event of its kind. The constant crowd cheering, in a small run-down forgotten wrestling arena in the hearts of Dallas, was witness to a match that marked the history of corporate world. Nothing so scary, it was just a friendly contest between Stevens Aviation, represented by chairman Kurt Herwald and Southwest Airlines, headed by Herb Kelleher. The former aviation sales and maintenance company had been using the slogan "Plane Smart" one year before Southwest unknowingly started their ad-campaign with "Just Plane Smart". The issue which could have been a legal spat, going through trials for years while feeding corporate lawyers, became the root for an idea Stevens Aviation proposed - AN ARM WRESTLING match.Herb very sportively accepted the challenge.

The legendary charity arm wrestling match between "Smokin'" Herb Kelleher and Stevens Aviation's "Kurtsey" or "Killer" was a one on one , three round match. First round was tactfully won by Kelleher who sent a replacement , none other than J.R. Jones, the 1986 Texas arm wrestling champion, citing medical issue.The second round was Kurt's conquest as Kelleher was bested by Annette Coats, a tiny customer service rep at Stevens'.At a score of 1-1 the match became all the more interesting when finally for round 3 the two executive chiefs were face to face finally.Loud gasp, sheer attention, cheering sounds, knuckles cracking and ten seconds later Killer had outdone Smokin. The Sportatorium roared with his victory but he wanted to be out of the box again when he offered that both the companies keep using the slogan given Southwest Airlines' acceptance of his earlier crazy proposal.

With the end, both heads of the companies agreed that determining the dispute this way was a fantastic idea for publicity, their bottom line, and a way to show the personalities of their companies. Said Herwald,
"There’s too much litigation in business today and not enough leadership. We need more guys like Herb Kelleher who are willing to say we don’t need to go to court all the time."
According to preset rules the loser for respective rounds handed over $5,000 to the Muscular Dystrophy Association or Ronald McDonald House of Cleveland.The two airlines saved their millions from drowning over court trials and had a remarkable publicity.

Except for the lawyers( it just wasn't meant to be! ), true to Bush' statement it was a win/win for all.

 References :
Malice in Dallas : youtube :https://www.youtube.com/watch?v=46osNRJxBks
gizmodo.com : How an arm wrestle resolved a major airline dispute
friebergs.com : Malice in Dallas
Wikipedia: Herb Kelleher.

4 comments:

  1. Wow! arm wrestling .. thats unique and innovative
    This must have been one really good marketing strategy on their part

    ReplyDelete
    Replies
    1. Yup, it was one of the most interesting events I came across. Hence, I felt it was a story worth sharing.

      Delete
  2. Good work Megha! Keep it up and do post regularly to keep naive lovers of finance like us updated! :) :D

    ReplyDelete