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Southwest Airlines

Coordinates: 32°50′48″N 96°51′40″W / 32.846666666667°N 96.861°W / 32.846666666667; -96.861
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For the defunct California airlines, see Pacific Southwest Airlines and Southwest Airways.

Template:Three other uses 32°50′48″N 96°51′40″W / 32.846666666667°N 96.861°W / 32.846666666667; -96.861

Southwest Airlines
File:Southwest Airlines Logo.svg
IATA ICAO Call sign
WN SWA SOUTHWEST
Founded1971 (as Air Southwest)
Focus cities
Frequent-flyer programRapid Rewards
Fleet size550
Destinations69
Parent companyPublicly owned (NYSE: LUV)
HeadquartersDallas Love Field
Dallas, Texas, United States
Key people
RevenueIncrease US$11.0 Billion (FY 2008)[1]
Operating incomeIncrease US$475 Million (FY 2008)[1]
Net incomeIncrease US$178 Million (FY 2008)[1]
Total assetsDecrease US$14.3 Billion (FY 2008)[2]
Total equityDecrease US$4.95 Billion (FY 2008)[2]
WebsiteSouthwest.com

Southwest Airlines Co. (NYSE: LUV) is an American low-cost airline. The airline has its headquarters on the grounds of Dallas Love Field in Dallas, Texas. Southwest is the largest airline in the world by number of passengers carried per year (as of 2009).[3] Southwest maintains the third-largest passenger fleet of aircraft among all of the world's commercial airlines.[4] As of May 3, 2009, Southwest operates approximately 3,510 flights daily[citation needed].

Southwest Airlines has carried more passengers than any other U.S. airline since August 2006 for combined domestic and international passengers according to the U.S. Department of Transportation's Bureau of Transportation Statistics.[5] Southwest Airlines is one of the world’s most profitable airlines, posting a profit for the 37th consecutive year in January 2010.[6]

Southwest's successful business model involves flying multiple short, quick trips into the secondary (more efficient and less costly) airports of major markets, and using only one aircraft type, the Boeing 737.

The Southwest Effect

Southwest has been a major inspiration to other low-cost carriers, and its business model has been repeated many times around the world. Europe's EasyJet and Ryanair are two of the best known airlines to follow Southwest's business strategy in that continent (though EasyJet operates two different aircraft models today). Other airlines with a business model based on Southwest's system include Canada's WestJet, Malaysia's AirAsia (the first and biggest LCC in Asia), Sir Richard Branson's and Australia's Virgin Blue (although Virgin Blue now operates two aircraft types), Qantas's Jetstar (although Jetstar now operates two aircraft types), Philippines's Cebu Pacific, Thailand's Nok Air, New Zealand's Freedom Air, Mexico's Volaris and Turkey's Pegasus Airlines. Although Southwest has been a major inspiration to many other airlines, including Ryanair, AirAsia and Jetstar, the management strategies, for example, of Ryanair, AirAsia and Jetstar differ significantly from those of Southwest.[7]

History

A Southwest Airlines Boeing 737-300 at Portland International Airport.

Southwest Airlines was originally incorporated to serve three cities in Texas as Air Southwest on March 15, 1967, by Rollin King and Herb Kelleher. According to frequently-cited story, King described the concept to Kelleher over dinner by drawing on a paper napkin a triangle symbolizing the routes (Dallas, Houston, San Antonio).The original aircraft proposed for the service was the Lockheed Electra turboprop.[8]

Some of the incumbent airlines of the time (Braniff, Aloha Airlines, United Airlines, Trans-Texas, and Continental Airlines) initiated legal action, and thus began a three-year legal battle to keep Air Southwest on the ground. Air Southwest eventually prevailed in the Texas Supreme Court, which ultimately upheld Air Southwest’s right to fly in Texas.[9] The decision became final on December 7, 1970, when the U.S. Supreme Court declined to review the case without comment.[10]

The story of Southwest’s legal fight was turned into a children’s book, Gumwrappers and Goggles by Winifred Barnum in 1983. In the story, TJ Love, a small jet, is taken to court by two larger jets to keep him from their hangar, and then to try and stop him from flying at all. Taken to court, TJ Love’s right to fly is upheld after an impassioned plea from The Lawyer. While no company names are mentioned in the book, TJ Love’s colors are those of Southwest Airlines, and the two other jets are colored in Braniff and Continental’s colors. The Lawyer is designed to resemble Herb Kelleher. The book was adapted into a stage musical, Show Your Spirit, sponsored by Southwest Airlines, and played only in towns serviced by the airline.[11]

Southwest Airlines founder Herb Kelleher studied California-based Pacific Southwest Airlines extensively and used many of the airline’s ideas to form the corporate culture at Southwest, and even on early flights used the same "Long Legs And Short Nights" theme for stewardesses on board typical Southwest Airlines flights. The original flight attendants that worked for Southwest Airlines were chosen by a committee of individuals that included the same person who had selected hostess for Hugh Hefner’s Playboy jet. The selection resulted in a group of female flight attendants that were described as long-legged dancers, majorettes, and cheerleaders with "unique personalities". Southwest Airlines and Herb Kelleher proceeded to dress these individuals in hot pants and go-go boots.[12]

First flights

N68SW (The Winning Spirit) parked at Dallas Love Airport in 2009. The aircraft was used as a ground trainer for the airline's ground training department.[13]

In early 1971, Air Southwest changed its name to Southwest Airlines, and the first flight was on June 18, 1971. Its first flights were from Love Field in Dallas to Houston and San Antonio,[14].

Early losses and financial troubles

The rest of 1971 and 1972 saw operating losses. One of the four aircraft was sold to Frontier Airlines and the proceeds used to make payroll and cover other expenses. Southwest continued to operate a schedule predicated on four aircraft but using only three, and in so doing the "ten minute turn" was born, and was the standard ground time for many years.[15]

Southwest has used financial techniques such as fuel hedging to bolster its profitability and counteract many of the fiscal disadvantages of operating an airline.[citation needed]

By 1979, Southwest flew to all of the cities they currently serve in Texas, including El Paso, Amarillo, Beaumont, Corpus Christi, Harlingen, Lubbock, and Midland/Odessa. Interstate service began to New Orleans in 1979, and Albuquerque in 1980. Oklahoma City and Tulsa were added shortly thereafter. In 1981 Southwest co-launched the 737-300 with USAir. In 1982, the first expansion beyond the Southcentral U.S. took Southwest to the West Coast, adding Phoenix, Las Vegas and San Diego. In late 1984, the 737-300 was placed into service. Chicago Midway and St. Louis service began in March 1985, spreading to Midwest markets.[16]

Southwest hired its first black pilot, Louis Freeman, in 1980. In 1992, he was named the first black chief pilot of any major U.S. airline.[17]

Wright Amendment

Main article: Wright Amendment
A Southwest Airlines Boeing 737-700 landing at Lindbergh Field in San Diego. Complete elimination of the Wright Amendment will allow non-stop service from Dallas Love Field to all U.S. airports.

After the opening of Dallas-Fort Worth Regional Airport, which was the original name of Dallas-Fort Worth International Airport in 1974, Southwest was the only airline to remain at Love Field.[citation needed]

When airline deregulation came in 1978, Southwest began planning to offer interstate service from Love Field. This caused a number of interest groups affiliated with Dallas-Ft. Worth Airport, including the city of Fort Worth, to push the Wright Amendment through Congress to restrict such flights.[18] Under the restrictions of the amendment, Southwest, and all other airlines, were barred from operating, or even ticketing passengers on flights from Love Field to destinations beyond the states immediately surrounding Texas. In effect, to travel through Love Field, a passenger and luggage would have to deplane and fly on a separate ticket, on a separate aircraft.[citation needed]

The Wright Amendment’s restrictions did not apply to aircraft configured with 56 or fewer seats. In 2000, Legend Airlines attempted to operate long distance business-class flights using older DC-9s with 56 seats, but did not have the resources to survive American’s legal and marketing attacks, and quickly ceased operations. Southwest did not use the 56 seat loophole, even with its market strength at Love Field and the availability of more modern regional jets such as the CRJ-700/900 and the Embraer ERJ 145 family.[citation needed]

Southwest’s efforts to repeal or even alter the Wright Amendment were met with opposition from American Airlines and Dallas Ft. Worth International Airport. Both American Airlines and DFW contended that repeal of the Wright Amendment restrictions would cripple DFW,[19] while Southwest contended that repeal of the Wright Amendment would be beneficial to both Love Field and DFW.[citation needed] Continental Airlines has a successful hub and spoke operation at Houston Bush Intercontinental Airport despite unrestricted competition from Southwest at Houston Hobby Airport.[citation needed]

In 1990 the airline registered its aircraft in Houston so it could pay aircraft taxes in Houston, even though the actual corporate headquarters were in Dallas. Southwest was not physically relocating any assets, but Texas state law allowed the airline to choose either Dallas or Houston as the city of registry of its aircraft.[20]

In 1997, Southwest’s efforts began to pay off with the Shelby Amendment, which added the states of Alabama, Mississippi and Kansas to the list of permissible destination states. Southwest began offering non-stop service between Dallas Love Field and Birmingham, Alabama, which it could not do prior to the enactment of the Shelby Amendment.[citation needed]

In late 2004, Southwest began actively seeking the full repeal of the Wright Amendment restrictions. In late 2005, Missouri was added to the list of permissible destination states via a transportation appropriations bill. New service from Love Field to St. Louis and Kansas City quickly started in December 2005.[citation needed]

At a June 15, 2006 joint press conference held by the city of Dallas, the city of Ft. Worth, Dallas-Ft. Worth Airport, American Airlines, and Southwest Airlines, the said parties announced a tentative agreement on how the Wright Amendment was to be phased out. Both the U.S. Senate and House of Representatives passed Wright-related legislation on September 29, 2006, and it was signed into law by President George W. Bush on October 13, 2006. The new law became effective on October 16, 2006, when the FAA Administrator notified Congress that any new aviation operations occurring as a result of the new law could be accommodated without adverse effect to the airspace.[citation needed]

Wikinews has related news:

Southwest started selling tickets under the new law on October 19, 2006. Highlights of the agreement are the immediate elimination of through-ticketing prohibitions, and unrestricted flights to domestic destinations eight years after the legislation takes effect. Because of the agreement, nationwide service became possible for Southwest; the law also defined the maximum number of gates at Love Field. Southwest controls all of the Love Field gates except for four gates controlled by American Airlines, Continental Airlines, and Delta Air Lines. The future of the Legend Airlines terminal for use by commercial airlines is in doubt because of the limit on number of gates.[citation needed]

Southwest remains the dominant passenger airline at Love Field, maintains its headquarters, hangars, training centers, and flight simulators adjacent thereto, and reflects its ties to Love Field in its ticker symbol (LUV).

Acquisitions

Morris Air

One airline influenced by Southwest was Morris Air, founded in 1984 by June Morris and David Neeleman, based in Utah and operating in the northwestern U.S. Southwest Airlines purchased Morris Air and absorbed the capital and routes into its inventory and service. David Neeleman worked with Southwest for a short period. When his non-compete agreement expired, Neeleman founded JetBlue Airways, a competing airline that also incorporates (and in some ways, improves upon) many principles and practices pioneered by Southwest, including building a positive, warm employee culture and operating a simple fleet.[21]

Muse Air

Southwest Airlines has mostly pursued a strategy of internal growth, rather than by acquisition of other airlines as commonly occurs. However, in addition to acquisition of Morris Air Transport (see above), Southwest did acquire competitor Muse Air in 1985, which operated McDonnell Douglas MD-80s. Muse Air was renamed TranStar Airlines. TranStar Airlines was then closed in August 1987.

ATA Airlines

Towards the end of November 2008, Southwest announced it was buying the operating certificate and the remaining assets of ATA Airlines. This acquisition transferred to Southwest Airlines ownership of New York LaGuardia slots formerly controlled by ATA. The transaction did not include any aircraft, facilities or employees of ATA.

Failed acquisitions

Frontier Airlines

On July 30, 2009, Southwest Airlines publicly announced a $113.6 million bid for Frontier Airlines Holdings, the parent company of Frontier Airlines. Southwest's plan was to initially operate Frontier as a stand-alone carrier, but eventually absorb the airline. Frontier's aircraft would also be replaced with Boeing 737s that Southwest had long operated as its aircraft type.[22]

On August 14, news reports announced that Southwest had lost its bid to Republic Airways Holdings. Industry experts had expected Southwest to win, which would have grown its presence in Denver and allowed it to explore international routes. However, Southwest said a key reason its bid wasn't chosen was because it chose not to remove a requirement calling for pilot unions at its company and Frontier to reach an agreement.[23]

Fuel cost containment measures

Southwest Airlines earned a reputation for being very aggressive and proactive about containing fuel costs as a key to maintaining profit margins.[24]

A Southwest Airlines aircraft prepares for its next flight at Bob Hope Airport in Burbank, California.

Some analysts have argued against the style of profit-motivated energy trading Southwest did between 1999 and the early 2000s. They suggested that rather than hedging business risk (such as a hedge on weather to a farmer), Southwest was simply speculating on energy prices, without a formal rationale for doing so.[25][dead link]

At present, Southwest has enjoyed much positive press (and a strong financial boost) from its energy trading skills.[26][27][28] However, while most analysts agree that volatility hedges can be beneficial,[25] speculative hedges are not widely supported as a continuing strategy for profits.[29]

In the third quarter of 2008, Southwest recorded its first loss in 17 years due to its fuel-hedging contracts being of lesser value because of the drop in oil prices.[30]

Jet engine pressure-washing

In 2008, Southwest contracted with Pratt and Whitney to supply the proprietary Ecopower water pressure-washing system, which allows Southwest to clean grime and contaminants off engine turbine blades while the aircraft is parked at the gate. Frequent use of the Ecopower system is estimated to improve fuel efficiency by about 1.9%.[31][32]

Internet presence

On March 16, 1995, Southwest became one of the first airlines to have a website. Originally called the "Southwest Airlines Home Gate", passengers could view schedules, a route map, and company information at Iflyswa.com.[33][dead link] The company later obtained the rights to its current home on the web, http://www.southwest.com, from an unaffiliated business. Southwest consistently rejects syndicating its fares to fare search sites such as expedia.com or orbitz.com.[34]

Southwest.com is the number one airline website for online revenue, according to PhoCusWright. Nielsen/Netratings also reports that Southwest.com is the largest airline site in terms of unique visitors.[35] In 2006, 70 percent of flight bookings and 73 percent of revenue was generated from bookings on southwest.com. As of June 2007, 69 percent of Southwest passengers checked in for their flights online or at a kiosk.[35]

Southwest also maintains a website for their in flight magazine, named Spirit.

Violations of safety requirements

On March 6, 2008, Federal Aviation Administration (FAA) inspectors submitted documents to the United States Congress, alleging that Southwest allowed 117 of its aircraft to fly carrying passengers despite the fact that the planes were "not airworthy" according to air safety investigators.[36] In some cases the planes were allowed to fly for up to 30 months after the inspection deadlines had passed, rendering them unfit to fly. Records indicate that thousands of passengers were flown on aircraft deemed unsafe by federal standards. Southwest declined comment at the time, and US Representative James Oberstar advised a hearing would be held.[36][37][dead link]

On March 12, 2008, Southwest Airlines voluntarily grounded 44 planes to check if they needed further inspection. The FAA claimed that Southwest Airlines flew almost 60,000 flights without fuselage inspection. Southwest Airlines faced a $10.2 million fine if they violated FAA regulations. There have also been rumors that the FAA knew about Southwest Airlines violations but decided not to fine the airline because it would disrupt the service of Southwest.[38]

On March 2, 2009, Southwest settled these claims, agreeing to pay the FAA fines of $7.5 million for these safety and maintenance issues. The original fine of $10.2 million - a sum which would have been the largest fine in the agency’s history - was lowered after a year of negotiations. The FAA gave Southwest two years in which to pay the fine.[39]

On August 26, 2009 the FAA investigated Southwest for installing improper parts on about 10% of its jets. The work was performed by an outside maintenance company. The FAA stated that the parts do not present a safety danger, but the airline was given until December 24, 2009 to replace the parts with those approved by the FAA.[40] The FAA is still determining whether it will fine Southwest or its vendor.[41]

Lobbying

Southwest has fought against the development of a high-speed rail system in Texas.[42][43]

Risk management

Southwest Airlines has gained a reputation for "outside the box thinking" a proactive risk management, including the use of fuel hedging to insulate against fuel price fluctuation. In 2008 the company received a great deal of press for a hedge against the potential financial insolvency of their D&O insurer, AIG,[44][45] constructed with their insurance brokers, Catto & Catto LLC and Executive Perils, Inc.

Corporate affairs and identity

Headquarters

Southwest Airlines headquarters in Dallas

The Southwest Airlines headquarters are located on the grounds of Love Field in the Love Field area of Dallas, Texas.[46][47]

Previously the airline was headquartered in the 1820 Regal Row building in Dallas, by Love Field.[48] Southwest moved into its current headquarters in 1990. At that time the headquarters had 256,000 square feet (23,800 m2) of space and approximately 650 employees.[49] The current headquarters facility was built at a cost of $15 million in 1990 dollars.[50] In early 1995 the building received an additional 60,000 square feet (5,600 m2) of space. As of 1996 about 1,400 employees worked in the three story building.[49]

In March 1996,[51] the airline announced that it would begin to build a 300,000 square feet (28,000 m2) addition to the existing corporate headquarters at a cost of $30 million in 1996 dollars.[52] This occurred after, on Wednesday March 13, 1996, the Dallas City Council unanimously voted to allow for the construction.[53] The airline leased two additional tracts of land, a total of 10 acres (4.0 ha) of space, from the City of Dallas to build a new pilot training facility, a headquarters expansion, and additional parking spaces. A $9.8 million new pilot training facility was built on a 5 acres (2.0 ha) plot of land owned by the city of Dallas; it was scheduled to be completed Spring 1997. With the new pilot training facility built, the old one would be removed and the company would expand its headquarters building to the north. 120,000 square feet (11,000 m2) of building space, which had a price of $16 million including fixtures, was built, making the headquarters have a total of 436,000 square feet (40,500 m2). The airline also leased 4.8 acres (1.9 ha) from the city of Dallas to build additional parking; 700 spaces were added to the existing 1,200. After the facilities announced in 1996 were added, Southwest had a total leasehold of about 24 acres (9.7 ha) of land, including its headquarters, training facilities, and parking. By the end of 1997 the expansion of the facilities at Love Field and several terminal improvements were expected to cost Southwest $47 million.[49]

Advertisements

The company has employed humor in its advertising. Slogans include "Just Plane Smart", "The Somebody Else Up There Who Loves You" and "THE Low Fare Airline". The airline's current slogan is "It's On.". A select history of print and video ads are available on the company website.[54]

A Southwest Boeing 737-700 at Chicago Midway International Airport

"Just Plane Smart"

Shortly after Southwest started using the "Just Plane Smart" motto, Stevens Aviation, who had been using "Plane Smart" for their motto, threatened a trademark lawsuit.[55]

Instead of a lawsuit, the CEOs for both companies staged an arm wrestling match. Held at the now demolished Dallas Sportatorium (the famed wrestling facility) and set for two out of three rounds, the loser of each round was to pay $5,000 to the charity of their choice, with the winner gaining the use of the trademarked phrase. A promotional video was created showing the CEOs "training" for the bout (with CEO Herb Kelleher being helped up during a sit up where a cigarette and glass of whiskey (Wild Turkey 101) was waiting) and distributed among the employees and as a video press release along with the video of the match itself. Herb Kelleher lost the match for Southwest, with Stevens Aviation winning the rights to the phrase. Kurt Herwald, CEO of Stevens Aviation, immediately granted the use of "Just Plane Smart" to Southwest Airlines. The net result was both companies having use of the trademark, $15,000 going to charity and a healthy dose of goodwill publicity for both companies.[56]

Employment

The President and CEO of Southwest is Gary C. Kelly, who replaced Colleen Barrett as president on July 15, 2008. Southwest's CFO is Laura Wright. In July 2007, Herb Kelleher resigned his position as Chairman. Colleen Barrett left her post on the Board of Directors and Corporate Secretary in May 2008 and President in July 2008. Both are still active employees of Southwest Airlines.

Concerns attributed to labor unrest and complaints by the Transport Workers Union of America (TWU) representing Southwest flight attendants were reportedly a factor in the resignation of Kelleher's hand-picked replacement as CEO. James Parker resigned in July 2004 and was replaced by Chief Financial Officer Gary Kelly.[57]

Organized labor

Although Southwest is considered a "low fare" airline, it is heavily unionized when compared to other airlines.[58] The Southwest Airline Pilots' Association, a union not affiliated with the Air Line Pilots Association, International, represents the airline's pilots.[59] The Aircraft Maintenance Technicians' are represented by the Aircraft Mechanics Fraternal Association (AMFA).[60] Customer Service Agents and Reservation Agents are represented by the International Association of Machinists and Aerospace Workers Union (IAM). Flight Dispatchers, Flight Attendants, Ramp agents and Operations agents are represented by the Transport Workers Union (TWU).

Corporate reporting

Southwest Cares

Southwest's 2008 report that expounds on the company's commitment to the environment and reports on the airline's corporate responsibility and citizenship efforts pertaining to People, Planet, Communities, and Suppliers. Southwest Cares

Awards and recognitions

  • The American Brand Excellence Awards recognize leading national brands that best serve the needs of small- and medium-sized businesses. For 2007, Southwest Airlines came out tops in the Travel segment, based on a City Business Journals Network nationwide survey of 1,000 business decision-makers who evaluated 251 brands.
  • For the tenth year in a row, FORTUNE magazine recognized Southwest Airlines in its annual survey of corporate reputations. Among all industries in 2005, FORTUNE has listed Southwest Airlines as number three among America’s Top Ten most admired corporations.
  • FORTUNE has ranked Southwest Airlines in the top five of the “Best Companies to Work For” in America. Southwest ranked first in 1997 and 1998, second in 1999, and fourth in 2000. Southwest has chosen not to participate since 2000.
  • Southwest Airlines’ Rapid Rewards program was honored in InsideFlyer magazine's 2006 annual Freddie Awards for Best Program of the Year, Best Award Redemption, Best Award, Best Web Site, and Best Bonus Promotion Honors.
  • For 2007, the eighth year in a row, Business Ethics magazine lists Southwest Airlines in its "100 Best Corporate Citizens", a list that ranks public companies based on their corporate service to various stakeholder groups.[61] Southwest is one of only 11 repeat winners that have made the list all eight years.
  • In 2005 and again in 2008 The American Customer Satisfaction Index (ACSI) recognized Southwest Airlines as leading the industry in customer satisfaction. The ACSI, conducted by the University of Michigan, independently tracks customer satisfaction levels by measuring the household consumption experience.[62]
  • Since 2000, HISPANIC magazine has listed Southwest Airlines as Corporate 100 for leadership in providing opportunities for Hispanics and for supporting recruitment, scholarships, and minority vendor programs.
  • The Express Delivery & Logistics Association honored Southwest Airlines as the "2006 Airline of the Year."
  • In 2005, American Small Business Travelers Alliance ranked Southwest Airlines as the "Best Airline Among Small Business Travelers."
  • Southwest president Colleen Barrett was chosen as 2007's Tony Jannus Award winner,[63] becoming the first woman to be honored in the 44-year history of the respected aviation award.
  • Professional Women's magazine included Southwest Airlines in their 2006 ranking of the "Most Admired Companies Among Women."
  • According to Institutional Investor magazine, Southwest Airlines ranked number one in the Consumer category among all airlines as the "Most Shareholder Friendly Company" based on the effectiveness of Southwest's governance and investor relations as part of their overall efforts to maximize share holder value.
  • Southwest Airlines took top honors in the ninth Business Travel News Annual Airlines Survey.
  • In 2006, Southwest ranked in GIjobs.nets list of 50 military friendly employers. At number 37, Southwest was the only major commercial airline to make the list.
  • In its January 2006 issue, Institutional Investor ranked Southwest CEO Gary Kelly as one of America's top CEO's. He was ranked best CEO in the airline sector.
  • In April 2007, The Port of Portland presented Southwest Airlines with the Environmental Excellence Award in recognition of an exemplary effort in the category of Environmental Innovation.[64]


Destinations

Current service

Main article: Southwest Airlines destinations
Ramp operations at William P. Hobby Airport in Houston, with a Southwest Boeing 737-500 parked at a gate

As of May 23, 2010, Southwest Airlines operates scheduled service to 69 destinations in 35 states, the newest of which being Northwest Florida Beaches International Airport in Panama City, Florida which opened in May 2010.[65]

Southwest does not use the more traditional "hub and spoke" flight routing system of most other major airlines, preferring instead the "Point to Point" system. Currently, Southwest serves 69 cities in 35 states, with more than 3,300 flights a day. It has notably large operations in certain airports. Airports with large Southwest operations include Baltimore (BWI), Nashville (BNA), Chicago (MDW), Dallas (DAL), Denver (DEN), Houston (HOU), Los Angeles (LAX), Oakland (OAK), Orlando (MCO), Phoenix (PHX), San Diego (SAN), San Jose (SJC), Sacramento (SMF), Salt Lake City (SLC) Tampa (TPA and (Austin, Texas) (Austin-Bergstrom International Airport). An average of 80 percent of Southwest passengers are local passengers, meaning only 20 percent of all passengers are connecting passengers. This is significantly higher than most airlines, where passengers often connect in hub cities.[66]

As part of its effort to control costs, Southwest tries to use secondary airports which generally have lower costs and may be more convenient to travelers than the major airports to the same destinations. For example, Southwest flies to Chicago Midway Airport (MDW) in Chicago instead of O'Hare International Airport (ORD), Fort Lauderdale-Hollywood International Airport (FLL) and Palm Beach International Airport (PBI) in South Florida instead of Miami International Airport (MIA), Dallas Love Field Airport (DAL) in Dallas instead of Dallas-Fort Worth International Airport (DFW), Long Island MacArthur Islip Airport (ISP) & New York-LaGuardia (LGA) instead of New York-John F. Kennedy Airport (JFK), and Houston Hobby Airport (HOU) in Houston instead of George Bush Intercontinental Airport (IAH).

Southwest’s tribute to Arizona Boeing 737-300 aircraft undergoes maintenance at Portland International Airport.

Southwest makes exceptions to its practice of serving secondary airports by flying into some larger airports in major cities, such as Las Vegas International Airport, Phoenix Sky Harbor International Airport, Lambert St. Louis International Airport, Orlando International Airport, Detroit Metropolitan Wayne County Airport, Philadelphia International, Denver International Airport, Cleveland Hopkins International Airport, Kansas City International Airport, Seattle-Tacoma International, Bradley International Airport (Hartford, CT) and Pittsburgh International. In the Baltimore-Washington market, Southwest has limited flights into one major airport (Washington Dulles International Airport) while maintaining their east-coast focus city at the region's other major airport, Baltimore-Washington International Airport (BWI). In the Los Angeles market Southwest flies to both the major city airport, Los Angeles International (LAX), and to three of the four secondary airports, Burbank-Bob Hope Airport, Santa Ana-John Wayne Airport, and LA/Ontario International Airport. With the restoration of service out of San Francisco International Airport on August 26, 2007, Southwest now serves all three airports in the San Francisco Bay Area; the other two being Oakland International Airport and San Jose International Airport.

The airline also once served Stapleton International Airport in Denver but withdrew in 1986 because of excessive ATC delays during poor weather exacerbated by minimal separation between the runways. Southwest returned to Denver in 2006 with service to the new Denver International Airport. Southwest is expanding Denver service faster than any previous Southwest destination[67] at the cost of service to Orlando, Kansas City and Baltimore.[68]

Top served cities

During November 2008, Southwest applied to purchase 14 slots (for 7 roundtrips daily) previously used by ATA Airlines at LaGuardia Airport.[69] The bid was approved about a month later, and further progress was made during late March, 2009. In early April, it was announced that the airline will (strategically) have a combined total of 16 daily arrivals and departures (5 and 3 each way with MDW and BWI respectively), despite the receipt of only 14 slots.[70] On June 28, 2009 Southwest successfully started servicing LaGuardia Airport and the airline is confident about future growth at LGA, including expanded service to other locations.;[71][72]

On February 19, Southwest announced service to Boston's Logan airport, in the Fall of 2009 .[73] Service began August 16, 2009, with five daily roundtrips to both BWI and MDW .[74] Southwest says that it is complementing their service to Manchester, NH and Providence, RI. As reported by the Boston Herald earlier this year, there is a two-gate operation with an additional 2 gates as options at Logan .[75] Southwest is hoping to curve toward business travelers that stay in downtown Boston and bring lower ticket cost and fees to these travelers .[76]

In October 2009, the airline announced service to: Northwest Florida Beaches International Airport near Panama City, Florida, with service starting on May 2010.[77]

The latest new service announcement was on May 11, 2010 for both Greenville-Spartanburg International (GSP) and Charleston International (CHS) airports in South Carolina. The airline will start flights to and from South Carolina within the year. It will spend the next four or five months studying which cities to connect with the Palmetto State.[78]

International service

Prior to ATA's shutdown, Southwest Airlines had set a goal to codeshare with ATA and begin international codeshare services or ticket for international flights in 2009. Destinations served by ATA could have included Canada, the Caribbean, Mexico, and Europe. On July 8, 2008, Southwest announced that it has agreed to a comprehensive codeshare agreement with Canada's second largest carrier WestJet, though implementation had been delayed.[79][80][81] The WestJet codeshare agreement was terminated in early 2010.

Southwest also has announced plans to codeshare with Mexico's Volaris with flights starting in 2010. Volaris operates out of Oakland (OAK), Los Angeles (LAX), and San José (SJC).

Southwest's further plans for codeshares would require negotiation with its Pilot and Flight Attendant work groups due to contractual requirements.

Codeshare agreements

Current
  • Volaris

Southwest announced its second international codeshare agreement on November 10, 2008, with Mexican low-cost carrier Volaris. The agreement will allow Southwest to sell tickets on Volaris flights beginning in 2010, including international flights from the United States that the carrier started in early summer, 2009.[82] Volaris serves Oakland (OAK), Los Angeles (LAX) and San José (SJC) with service to Guadalajara. Volaris also operates between Los Angeles (LAX) and Morelia (MLM), Toluca (TLC) and Zacatecas (ZCL).[83]

Past
  • Icelandair

In 1997, Southwest and Icelandair entered into interline and marketing agreements allowing for joint fares, coordinated schedules, and transfer of passenger luggage between the two airlines at Baltimore. Icelandair operated flights between Baltimore and Keflavik Airport in Iceland. Connecting service between several U.S. cities and several European cities appeared in the Southwest timetable[84] The frequent flyer programs were not included in the agreement. This arrangement lasted for several years but is no longer in existence.

  • ATA Airlines

ATA Airlines, one of Southwest Airlines' main competitors in the Chicago market, historically operated out of Midway Airport alongside Southwest. ATA declared bankruptcy, and in 2004, Southwest injected capital into ATA that (among other things) would have resulted in Southwest's 27.5% ownership stake in ATA upon their exit from Chapter 11 bankruptcy proceedings.

In a departure from its traditional "go it alone" strategy, Southwest entered into its first domestic codesharing arrangement with ATA, which enabled Southwest Airlines to serve ATA markets in Hawaii, Washington, D.C., and New York City.

In late 2005, ATA secured $100 million in additional financing from the firm of MatlinPatterson, and Southwest's original deal with ATA was modified such that Southwest no longer retained the 27.5% stake (or any other financial interest) in ATA. The codeshare arrangement expanded to include all of ATA's 17 destinations and all of Southwest's 63 destinations. In 2006, Southwest's pilot union approved a codeshare sideletter to their contract with limitations on the growth of this and other codeshare agreements. While these restrictions today are minor, outsourcing remains a growing concern in the union's current contract negotiations.

During 2006, Southwest Airlines began marketing ATA only flights. ATA's dependence on the Southwest network continued to grow in 2006, and at the time of ATA's demise in April 2008, the airline offered over 70 flights a week to Hawaii from Southwest's focus cities in PHX, LAS, LAX, and OAK. Additional connecting service was available to many other cities across the United States. Plans had been announced for ATA to offer exclusive international service for Southwest by 2010, but were scratched when ATA abruptly ended operations on April 3, 2008. There was no plan to open the ATA/Southwest codeshare to ATA's sister carriers, North American Airlines or World Airways, even though they are co-owned by the same corporate entity created from ATA Holdings.

The ATA/Southwest codeshare was terminated when ATA filed for Chapter 11 bankruptcy on April 3, 2008. As of 4:00 A.M. EDT on April 3, ATA discontinued all operations.[85][dead link] Towards the end of November 2008, Southwest announced it was buying the operating certificate and the remaining assets of ATA Airlines thus enabling Southwest Airlines access to New York LaGuardia slots formerly controlled by ATA. According to Southwest Airlines "...it doesn't include any aircraft, facilities or employees of ATA."[86]

  • WestJet Airlines

On July 8, 2008, Southwest Airlines officially announced the intent to begin a codeshare agreement with WestJet Airlines of Canada, giving the two airlines the ability to sell seats on each other's flights.[87] Originally, the partnership was to be finalized by late 2009, but has been postponed due to economic conditions.[88]

On April 16, 2010, Southwest and WestJet airlines amicably agreed to terminate the implementation of a codeshare agreement between the two airlines.

Fleet

Current fleet

As of September 10, 2010 the Southwest Airlines fleet consists of the following 550 aircraft, all of which are variants of the Boeing 737:[89]

Southwest Airlines fleet
Aircraft Total Orders/Options/
Purchase Rights 		Passengers Notes
Boeing 737-300 175 0/0/0 137 launch customer and largest operator of the variant
newer aircraft being retrofitted with electronic flight decks
Boeing 737-500 25 0/0/0 122 launch customer and 4th largest operator of this variant
Boeing 737-700 350 113/37/98 137 all feature glass cockpit screens for compatibility with analog cockpits
25 orders are to replace older Boeing 737 Classics
launch customer and currently the largest operator of the type

Southwest is working with Row 44 to offer satellite-enabeled broadband access on all its flights and has begun rolling out the In-Flight Wi-Fi service in the first quarter of 2010.

File:Southwest Airlines Cabin.jpg
The interior of a Southwest Boeing 737-700 with the airline's leather seating

The airline operates more Boeing 737s in its fleet than any other airline in the world; Southwest is often cited as an example of an airline streamlining operations by having only one type of aircraft. However, Southwest operated leased 727-200 aircraft during the late-1970s and again in the mid-1980s and subsidiary TranStar Airlines operated DC-9s and MD-80s during the mid-1980s. Southwest has been a launch customer for all three of the Boeing 737 variants it currently operates, and was the first airline to put both the Model 500 and next-generation Model 700 into service. Southwest has a mix of old and new aircraft with both its "classic" and "next generation" 737 aircraft.[90]

As of August 2009, Southwest has an average fleet age of 14.0 years,[91] and each plane flies an average of about 7 flights per day. The average aircraft trip length is 633 miles (1,019 km) with an average duration of one hour and 48 minutes. This means the daily utilization of each plane is, on average, 12 hours and 36 minutes.[35]

Southwest's seats are the same as any other operator of 737s in the United States. The seat pitch averages between 32 and 33 inches (840 mm), which is longer than the average U.S. domestic airlines of 31 to 32 inches (810 mm). Low-fare carrier JetBlue Airways also offers from 34 inches (860 mm) to 38 inches (970 mm).[92] However, seats are approximately one inch narrower than Airbus A320 series operated by low-cost carriers such as Frontier Airlines, JetBlue, Virgin America, USA 3000, and several other competitors.

Southwest's Boeing 737-300 and -500 aircraft are not equipped with glass cockpit technology, as the 737-300s, 737-400s, and 737-500s of some other airlines are (earlier versions also had non-glass cockpits). Instead, the flight decks are fitted with analog gauges, more akin to those of the earlier 737-100 and 737-200 variants. Note the analog attitude indicator (ADI) and horizontal situation indicator (HSI) (the blue-colored instrument and one below it) in this Southwest 737-3H4 and note the electronic versions of the same instruments (EADI and EHSI) in this United Airlines 737-322. There are electronic displays throughout the cockpit of the 737-700 and other "Next Generation" 737 variants, and Southwest has programmed their 737-7H4 models to emulate the appearance of the 737-300 and 737-500 for standardization purposes. All three versions of the Boeing 737 that Southwest operates use (HUD) Heads Up Display in the flight deck. This technology consists of a glass panel which folds down on the Captain's side, and displays primary flight information as a hologram.

Since production of the -300 and -500 variants has ended, recent Southwest orders have been exclusively for the -700 model. Southwest began retiring some older -300 models, beginning in December 2007, reducing its -300 fleet from its original count of 194. However, newer -300 models are being retrofitted with new electronic flight decks. These retrofits will make them compatible in operation with the -700, and will support the airline's move to embrace the Required Navigation Performance initiative; among other advances, these improvements will give the -300 a glass cockpit and allow navigation via the Global Positioning System. Southwest expects substantial cost savings from this initiative.[93]

Southwest is the world's largest operator of the Boeing 737. Their current active fleet consists of over 500 aircraft. In terms of total 737 production (all models in history), deliveries of new aircraft from Boeing to Southwest accounts for approximately 9% of total production[citation needed]. Southwest has one of the largest fleets in North America. Southwest has the 1000th Boeing 737, 2000th Boeing 737 Next Generation and the first of the 500 series.

In August 2010, it was reported that Southwest was evaluating the addition of the Boeing 737-800 to its fleet.[94][95] Southwest states that the 737-800 could possibly give them more scheduling flexibility to allow additional capacity in high-demand, slot-restricted, or gate-restricted airports. A final decision should be made by December 1, 2010, while deliveries of new -800s to the airline would not occur until 2012.

Retired fleet

Southwest Airlines retired fleet
Aircraft Year retired Replacement Notes
Boeing 737-200 2005 Boeing 737-700 Southwest's first aircraft type
Boeing 727-200 Boeing 737-200 Leased from other companies.

Livery

Southwest Boeing 737-300 (N340SW) in the 1971-December 31, 2000 livery
Southwest Boeing 737-300 in the January 1, 2001-present livery
The original blended winglets of Southwest Airlines meet the new, blue variant at Tucson International Airport.
Shamu livery

Southwest's original primary livery was beige and red, with orange on the tail end, and pinstripes of white separating each section of color. The word Southwest appeared in white on the beige portion of the tail. (Although, on the original three 737-200s, from June 1971, on the left side of the plane, the word Southwest was placed along the upper rear portion of the fuselage, with the word Airlines painted on the tail where Southwest is today N21SW. On the right side, the word Southwest was in the same place as today, but also had the word Airlines painted on the upper rear portion of the fuselage.N20SW.

Southwest introduced the Canyon Blue Fleet in 2001, its first primary livery change in its 30-year history. Spirit One was the first plane painted in the color scheme. The new livery replaces the primary beige color with canyon blue and changes the Southwest text and pinstripes to gold. (The orange tail end continues to still be used; there was one model with both liveries combined to celebrate the company's 35th anniversary.) The pinstripe along the plane is drawn in a more curved pattern instead of the straight horizontal line separating the colors in the original. The original livery is gradually being phased out, but three aircraft will remain in the original livery to commemorate Southwest's original three cities. As of November 16, 2007, Southwest had nearly completed updating the fleet.[35]

Southwest's livery designs exploit the aesthetic appeal of blended winglets as well. The first planes to be fitted with the winglets remain in the plain colored winglet (matching the stripes on the fuselage), but later aircraft to be fitted have winglets with "SOUTHWEST.COM" written on them. All aircraft will eventually be repainted to the ".com" winglets. Special livery aircraft with winglets, such as Shamu, have plain white winglets.[35]

Some Southwest planes feature special themes, rather than the normal livery. These theme planes have been given special names, usually ending in "One". Some of the most well-known examples are:

  • Shamu: The three aircraft are painted to look like an Orca, with advertisements for SeaWorld. (N334SW), (N713SW), (N715SW)
    • The first aircraft to be painted in the "Shamu" scheme was N334SW (1988), a 737-300, and it was later followed by N507SW (Shamu II) and N501SW (Shamu III), both 737-500s. Subsequent to the retirement of Southwest's 737-200s, the 737-500s began to stay within a smaller geographic area formerly operated by the 737-200s, and as such, Sea World was no longer getting the optimal national exposure from these two aircraft. Two 737-700 aircraft, N713SW and N715SW, were repainted as the new Shamu aircraft, and both N501SW and N507SW were eventually repainted in Canyon Blue colors. All three current Shamu aircraft are no longer referred to as Shamu I, II, or III. The artwork on the nose of each aircraft simply states "Shamu". The overhead bins on the -700 series aircraft display ads for Sea World, except towards the front and back of the airplane, where the bins get smaller and are no longer uniform.
  • The Spirit of Kitty Hawk: (1984) Livery and title introduced the first three Boeing 737-300 aircraft to the Southwest Airlines fleet. (N300SW) is the oldest 737-300 in Southwest's fleet, followed by sister ships (N301SW) and (N302SW).
  • Lone Star One: (1990) The flag of the state of Texas applied across the aircraft. (N352SW)
  • Arizona One: (1994) The flag of the state of Arizona applied across the aircraft. (N383SW)
  • The June M. Morris: (1994) In honor of June Morris, Signature and Morris Air logo on the nose. Logo removed for Canyon Blue repaint. (N607SW, Original, Canyon Blue)
  • California One: (1995) The flag of the state of California applied across the aircraft. (N609SW)
  • Silver One: (1996) 25th Anniversary aircraft. Originally polished bare metal, it was later painted silver for easier maintenance. It was then re-painted with a silver metallic paint. This aircraft also featured silver seats, which were replaced to conform with the rest of the fleet for simplicity. Silver One also featured silver heart shaped drink stirrers. Most recently Silver One was repainted in the fleet standard Canyon Blue theme due to the silver paint looking dingy and the company felt it didn't fit the companies cheerful, bright personality. The Silver One nose logo remained but the interior was replaced with the fleet standard blue and tan. (N629SW, Original, Silver Paint, Canyon Blue)
  • Triple Crown One: (1997) Livery dedicated to the employees of Southwest, in recognition of Southwest receiving five Triple Crown airline industry awards (best on-time record, best baggage handling, and fewest customer complaints). The overhead bins in Triple Crown One one are inscribed with the names of all employees that worked for Southwest at the time, in honor of their part in winning the award.(N647SW)
  • Nolan Ryan Express: (1998) Commemorative sticker dedicated to famous Texas pitcher Nolan Ryan who is MLB's all-time strikeout leader with 5,714 strikeouts. (N742SW)
  • Nevada One: (1999) The flag of the state of Nevada applied across the aircraft. (N727SW)
  • New Mexico One: (2000) The flag of the state of New Mexico applied across the aircraft. (N781WN)
  • Spirit One: (2001) 30th Anniversary aircraft. (First Aircraft in New Canyon Blue paint scheme) (N793SA)
  • The Spirit of Hope: (2004) Dedicated to the Ronald McDonald House. Overhead bins are covered in artwork from kids at a Ronald McDonald House in Washington State. (N443WN), (The overhead bins)
  • Maryland One: (2005) The flag of the state of Maryland applied across the aircraft. (N214WN)
  • Slam Dunk One: (2005) Basketball superimposed on side of aircraft and a different NBA team logo on each overhead bin in the cabin, recognizing Southwest's partnership with the National Basketball Association. (N224WN)
  • Illinois One: (2008) The flag of the state of Illinois applied across the aircraft. (N918WN)
  • Southwest received both the 5,000th 737 produced (February 13, 2006) (N230WN) and the 2,000th "Next Generation" 737 produced (July 27, 2006) (N248WN). The 2,000th "Next Generation" 737 is marked as such in its livery, though the 5,000th 737 is not similarly marked on the outside. It does have a placard stating that it is the 5000th 737 on the upper part of the inside entry door frame.
  • Southwest received their 500th 737 on June 28, 2007. This aircraft is marked to honor this milestone. (N281WN)
  • Tinker Bell One: (2008) Includes the logo of the Tinker Bell movie and a sticker featuring the phrase "Powered by Pixie Dust" (N912WN)
  • Sports Illustrated: (2009) A large decal of Sports Illustrated Swimsuit Edition Cover Model Bar Refaeli adorns the fuselage of N922WN . However on June 16, 2009 this aircraft was photographed in full canyon blue on a photo posted on airliners.net (N922WN) [96]
  • Florida One: (2010) The flag of the state of Florida applied across the aircraft. (N945WN).[97]
  • Although not in a special livery, Southwest operates the very first 737-700 ever built. (N707SA).

All special planes prior to Spirit One originally wore the standard beige, red and orange livery colors on the vertical stabilizer and rudder. Subsequent special editions—Maryland One, Slam Dunk One, etc. so far—feature tails with the canyon blue color scheme, and all earlier specials, with the exception of Triple Crown One, have been repainted to match.

Services

Southwest experience

Prior to the 2000s, Southwest served smaller meals than the meals served by full service airlines, with shorter flights receiving single small snacks and soft drinks, and longer flights (with a duration of about 3 hours or more) meriting "Snack Packs" of prepackaged goods. In the 2000s these meals in a bag typically exceed the food served on full-service airlines like United Airlines or American Airlines.[citation needed] Southwest also offers free in-flight beverages (excluding alcohol). There is no in-flight entertainment. Southwest is known for colorful boarding announcements and crews that burst out in song. The singing is unusual, and is quite popular among passenegers, but has been noted by some travel critics as being offensive and intrusive.[98]

Southwest maintained excellent customer satisfaction ratings; in 2006, according to the Department of Transportation December year end operating statistics, Southwest ranked number one (lowest number of complaints) of all U.S. airlines for customer complaints, with 0.18 per 100,000 passenegers enplaned. Southwest Airlines has consistently received the fewest ratio of complaints per passengers boarded of all major U.S. carriers that have been reporting statistics to the Department of Transportation (DOT) since September 1987, which is when the DOT began tracking Customer Satisfaction statistics and publishing its Air Travel Consumer Report.

In July 2010, it became widely public that Southwest had classified mechanical difficulties as an act of God in their contract of carriage, a definition not shared with major competitors such as Delta, American, Continental and United.[99] By doing so, Southwest is under no obligation to provide passengers compensation for "any type of special, incidential or consequential damages" and limits their recourse to receiving a refund of the used portion of their tickets. According to a Southwest spokesman, the airline will still assist affected passengers "just as in the past."[99]

Wi-Fi

After an initial testing phase that began in February 2009, Southwest announced on August 21, 2009 that it will begin rolling out in-flight wi-fi service throughout its fleet in the first quarter of 2010. Southwest has contracted Row 44 to offer satellite-enabled broadband access on its flights.[100]

Incidents and accidents

Southwest Airlines Flight 1248 runway overrun at Chicago Midway International Airport

Southwest Airlines has not had any passenger deaths on any of its planes in its history, but has had eight incidents/accidents with one hull-loss and two deaths on the ground.

Wikinews has related news:

See also

References

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  2. ^ a b Southwest Airlines Company (LUV) annual SEC balance sheet filing via Wikinvest
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