• The New York Times, Wednesday, February 13, 2008 11:45 AM

Gary C. Kelly, who transformed himself from a buttoned-down C.P.A. to one of Corporate America's most colorful bosses, must compete in an industry with thinning profits and looming mergers. But he's intent on preserving a raucous corporate culture that includes diversions like Halloween skits.

Kelly is also pulling on the big levers, fundamentally changing the airline's business: raising fares, packing more people onto planes, and abandoning an egalitarian boarding policy for one that lets business travelers board and pick seats first. He needs to lift revenue by $1.5 billion a year to offset rising fuel expenses.

But making those big changes stick requires the enthusiastic support of Southwest workers. The small stuff, then--making the airline a nice, maybe even fun place to work--matters, too. The service on Southwest, while no-frills, is generally cheerful. And on many days that is enough to distinguish it from other airlines, where the workers have a hard time masking bitterness with management.

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