Founders Kelleher Agrees To Stay On One Final Year At SWA Helm

The Board of Directors of Southwest Airlines announced Thursday details of its new employment contracts with Executive Chairman Herb Kelleher, President and Corporate Secretary Colleen Barrett, and Vice Chairman and Chief Executive Officer Gary Kelly.

Herb Kelleher, 76, will continue as Executive Chairman of the Board for one more year then will step down from that position at the Company's 2008 Annual Meeting of Shareholders. Kelleher is a Founder of Southwest Airlines and has served as Executive Chairman since 1978, said the company.

Colleen Barrett, 62, will continue as President for one year and will step down from that position on July 15, 2008. Barrett has served as Secretary of the Corporation since 1978; Vice President Administration from 1986 to 1990; Executive Vice President Customers from 1990 to 2001; and President since 2001.

Gary Kelly, 52, will remain CEO with a contract expiration date of February 1, 2011.  Kelly began his career at SWA as Controller in 1986; was named Vice President Finance and CFO in 1989; Executive Vice President and CFO in 2001; and CEO and Vice Chairman in July 2004.

After relinquishing their current management and Board positions in 2008, Kelleher and Barrett will remain for five years as employees of the airline they nurtured from the very beginning, working fulltime at the Company's Dallas headquarters.

"After 41 years as an Officer and Director of Southwest Airlines, I will be resigning from those positions as of our Shareholders' meeting in May 2008," Kelleher said. "Why? Because our organizational transition that began in 2001 will then be complete and because I have unalloyed respect for, and confidence in, our CEO Gary Kelly and his superb cadre of Southwest Officers. Southwest's future is bright -- and so are they!"

FMI: www.southwest.com