Southwest Airlines began with the March 15, 1967 incorporation of Air Southwest Co. by Rollin King and Herb Kelleher to fly within the state of Texas.[3][4]
Kelleher believed that by staying within Texas, the airline could avoid federal regulation.[7] Three airlines (Braniff, Trans-Texas and Continental Airlines) started legal action which was not resolved for three years. Air Southwest prevailed in 1970 when the Texas Supreme Court upheld Air Southwest’s right to fly within Texas.[8] The Texas decision became final on December 7, 1970 when the U.S. Supreme Court declined to review the case, without comment.[9]