Hi JB,
Thanks so much for your response, but Stanley is right, we never flew the Fairchild F-27 (the American liscense built version of the Fokker F27). In fact, we have only flown two types of aircraft in our 40 years of operation--the 737 and for a short time on two occasions the 727. Actually, Southwest has never flown an airplane with a propellor. You may be thinking of Pacific, West Coast, or Bonanza Airlines, which merged into Airwest, later becoming Hughes AirWest. Ozark and Piedmont also flew the F-27.
Brian
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Most airline geeks know that the 737-700 was the first of Boeing’s Next Generation (NG) 737s to enter service. The -600, -700, -800, and -900 represent major improvements in range, emissions, and carrying capacity over the Classic Generation’s -300, -400, and -500 aircraft. In turn, the Classics were a quantum leap over the two Originals models, the 737-100 and the 737-200. Southwest Airlines was the first airline to operate a Classic Generation 737 in scheduled service when we introduced the 737-300, and the occasion was a huge deal with Bob Hope heading a big party, and General Chuck Yeager flying on the first flight the next day. The first 737-300 was christened The Spirit of Kitty Hawk because it flew on December 17, 1984, the 81 st anniversary of the Wright Brothers’ first flight. We also introduced the 737-500 into scheduled airline service in 1990.
Given our close association with the 737, it’s no wonder that we introduced the 737-700 and the NG line of aircraft into service. On July 14, 1997, one of the test aircraft, N709GS (above), was parked at our Dallas Maintenance Base, and Employees could tour the new aircraft and get a taste of the future. The tests operated simulated schedules over much of the Southwest system to give our Employees firsthand experience with the new airplane.
However, the first revenue flight was a very low key affair with no publicity. This is a bit surprising, given the celebration we gave the 737-300. This is especially so when you consider that, for Southwest, the introduction of the 737-700 required new interiors, new training procedures for all operating departments, new scheduling possibilities, and months of testing. Yet, given all that, the 737-700 basically snuck into service on January 18, 1998. N700GS sits (above) at the gate waiting for the ground crew to load the first bags.
No company photographers were there that morning to record the first flight, although fellow blogger Bill Owen joined me on the ramp prior to pushback. This photo represents the "old" and the "new" of 737s. Behind N700GS, a 737-300, N651SW taxies away from the gate. This photo freezes a seminal transition point in air travel. The 737-300 reigns supreme, at least for a few minutes more.
After Bill and the other first-flight Passengers head upstairs and settle in for departure, I am the only photographer left on the ramp to document the departure of Flight #11 to Houston Hobby and Harlingen. The picture above is the first revenue pushback of a NG 737.
The tow bar is disconnected, Captain Greg Crum powers up the engines, and Flight #11 heads off for the runway. If our collective memory serves correctly, Captain Milt Painter, who was the lead Pilot on flight testing and designing the training curriculum, was the flight's First Officer. A new air travel era begins just that quickly as a new airplane is about to enter the sky. My camera and I are the only observers of this landmark event for commercial aviation, Boeing, and Southwest Airlines.
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DALLAS, Feb. 8, 2011 /PRNewswire via COMTEX/ --
Southwest Airlines (NYSE: LUV) announced today that more than 60 nonprofit hospitals and charities from across the nation will be participants in its Medical Transportation Grant Program this year. Children's Hospital of Wisconsin near Milwaukee is one of those recipients.
Southwest has nearly doubled the grant program's 2011 budget with hopes of assisting more than 5,500 patients and family members with their medical-related travel needs.Through the Southwest Airlines Medical Transportation Grant Program, the airline provides complimentary, roundtrip tickets to hospitals and medical transportation nonprofit organizations. The tickets are distributed by the organizations to deserving patients and their caregivers who must travel for medical care.
Children's Hospital of Wisconsin, located near Milwaukee, is one of the leading centers for pediatric health care in the United States. The hospital provides inpatient care, including transport of critically ill or injured children and intensive care services, and more than 70 specialty outpatient clinics that care for the full range of pediatric health care needs.
"Through its generous donation, Southwest Airlines is making it possible for dozens of families to receive world-class care at one of the nation's top-ranked pediatric hospitals," said Maggie Butterfield, director of Patient Amenities and Family Services at Children's Hospital of Wisconsin.
"The feedback we receive from families who benefit from the Medical Transportation Grant Program reaffirms for us that we are meeting a great need during what can be a difficult time in these families' lives," said Debra Benton, Southwest Airlines Director of Community Relations and Charitable Giving. "Southwest is proud to be able to provide this program to even more nonprofit hospitals and charities as support for families affected by serious illness."
Only 501(c) 3 qualified hospitals and organizations are eligible for the program. To see a full list of recipients, please visit: www.southwest.com/cares. To learn qualifications for travel assistance through the designated organizations, please contact the Social Work, Travel/Concierge Service, or Patient Assistance Department directly at each location, which each have unique guidelines for administration of tickets.
About Southwest Airlines
In its 40th year of service, Southwest Airlinescontinues to differentiate itself from other low-fare carriers--offering a reliable product with exemplary Customer Service. Southwest Airlines serves Milwaukee with 12 daily departures and is the nation's largest carrier in terms of originating domestic passengers boarded, now serving 69 cities in 35 states. Beginning March 13, 2011, Southwest will initiate service to Charleston and Greenville/Spartanburg, South Carolina, and on March 27, 2011, service will begin to Newark Liberty International Airport. Southwest also is one of the most honored airlines in the world known for its commitment to the triple bottom line of Performance, People, and Planet. To read more about how Southwest is doing its part to be a good citizen, visit southwest.com/cares to read the Southwest Airlines One Report(TM). Based in Dallas, Southwest currently operates more than 3,100 flights a day and has nearly 35,000 Employees systemwide.
SOURCE Southwest Airlines
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We’re always looking for creative ways to celebrate our Anniversaries, and in the early years, those celebrations featured our Flight Attendants. Actually, back then, they were called “Hostesses.” The two pictures I have this month represent a difference of nine years. The black and white photo below was taken at the first birthday party in June 1972. Southwest had managed to survive a whole year, and while the future was still very shaky, it was time to party. Our Hostesses put on a song and dance number, wearing their trademark hot pants and go-go boots. Nine years later on our tenth birthday in June 1981, Southwest was a very different Company, and the birthday photo below reflects that. Featured in the photo are 11 of the original Flight Attendants hired in June 1971 who were still with us ten years later. No hot pants in this photo, but we still see the hearts and “Love” theme that even today sustain us. While the attire of these original Employees reflects a new corporate maturity, there were also a lot of other changes. During the 70s, Southwest expanded as far as we could in Texas to ten cities from El Paso to Houston and Amarillo to Harlingen. Thanks to the Airline Deregulation Act of 1978, Southwest was no longer bound by the borders of our home state. First, we expanded to New Orleans in early 1979, and then in 1980, we opened Oklahoma City, Tulsa, and Albuquerque, on consecutive days in April. A few months after this photo, we would expand further west to San Diego, Las Vegas, and Phoenix on January 1, 1982, then to Los Angeles on September 18, 1982. We also added Kansas City that same year. In roughly the ten years since the first photo, we flew to almost as many cities outside of Texas (nine) as in (ten). I guess that every picture does tell a story, and I love looking at these early historical photos from two perspectives. One is the literal story they tell of our history, and the other perspective is what the photos represent about our growth and how we changed as a Company and how we changed air travel. These two photos with many of the same People are truly a tale of two Companies.
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Raphael,
I do know that PSA in California used to turn aircraft very quickly, but I don't know that they got it down to ten minutes.
EP,
The World case in DaNang is a lot different. It wasn't a quick turn and they were trying to control the number of refugees on board. They quickly lost control and had to take off from a taxiway. The ventral stair was kept lowered all the way to Saigon because people were clinging to it. also, the gears were left down because so many people were trying to ride there. I've read estimates that about 320 people were on the aircraft, which was a short-bodied 727.
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DALLAS, Jan. 28, 2011 /PRNewswire via COMTEX/ —
Southwest Airlines Co. (NYSE: LUV) has been invited to speak at the Raymond James Global Airline Conference. Raymond James will be webcasting the audio presentation live, and a link to the webcast will be made available via the Investor Relations homepage on the Southwest Airlines website. Details of the audio webcast are as follows:
Date:
Thursday, February 3, 2011
Time:
10:10 a.m. Eastern Time
Speaker:
Laura Wright, Senior Vice President Finance and Chief Financial Officer
Web Address:
www.southwest.com/investor_relations
Contact:
Investor Relations (214) 792-4415
To access the live audio webcast on the Investor Relations homepage, go to www.southwest.com and click on “Investor Relations” under the “About Southwest” menu at the bottom of the page. Upon completion of the live audio webcast, a replay of the Southwest Airlines presentation will be available on the Events Calendar in the Investor Relations section of www.southwest.com.
Minimum Requirements to listen to broadcast:
Windows Media Player software, downloadable free from http://www.microsoft.com, and at least a 56K bps connection to the Internet. If you experience problems listening to the webcast, click on “Online Help” in the webcast browser.
SOURCE Southwest Airlines Co.
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Thu, Jan 27, 2011
DALLAS, Jan. 27, 2011 /PRNewswire via COMTEX/ --
Southwest Airlines' (NYSE: LUV) Board of Directors declared a quarterly dividend of $.0045 per share to Shareholders of record at the close of business on March 3, 2011 on all shares then issued and outstanding. The 138th consecutive dividend will be paid on March 24, 2011.
SOURCE Southwest Airlines
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Paula and Angela, you two flatter me, and we shared some incredible, improbable memories. If ever there were two uncloneable people, it is you. You are visionaries, and I am so excited about Christi's and Brook's vision and energy for the blog. I've always said this is a living thing, and it needs to be nourished and challenged, and they are doing just that--and stay tuned Chris Ronan and the RD2 Team have outdone themselves.
Erin, it is great to hear from you--hope all is well.
Stuart thanks for the kind words.
Stove, yes he is!
Jazzy, hope all is well with your studies, and thanks for your support over the years.
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Age five in blog age is probably like 15 years in dog age or maybe like age 40 in Southwest years. I’ve been around Nuts About Southwest for all five of those blog years, so on the eve of the debut of our new blog platform, I thought we could flashback through the history of this blog. In late 2005, Angela Vargo, who is now in Marketing, asked me to be part of a communication group looking at the ramifications of developing a corporate blog. Linda Rutherford, who was then Vice President of Public Relations, knew that folks were talking about Southwest online, and she wanted us to have our own blog home so we could enter the conversation. Back then, only wide-eyed revolutionaries and the entire population of Silicon Valley had blogs. We were one of the first Fortune 500 Companies to have a blog, and the blogosphere was very different then. After the planning, I got drafted to work on the day to day publication of Nuts. We put up our first post on April 21, 2006, and it was one I had written explaining why we were joining the conversation. Then Angela and I waited for our first comment. A few hours later, the first comment was on the moderation queue. I opened up the comment to read our first reader thought. With much anticipation, two words sprang forth. The first was the same ancient Saxon verb that caused Ralphie so much trouble in A Christmas Story, and the second was a three-letter personal pronoun. Thankfully, less vengeful, more appropriate comments soon followed. This was before FaceBook’s widespread use and the rise of twitter. We had regular readers who would communicate with other readers in the comments section, often writing with little relationship to the topic of the post. At least two of those early regulars are now Southwest Employees. Our original Blog Team was kind of like Rock Stars, and they built a personal following of fans. Soon Angela moved to Marketing, and Paula Berg became my blog partner. Paula helped spearhead our “2.0” platform which carried us and our words and visuals from May 2008 until today. During those five years, we have had some unique, even amazing blog posts. The funniest one has to be from Bill Owen in Network Planning. What would you do if you woke up to find a dead squirrel in your toilet? Click here to see Bill’s solution. Of course, this post doesn’t directly relate to Southwest, but Bill takes care of that with his authoritative posts about all things schedules. Like all of Southwest Airlines, we LUV to celebrate holidays here at Nuts About Southwest. One of the most moving posts we have published comes from Casey Welch on our Community Relations Team. Click here and have some tissues handy. And, how about the early post on bees that got picked up by The Wall Street Journal? Click here to read Gordon Guillory’s report about how his Maintenance Coworkers solved the bee problem. If you are “eat up” with the aviation bug like I am, reading Captain Ray Stark’s posts are just the ticket to get you up front on the flight deck. Here’s a sample of one of his trip reports from 2007. One of our earliest supporters was Colleen Barrett, and she was a semi-frequent poster. Colleen used the blog upon the occasion of her announcing that she was stepping back from her role as President. And our CEO, President, and Chairman, Gary Kelly has used the blog to post about serious issues, but equally well read are his posts seeking advice on his Halloween persona. With Gary, Halloween is more than costumes, it’s acting. This edition of Flashback Fridays marks our one-year anniversary. The first Flashback Friday had photos of our early aircraft interiors and it debuted on January 15 last year With two or three posts being published daily, we can only hit the very top of the highlights from the past five years. This blog really has a life of its own, and I have been proud to be its caretaker for the past five years. Like all of us, it has changed over that time period. Paula has moved on to the mountains of Colorado, and Christi McNeill has led us through this newest social media revolution with twitter, Facebook, and geo-locating sites. Many of our original Blog Team have moved onto new work areas or have experienced life changes which limit the time they can devote to blogging. You’ve probably noticed another new name on the blog, and that is Brooks Thomas. Brooks has impeccable taste in institutions of higher learning, and he’s done a lot of the heavy lifting in forming a new Blog Team who will continue to provide interesting, compelling, and timely content for you. Our new Team is geographically and departmentally diverse, much like our original, Alumni Team. Some of our originals will continue to be part of the new team—you never can tell when another dead mammal might cozy up in your toilet. And I’ll be back here next week with another Flashback Friday.
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DALLAS, Jan. 20, 2011 /PRNewswire via COMTEX/ -- Southwest Airlines (NYSE: LUV) today reported its fourth quarter and full year 2010 results. Net income for fourth quarter 2010 was $131 million, or $.18 per diluted share, compared to $116 million, or $.16 per diluted share, for fourth quarter 2009. Both periods' results included special items primarily related to non-cash, mark-to-market, and other items associated with a portion of the Company's fuel hedge portfolio. In addition, fourth quarter 2010 results included approximately $3 million in charges (net of profitsharing and taxes) primarily related to consulting and legal fees in connection with the proposed acquisition of AirTran Holdings, Inc.* Excluding special items for both periods, fourth quarter 2010 net income was $115 million, or $.15 per diluted share, compared to $74 million, or $.10 per diluted share, for fourth quarter 2009. This was in line with Thomson's First Call mean estimate of $.15 per diluted share for fourth quarter 2010. Additional information regarding special items is included in this release and in the accompanying reconciliation tables. For the full year 2010, net income was $459 million, or $.61 per diluted share, compared to $99 million, or $.13 per diluted share, for full year 2009. In addition to full year 2010 results including charges related to the proposed acquisition of AirTran Holdings, Inc.*, and both years' results including special items primarily related to fuel hedging, full year 2009 results included a $35 million charge (net of profitsharing and taxes) relating to the Company's 2009 voluntary early-out program. Excluding these special items for both years, full year 2010 net income was $550 million, or $.74 per diluted share, compared to $143 million, or $.19 per diluted share, for full year 2009. Gary C. Kelly, Chairman of the Board, President, and Chief Executive Officer, stated: "I commend our People for their perseverance, persistence, and resolve. Because of them, we emerged from the worst decade in aviation history without losses, without furloughs, and without degradation of our Customer experience. And, 2010 marked our 38th consecutive year of profitability, a tremendous feat unmatched in the aviation industry. "Our fourth quarter 2010 net income, excluding special items, improved 55 percent from fourth quarter 2009. We produced record fourth quarter operating revenues of $3.1 billion, which also was an all-time quarterly record on an available seat mile basis at 12.56 cents. December passenger unit revenues increased approximately five percent year-over-year. Thus far in January, booking and revenue trends suggest similar year-over-year improvement in January versus December 2010. Bookings in place for the remainder of the first quarter also are strong." Fourth quarter 2010 unit costs, excluding special items, increased 7.6 percent from fourth quarter 2009, largely due to the 12.7 percent increase in economic fuel costs per gallon to $2.48. Fourth quarter 2010 economic fuel costs included $14 million, or $0.04 per gallon, in unfavorable cash settlements for fuel derivative contracts. Based on the Company's first quarter 2011 fuel hedge position and market prices (as of January 18th), first quarter 2011 economic fuel costs, including fuel taxes, are estimated to be approximately $2.80 per gallon. Additional information regarding the Company's fuel derivative contracts is included inthe accompanying tables. Excluding fuel and special items in both periods, fourth quarter 2010 unit costs increased 5.8 percent from fourth quarter 2009, as expected. Based on current cost trends and capacity plans, the Company expects its first quarter 2011 nonfuel unit costs to increase at a lower year-over-year rate than experienced in fourth quarter 2010. Kelly stated, "Given the slow economic recovery and volatile fuel environment in 2010, we continued our disciplined strategy of strengthening our network through optimization. This allowed us to bring Southwest's legendary low fare service to Panama City Beach, Florida in 2010, and grow key markets like Denver, Boston, and St. Louis, with virtually no seat mile growth for the year. Absent the acquisition of AirTran*, we currently have no plans to grow our fleet significantly until we reach our profit target and achieve a 15 percent pretax return on invested capital." The Company recently revised its Boeing delivery schedule, resulting in three additional aircraft to be delivered in 2011. The Company now has 19 Boeing 737-700 aircraft scheduled for firm delivery in 2011, and 20 Boeing 737-800s scheduled for firm delivery in 2012. In 2011*, available seat miles are estimated to increase in the five to six percent range from 2010, unchanged from previous forecasts. The revised 737 Delivery Schedule is included inthe accompanying tables. "As we begin our fifth decade of operations, we have bold aspirations to be the best in every way possible," continued Kelly. "We are confident in our ability to deliver, based on existing competitive strengths including: low cost, low fare Leadership; outstanding Customer Service; excellent operations; America's largest mainline route network; and a strong financial position. These strengths have earned us record-setting revenue production; industry-leading Customer Service rankings; the world's largest all-Boeing fleet; and the most domestic Customers of any airline (based on originating passengers boarded). "We have significant revenue initiatives underway to close the gap between our current profit performance versus our target. First and foremost, we are committed to our proposed acquisition of AirTran*, which is expected to yield significant net annual synergies of more than $400 million by 2013. "We were thrilled to recently announce the March 1, 2011 launch of our All-New Rapid Rewards program, many years in the making. We believe the new frequent flyer program offers substantial improvements for our Members, and has the potential to contribute hundreds of millions in incremental net revenues over the next several years. "Introducing the larger Boeing 737-800 into our fleet in 2012 brings many more exciting destinations into the realm of possibilities for the Southwest network. On long-haul, high-demand routes, the economics favor the -800 versus the -700, producing lower unit costs. It also offers better scheduling flexibility in high-demand, slot-controlled, or gate-restricted markets. "Finally, we have begun the multi-year process of replacing our reservation system to pave the way for international destinations, along with other Customer Service and revenue enhancements. "In addition to these four significant initiatives, we continue efforts to implement enhancements to Revenue Management, rollout inflight internet connectivity, and implement Required Navigation Performance (RNP). Also, we are very excited to launch service to Greenville-Spartanburg and Charleston, South Carolina, and Newark, New Jersey in March 2011. "We have a lot of work in front of us. But, without a doubt, we have proven our ability to successfully manage change. Our Employees deserve all the credit. Truly, they are our greatest strength." 2010 Southwest Airlines recognitions and honors include: Named the top U.S. Airline on the University of Michigan's American Customer Satisfaction Index (ASCI) Recognized as the twelfth most admired Company in the world by FORTUNE magazine; the only U.S. airline to make this list of the World's Top 50 Most Admired Companies Ranked seventh among the top ten companies in MSN Money's 2010 Customer Service Hall of Fame Honored by Executive Travel Magazine and their 2010 Leading Edge Awards as the best North American Low Cost Carrier for its outstanding Customer Service Named Best Low-Cost Carrier in North America by Business Traveler Magazine Recognized as the Best Domestic Value, Best Luggage Policy, Best Check-in Experience, Top Website, and Best Consumer On-Time Estimates in the 2010 Airline Survey conducted by Zagat Named Favorite Domestic Airline and recognized as having the friendliest domestic flight crews in the 2010 Reader's Choice Awards by SmarterTravel.com Ranked second in the Glassdoor.com Employee Choice Awards for Best Places to Work; the only airline to make the list Ranked in the top 150 in Newsweek's 2010 Green Rankings of the largest publicly traded companies in the U.S. Named to the annual ranking of the Top 50 Most Socially Responsible Companies in the U.S. by the Boston College Center for Corporate Citizenship and The Reputation Institute; the only airline to make the list Received The Williams Trophy from the Washington Airports Task Force for its commitment to training Pilots and retrofitting aircraft for Required Navigational Performance, the cornerstone of the Next Generation Air Traffic Control system Received a near-perfect score on the Human Rights Campaign Foundation's ninth annual Corporate Equality Index Survey, which grades U.S. employers on categories such as nondiscrimination policies, training, Employee benefits, Employee support through diversity councils, and marketing Selected by G.I. Jobs magazine as one of the nation's Top Military Friendly Employers Awarded the Quest for Quality Award by Logistics Management magazine, the 14th consecutive year for Southwest Airlines Cargo to receive the recognition; also received top honors in critical categories, such as Customer Service, Ontime Performance, Value, Information Technology, and Equipment and Operations Southwest Cargo was named Airline of the Year by Express Delivery and Logistics Association for the sixth consecutive year Nuts About Southwest was inducted into the Hall of Fame at the PRNews Platinum PR Awards, recognizing Southwest's initiatives that have set high benchmarks for originality and execution Southwest will discuss its fourth quarter and full year 2010 results on a conference call at 12:30 p.m. Eastern Time today. A live broadcast of the conference call will be available at southwest.com. Operating Results Total operating revenues for fourth quarter 2010 increased 14.8 percent to $3.1 billion, compared to fourth quarter 2009, while fourth quarter 2010 total operating expenses increased 13.9 percent to $2.9 billion.Operating income for fourth quarter 2010 was $216 million, compared to operating income of $167 million in fourth quarter 2009.Excluding special items, operating income increased 32.8 percent to $263 million in fourth quarter 2010, compared to $198 million in fourth quarter 2009. Operating revenues for the year ended December 31, 2010, increased 16.9 percent to $12.1 billion compared to full year 2009, while full year 2010 operating expenses increased 10.2 percent to $11.1 billion. Operating income for 2010 was $988 million, compared to $262 million in 2009.Excluding special items, operating income for 2010 was $1.2 billion, compared to $540 million in 2009.The Company's return on invested capital (before taxes and excluding special items) was approximately 10 percent for the twelve months ended December 31, 2010, compared to approximately five percent for the same period in 2009.Additional information regarding pretax return on invested capital is included in the accompanying reconciliation tables. Other expenses were $243 million for the year ended December 31, 2010, compared to $98 million for the same period in 2009.This $145 million increase in other expenses primarily resulted from a $160 million unfavorable swing in other (gains) losses, net.Other losses of $106 million were recognized in 2010, compared to $54 million in other gains in 2009, primarily resulting from unrealized gains/losses associated with fuel derivative contracts.Premium costs associated with the Company's fuel derivative contracts of $134 million in 2010 and $148 million in 2009 were also included in other (gains) losses, net. Net interest expense decreased $15 million primarily due to lower market interest rates. Net cash provided by operations for 2010 was $1.6 billion, substantially driven by the $459 million in net income, and $628 million in non-cash depreciation and amortization expense. Capital expenditures for 2010 were $493 million.The Company repaid $155 million in debt during 2010, and is scheduled to repay approximately $500 million in current maturities of long-term debt in 2011.As of January 18th, the Company had approximately $3.8 billion in cash and short-term investments. In addition, the Company has a fully available, unsecured, revolving credit facility of $600 million. * The closing of the Company's proposed acquisition of AirTran is still subject to the approval of AirTran stockholders, receipt of Department of Justice and certain other regulatory clearances, and fulfillment of customary closing conditions. Estimated fuel consumption and estimated available seat miles for 2011 and beyond excludes any potential impact of the acquisition. The Company currently expects to close the transaction in the second quarter of 2011. Important Information for Investors and Stockholders Communications in this press release do not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. The proposed acquisition of AirTran Holdings, Inc. ("AirTran") by Southwest Airlines Co. ("Southwest") will be submitted to the stockholders of AirTran for their consideration. In connection therewith, Southwest has filed a registration statement on Form S-4 with the Securities and Exchange Commission (the "SEC") thatincludes a proxy statement of AirTran that also constitutes a prospectus of Southwest. Southwest and AirTran also plan to file other documents with the SEC regarding the proposed transaction. SOUTHWEST URGES INVESTORS AND SECURITY HOLDERS OF AIRTRAN TO READ THE PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY AS THEY BECOME AVAILABLE BECAUSE THEYCONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and security holders may obtain free copies of the proxy statement/prospectus and other documents containing important information about Southwest and AirTran, as such documents are filed with the SEC, through the website maintained by the SEC at http://www.sec.gov/. Copies of the documents filed with the SEC by Southwest are available free of charge on Southwest's website at http://www.southwest.com/ under the tab "Investor Relations" or by contacting Southwest's Investor Relations Department at (214) 792-4415. Copies of the documents filed with the SEC by AirTran are available free of charge on AirTran's website at http://www.airtran.com/ under the tab "Investor Relations" or by contacting AirTran's Investor Relations Department at (407) 318-5188. Southwest, AirTran and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from the stockholders of AirTran in connection with the proposed transaction. Information about the directors and executive officers of Southwest is set forth in its proxy statement for its 2010 annual meeting of shareholders, which was filed with the SEC on April 16, 2010. Information about the directors and executive officers of AirTran is set forth in its proxy statement for its 2010 annual meeting of stockholders, which was filed with the SEC on April 2, 2010. These documents can be obtained free of charge from the sources indicated above. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, is contained in the proxy statement/prospectus and other relevant materialsfiled with the SEC. Cautionary Statement Regarding Forward-Looking Statements This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Specific forward-looking statements include, without limitation, statements related to (i) the Company's financial targets and outlook; (ii) its plans and expectations related to managing risk associated with changing jet fuel prices; (iii) its growth strategies and expectations, including fleet, network, and capacity plans and expectations; (iv) its strategic initiatives and the expected impact of the initiatives on its results of operations and its customer experience, offerings, and benefits; and (v) its expectations related to its proposed acquisition of AirTran. These forward-looking statements are based on the Company's current intent, expectations, and projections and are not guarantees of future performance. These statements involve risks, uncertainties, assumptions, and other factors that are difficult to predict and that could cause actual results to vary materially from those expressed in or indicated by them. Factors include, among others, (i) changes in the price of aircraft fuel, the impact of hedge accounting, and any changes to the Company's fuel hedging strategies and positions; (ii) the impact of the economy on demand for air travel and fluctuations in consumer demand generally for the Company's services; (iii) the impact of fuel prices and economic conditions on the Company's overall business plan and strategies; (iv) actions of competitors, including without limitation pricing, scheduling, and capacity decisions, and consolidation and alliance activities; (v) the Company's ability to timely and effectively implement, transition, and maintain the necessary information technology systems and infrastructure to support its operations and initiatives; (vi) the Company's dependence on third parties to assist with implementation of certain of its initiatives; (vii) the impact of governmental regulations on the Company's operations; (viii) the possibility that the Company's proposed acquisition of AirTran is delayed or does not close, including due to the inability of Southwest and AirTran to obtain all approvals necessary or the failure of other closing conditions; (ix) the Company's ability to successfully integrate AirTran's business and realize the expected synergies from the transaction; and (x) other factors, as described in the Company's filings with the Securities and Exchange Commission, including the detailed factors discussed (i) under the heading "Risk Factors" in both the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2009 and the Company's Registration Statement on Form S-4 filed with the Securities and Exchange Commission on November 19, 2010; and (ii) under the heading "Forward-looking statements" in the Company's Quarterly Reports on Form 10-Q for the quarters ended March 31, 2010, June 30, 2010, and September 30, 2010. SOUTHWEST AIRLINES CO. CONDENSED CONSOLIDATED STATEMENT OF INCOME (in millions, except per share amounts) (unaudited) Three Months Ended Year Ended December 31, December 31, Percent Percent 2010 2009 Change 2010 2009 Change OPERATING REVENUES: Passenger $ 2,945 $ 2,584 14.0 $ 11,489 $ 9,892 16.1 Freight 32 31 3.2 125 118 5.9 Other 137 97 41.2 490 340 44.1 Total operating revenues 3,114 2,712 14.8 12,104 10,350 16.9 OPERATING EXPENSES: Salaries, wages, and benefits 955 861 10.9 3,704 3,468 6.8 Fuel and oil 940 794 18.4 3,620 3,044 18.9 Maintenance materials and repairs 195 162 20.4 751 719 4.5 Aircraft rentals 45 46 (2.2) 180 186 (3.2) Landing fees and other rentals 201 182 10.4 807 718 12.4 Depreciation and amortization 160 154 3.9 628 616 1.9 Other operating expenses 402 346 16.2 1,426 1,337 6.7 Total operating expenses 2,898 2,545 13.9 11,116 10,088 10.2 OPERATING INCOME 216 167 29.3 988 262 n.a. OTHER EXPENSES (INCOME): Interest expense 41 46 (10.9) 167 186 (10.2) Capitalized interest (4) (5) (20.0) (18) (21) (14.3) Interest income (3) (3) - (12) (13) (7.7) Other (gains) losses, net (31) (56) (44.6) 106 (54) n.a. Total other expenses (income) 3 (18) (116.7) 243 98 148.0 INCOME BEFORE INCOME TAXES 213 185 15.1 745 164 n.a. PROVISION FOR INCOME TAXES 82 69 18.8 286 65 n.a. NET INCOME $ 131 $ 116 12.9 $ 459 $ 99 n.a. NET INCOME PER SHARE: Basic $ .18 $ .16 $ .62 $ .13 Diluted $ .18 $ .16 $ .61 $ .13 WEIGHTED AVERAGE SHARES OUTSTANDING: Basic 747 742 746 741 Diluted 750 742 747 741 SOUTHWEST AIRLINES CO. RECONCILIATION OF REPORTED AMOUNTS TO NON-GAAP ITEMS (SEE NOTE REGARDING USE OF NON-GAAP FINANCIAL MEASURES) (in millions, except per share amounts) (unaudited) Three Months Ended Year Ended December 31, December 31, Percent Percent 2010 2009 Change 2010 2009 Change Fuel and oil expense - unhedged $ 886 $ 721 $ 3,296 $ 2,577 Add/(Deduct): Fuel hedge losses included in fuel and oil expense 54 73 324 467 Fuel and oil expense - as reported $ 940 $ 794 $ 3,620 $ 3,044 Add/(Deduct): Net impact from fuel contracts (1) (40) (31) (172) (222) Fuel and oil expense - economic $ 900 $ 763 18.0 $ 3,448 $ 2,822 22.2 Total operating expenses, as reported $ 2,898 $ 2,545 $ 11,116 $ 10,088 Add/(Deduct): Net impact from fuel contracts (1) (40) (31) (172) (222) Total operating expenses, economic $ 2,858 $ 2,514 $ 10,944 $ 9,866 Add: Charge for AirTran integration costs, net (2) (7) - (7) - Add: Charge from voluntary early out program, net (2) - - - (56) Total operating expenses, non-GAAP $ 2,851 $ 2,514 13.4 $ 10,937 $ 9,810 11.5 Operating income, as reported $ 216 $ 167 $ 988 $ 262 Add/(Deduct): Net impact from fuel contracts (1) 40 31 172 222 Operating income - economic $ 256 $ 198 $ 1,160 $ 484 Add: Charge for AirTran integration costs, net (2) 7 - 7 - Add: Charge from voluntary early out program, net (2) - - - 56 Operating income, non-GAAP $ 263 $ 198 32.8 $ 1,167 $ 540 116.1 Other (gains) losses, net, as reported $ (31) $ (56) $ 106 $ (54) Add/(Deduct): Net impact from fuel contracts (1) 71 96 33 208 Other losses, net, non-GAAP $ 40 $ 40 - $ 139 $ 154 (9.7) Income before income taxes, as reported $ 213 $ 185 $ 745 $ 164 Add/(Deduct): Net impact from fuel contracts (1) (31) (65) 139 14 $ 182 $ 120 $ 884 $ 178 Add: Charge for AirTran integration costs, net (2) 7 - 7 - Add: Charge from voluntary early out program, net (2) - - - 56 Income before income taxes, non-GAAP $ 189 $ 120 57.5 $ 891 $ 234 n.a. Net income, as reported $ 131 $ 116 $ 459 $ 99 Add/(Deduct): Net impact from fuel contracts (1) (31) (65) 139 14 Income tax impact of fuel contracts 12 23 (52) (5) $ 112 $ 74 $ 546 $ 108 Add: Charge for AirTran integration costs, net (3) 3 - 4 - Add: Charge from voluntary early out program, net (3) - - - 35 Net income, non-GAAP $ 115 $ 74 55.4 $ 550 $ 143 n.a. Net income per share, diluted, as reported $ .18 $ .16 $ .61 $ .13 Add/(Deduct): Net impact from fuel contracts (.03) (.06) .12 .02 $ .15 $ .10 $ .73 $ .15 Add: Impact of special items, net (3) - - .01 .04 Net income per share, diluted, non-GAAP $ .15 $ .10 50.0 $ .74 $ .19 n.a. (1) See Reconciliation of Impact from Fuel Contracts (2) Amounts net of profitsharing impact (3) Amounts net of profitsharing impact and taxes SOUTHWEST AIRLINES CO. RECONCILIATION OF IMPACT FROM FUEL CONTRACTS (SEE NOTE REGARDING USE OF NON-GAAP FINANCIAL MEASURES) (in millions) (unaudited) Three Months Ended Year Ended December 31, December 31, 2010 2009 2010 2009 Fuel & Oil Expense Add/(Deduct): Reclassification between Fuel & Oil and Other (gains) losses, net, associated with current period settled contracts $ (14) $ (3) $ (1) $ (38) Add/(Deduct): Contracts settling in the current period, but for which gains and/or (losses) have been recognized in a prior period* (26) (27) (171) (181) Add/(Deduct): Contracts settling in the current period, but for which the underlying hedged fuel has not yet been consumed - - - - Add/(Deduct): Contracts settling in a prior period, but for which the underlying hedged fuel has been consumed in the current period - (1) - (3) Impact from fuel contracts to Fuel & Oil Expense $ (40) $ (31) $ (172) $ (222) Operating Income Add/(Deduct): Reclassification between Fuel & Oil and Other (gains) losses, net, associated with current period settled contracts $ 14 $ 3 $ 1 $ 38 Add/(Deduct): Contracts settling in the current period, but for which gains and/or (losses) have been recognized in a prior period* 26 27 171 181 Add/(Deduct): Contracts settling in the current period, but for which the underlying hedged fuel has not yet been consumed - - - - Add/(Deduct): Contracts settling in a prior period, but for which the underlying hedged fuel has been consumed in the current period - 1 - 3 Impact from fuel contracts to Operating Income $ 40 $ 31 $ 172 $ 222 Other (gains) losses Add/(Deduct): Mark-to-market impact from fuel contracts settling in future periods $ 24 $ 56 $ 21 $ 73 Add/(Deduct): Ineffectiveness from fuel hedges settling in future periods 33 37 11 97 Add/(Deduct): Reclassification between Fuel & Oil and Other (gains) losses, net, associated with current period settled contracts 14 3 1 38 Impact from fuel contracts to Other (gains) losses $ 71 $ 96 $ 33 $ 208 Net Income Add/(Deduct): Mark-to-market impact from fuel contracts settling in future periods $ (24) $ (56) $ (21) $ (73) Add/(Deduct): Ineffectiveness from fuel hedges settling in future periods (33) (37) (11) (97) Add/(Deduct): Other net impact of fuel contracts settling in the current or a prior period (excluding reclassifications) 26 28 171 184 Impact from fuel contracts to Net income ** $ (31) $ (65) $ 139 $ 14 * As a result of prior hedge ineffectiveness and/or contracts marked to market through earnings ** Excludes income tax impact of unrealized items SOUTHWEST AIRLINES CO. FUEL DERIVATIVE CONTRACTS AS OF JANUARY 18, 2011 Percent of estimated fuel consumption* covered by fuel derivative contracts Average Crude Oil Full Year Price per barrel 1Q 2011 2011 Up to $90 68% 64% $90 to $95 33% 52% $95 to $105 15% 29% Above $105 39% 51% Estimated difference in economic jet fuel price per gallon, compared to unhedged market prices, including taxes Average Crude Oil Full Year Price per barrel 1Q 2011 2011 $70 $0.21 $0.21 $90 $0.04 $0.04 $92** $0.02 $0.00 $100 $0.03 $0.00 $125 ($0.05) ($0.16) Percent of estimated fuel consumption* covered by fuel derivative contracts at Beyond 2011 varying crude-equivalent price levels 2012 60% 2013 50% 2014 45% *Estimated fuel consumption for 2011 and beyond excludes any potential impact of the Company's proposed acquisition of AirTran Holdings, Inc. **Based on the current forward curve as of January 18, 2011, and settlement of existing fuel derivative contracts at expiration, first quarter 2011 fuel price per gallon, including taxes, is estimated to settle 2 cents above market prices, and full year 2011 is estimated to be in line with market prices. SOUTHWEST AIRLINES CO. RETURN ON INVESTED CAPITAL (in millions) (unaudited) Year Ended December 31, 2010 Operating Income, as reported $ 988 Add/(Deduct): Net impact from fuel contracts 172 Add: AirTran acquisition costs, net (1) 7 Operating Income, Non-GAAP $ 1,167 Net adjustment for aircraft leases (2) 84 Adjustment for fuel hedge accounting (134) Adjusted Operating Income, Non-GAAP $ 1,117 Average Invested Capital (3) $ 10,431 Equity adjustment for fuel hedge accounting 434 Adjusted Average Invested Capital $ 10,865 . ROIC, pretax 10% (1) Amounts shown net of profitsharing impact (2) Net adjustment related to presumption that all aircraft in fleet are owned. (3) Average invested capital represents a five quarter average of debt, net present value of aircraft leases, and equity NOTE REGARDING USE OF NON-GAAP FINANCIAL MEASURES The Company's Financial Statements are prepared in accordance with accounting principles generally accepted in the United States (GAAP). These GAAP financial statements include unrealized non-cash adjustments and reclassifications, which can be significant, as a result of accounting requirements and elections made under accounting pronouncements relating to derivative instruments and hedging. The Company also provides financial information included that was not prepared in accordance with GAAP and should not be considered as an alternative to the information prepared in accordance with GAAP. The Company provides supplemental non-GAAP financial information that it sometimes refers to as "economic", which the Company's management utilizes to evaluate its ongoing financial performance and the Company believes provides greater transparency to investors as supplemental information to its GAAP results. The Company's economic financial results differ from GAAP results in that they only include the actual cash settlements from fuel hedge contracts--all reflected within Fuel and oil expense in the period of settlement. Thus, Fuel and oil expense on an economic basis reflects the Company's actual net cash outlays for Fuel during the applicable period, inclusive of settled fuel derivative contracts. Any net premium costs paid related to option contracts are reflected as a component of Other (gains) losses, net, for both GAAP and non-GAAP purposes in the period of contract settlement. These economic results provide a better measure of the impact of the Company's fuel hedges on its operating performance and liquidity since they exclude the unrealized, non-cash adjustments and reclassifications that are recorded in GAAP results in accordance with accounting guidance relating to derivative instruments and hedging, and they reflect all cash settlements related to fuel derivative contracts within Fuel and oil expense. This enables the Company's management, as well as investors, to consistently assess its operating performance on a year-over-year or quarter-over-quarter basis after considering all programs in place to curtail fuel expense. However, because these measures are not determined in accordance with GAAP, such measures are susceptible to varying calculations and not all companies calculate the measures in the same manner. As a result, the aforementioned measures, as presented, may not be directly comparable to similarly titled measures presented by other companies. Special items also included a charge of $7 million (before the impact of profitsharing or taxes) during 2010, related to expenses associated with the Company's planned merger with AirTran. Management does not believe these expenses are a meaningful indicator of the Company's results for those particular periods or in comparison to its performance in the corresponding prior or subsequent period. Further information on (i) the Company's fuel hedging program, (ii) the requirements and accounting associated with accounting for derivative instruments, and (iii) the causes of hedge ineffectiveness and/or mark-to-market gains or losses from derivative instruments is included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2009, as well as subsequent Quarterly Reports on Form 10-Q. SOUTHWEST AIRLINES CO. COMPARATIVE CONSOLIDATED OPERATING STATISTICS (unaudited) Three Months Ended Year ended December 31, December 31, 2010 2009 Change 2010 2009 Change Revenue passengers carried 22,451,968 21,498,778 4.4 % 88,191,322 86,310,229 2.2 % Enplaned passengers 29,224,501 25,386,440 15.1 % 114,213,010 101,338,228 12.7 % Revenue passenger miles (RPMs) (000s) 20,005,943 18,175,024 10.1 % 78,046,967 74,456,710 4.8 % Available seat miles (ASMs) (000s) 24,788,095 23,505,932 5.5 % 98,437,092 98,001,550 0.4 % Load factor 80.7% 77.3% 3.4 pts. 79.3% 76.0% 3.3 pts. Average length of passenger haul (miles) 891 845 5.4 % 885 863 2.5 % Average aircraft stage length (miles) 653 632 3.3 % 648 639 1.4 % Trips flown 278,137 272,740 2.0 % 1,114,451 1,125,111 (0.9)% Average passenger fare $131.17 $120.21 9.1 % $130.27 $114.61 13.7 % Passenger revenue yield per RPM (cents) 14.72 14.22 3.5 % 14.72 13.29 10.8 % RASM (cents) 12.56 11.54 8.8 % 12.30 10.56 16.5 % PRASM (cents) 11.88 10.99 8.1 % 11.67 10.09 15.7 % CASM (cents) 11.69 10.83 7.9 % 11.29 10.29 9.7 % CASM, excluding fuel (cents) 7.90 7.45 6.0 % 7.61 7.19 5.8 % CASM, excluding special items (cents) 11.51 10.70 7.6 % 11.11 10.01 11.0 % CASM, excluding fuel and special items (cents) 7.88 7.45 5.8 % 7.61 7.13 6.7 % Fuel costs per gallon, including fuel tax (unhedged) $2.44 $2.08 17.3 % $2.29 $1.80 27.2 % Fuel costs per gallon, including fuel tax $2.59 $2.29 13.1 % $2.51 $2.12 18.4 % Fuel costs per gallon, including fuel tax (economic) $2.48 $2.20 12.7 % $2.39 $1.97 21.3 % Fuel consumed, in gallons (millions) 361 345 4.6 % 1,437 1,428 0.6 % Active fulltime equivalent Employees 34,901 34,726 0.5 % 34,901 34,726 0.5 % Aircraft in service at period-end 548 537 2.0 % 548 537 2.0 % RASM (unit revenue) - Operating revenue yield per ASM PRASM (Passenger unit revenue) - Passenger revenue yield per ASM CASM (unit costs) - Operating expenses per ASM SOUTHWEST AIRLINES CO. CONDENSED CONSOLIDATED BALANCE SHEET (in millions) (unaudited) December 31, December 31, 2010 2009 ASSETS Current assets: Cash and cash equivalents $ 1,261 $ 1,114 Short-term investments 2,277 1,479 Accounts and other receivables 195 169 Inventories of parts and supplies, at cost 243 221 Deferred income taxes 214 291 Prepaid expenses and other current assets 89 84 Total current assets 4,279 3,358 Property and equipment, at cost: Flight equipment 13,991 13,719 Ground property and equipment 2,122 1,922 Deposits on flight equipment purchase contracts 230 247 16,343 15,888 Less allowance for depreciation and amortization 5,765 5,254 10,578 10,634 Other assets 606 277 $ 15,463 $ 14,269 LIABILITIES & STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 739 $ 732 Accrued liabilities 863 729 Air traffic liability 1,198 1,044 Current maturities of long-term debt 505 190 Total current liabilities 3,305 2,695 Long-term debt less current maturities 2,875 3,325 Deferred income taxes 2,493 2,200 Deferred gains from sale and leaseback of aircraft 88 102 Other noncurrent liabilities 465 493 Stockholders' equity: Common stock 808 808 Capital in excess of par value 1,183 1,216 Retained earnings 5,399 4,971 Accumulated other comprehensive loss (262) (578) Treasury stock, at cost (891) (963) Total stockholders' equity 6,237 5,454 $ 15,463 $ 14,269 SOUTHWEST AIRLINES CO. CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (in millions) (unaudited) Three Months Ended Year Ended December 31, December 31, 2010 2009 2010 2009 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 131 $ 116 $ 459 $ 99 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 160 154 628 616 Unrealized (gain) loss on fuel derivative instruments (31) (65) 139 14 Deferred income taxes 38 69 133 72 Amortization of deferred gains on sale and leaseback of aircraft (3) (1) (14) (12) Changes in certain assets and liabilities: Accounts and other receivables 39 56 (26) 40 Other current assets (2) (20) (8) (27) Accounts payable and accrued liabilities 3 101 193 59 Air traffic liability (226) (170) 153 81 Cash collateral received from (provided to) fuel derivative counterparties 115 95 265 (90) Other, net 45 157 (361) 133 Net cash provided by operating activities 269 492 1,561 985 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment, net (94) (115) (493) (585) Purchases of short-term investments (1,293) (1,308) (5,624) (6,106) Proceeds from sales of short-term investments 1,367 1,165 4,852 5,120 Other, net - - - 2 Net cash used in investing activities (20) (258) (1,265) (1,569) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from sale and leaseback transactions - - - 381 Issuance of long-term debt - - - 455 Proceeds from Employee stock plans 10 9 55 20 Proceeds from credit line borrowing - - - 83 Payments of long-term debt and capital lease obligations (31) (22) (155) (86) Payments of revolving credit facility - - - (400) Payment of credit line borrowing - (7) (44) (97) Payments of cash dividends - - (13) (13) Other, net 2 (2) 8 (13) Net cash provided by (used in) financing activities (19) (22) (149) 330 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 230 212 147 (254) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 1,031 902 1,114 1,368 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 1,261 $ 1,114 $ 1,261 $ 1,114 SOUTHWEST AIRLINES CO. REVISED 737 DELIVERY SCHEDULE AS OF JANUARY 19, 2011 The Boeing Company Purchase Previously -700 Firm -800 Firm Options Rights Owned -700 Total 2011 17 2 19 2012 20 20 2013 19 6 25 2014 21 6 27 2015 14 1 15 2016 17 7 24 2017 17 17 Through 2021 98 98 Total 88 * 20 37 98 2 245 * The Company is evaluating substituting 737-800s in lieu of 737-700 firm orders currently scheduled for 2013 through 2016. SOURCE Southwest Airlines
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Thanks for the kind words Rich. I really enjoy writing these posts.
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01-14-2011
03:37 PM
281 Loves
In his weekly blog post, Scott McCartney at the Wall Street Journal's "The Middle Seat Terminal" blog writes about the recent Department of Transportation rankings. Click here to read.
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In keeping with our 40th Anniversary year, let’s take a look at some of our earliest print advertisements. As anyone who has studied or experienced Southwest Airline’s earliest days will know, our cash was short, but we were long on creativity and gumption, which really shows in some of these advertisements. Above is a small portion of one of our earliest and splashiest advertisements, which was timed to coincide with our first flights. The two-page newspaper ad served as an introduction to the differences between Southwest and the existing airlines. The copy next to the Flight Attendant is really the first definition of what we call the Southwest “Fun-LUVing Attitude,” and it says: “She will not plee-aze you. Plee-aze is stiff, formal, and very affected English for please. People who say plee-aze to you are trying very, very hard to be nice to you. Too hard. And it isn’t real. It’s like plastic flowers vs. real flowers. You can feel the difference. That’s why in our hostess school, we haven’t taught our girls how to be nice to you. We figure if they didn’t already know, they weren’t for us.” A company would never call its women Employees "girls" these days, but you have to keep in mind that society was much different in 1971, and our primary Customers were businessmen. The picture above offers ample proof of our target audience. The copy for this Houston-based ad explains that you should be able to walk up to the gate and board the flight you want without a reservation. Our loads at the time were so low that we could advertise, “Don’t worry about reservations when you fly Southwest Airlines.” And, we went on to explain that, if for some reason the flight should be full, we would guarantee you a seat on the next flight for free. All you needed to do was to arrive at Gate 31 in Terminal B at Houston Intercontinental at least five minutes before departure time. Above we see a slightly later full-page ad from the Dallas area, and it proclaims that you could save up to $16 by flying Southwest instead of the other guys. The small copy that is unreadable with this size photo offers suggestions on what that $16 could buy instead of air fare. Not all of our advertisements were full pages or even branded with the Southwest name. Above is a collection of small advertisements that would be placed throughout the newspaper, and the ads contain only our old reservations number, along with some humorous and suggestive advertisements. Some of the sayings read: “Our girls have a way with men,” which referred to Customer Service from our Flight Attendants. “Call this number and get physically elevated,” referred to taking off in an airplane, and “$20 can buy you love,” was the cost of a ticket to Houston and an early reference to the “LUV airline.” In a similar vein, this later 1970s advertisement doesn’t mention Southwest either, but the heart and the “love” reference leave little doubt about who is behind the copy.
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01-11-2011
04:33 PM
2 Loves
anonymous 17;54
yes the partners will convert to points instead of credits.
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Southwest Airlines' Pilots Begin Flying Required Navigation Performance Efficient Procedures at 11 Airports Tue, Jan 11, 2011 - DALLAS - Now ready for departure--Southwest Airlines' Pilots begin Required Navigation Performance (RNP) efficient flight procedures today at 11 airports nationwide. This major milestone to reduce environmental impact with a more efficient operation and to assist the Federal Aviation Administration (FAA) on NextGen initiatives is the culmination of a four-year project with partners Boeing, GE, and Honeywell. RNP is satellite-based navigation that brings together the accuracy of GPS (Global Positioning System), the capabilities of advanced aircraft avionics, and new flight procedures. "RNP sets the stage for Southwest to continue doing its part to conserve fuel, improve safety, and reduce carbon emissions and Greenhouse gases, while simultaneously taking advantage of the high-performance characteristics that exist in an airline's fleet," said Captain Jeff Martin, Southwest's Vice President of the Operations Coordination Center. "The efficiencies RNP introduces help Southwest be a good neighbor while also maintaining our low fares." The Company's Pilots and Dispatchers now follow these new efficient flight procedures and enhanced avionics to fly specifically designed satellite-based navigation approaches to many Southwest airports. The primary airports with efficient RNP procedures include Amarillo*, Birmingham, Boise, Corpus Christi*, Los Angeles, Chicago Midway, Oakland, Oklahoma City, West Palm Beach, Raleigh-Durham, and San Jose. With RNP/NextGen procedures designed at 11 Southwest airports, the Company's projected savings is $16 million a year, with an anticipated savings of more than $60 million per year once all Southwest airports have efficient RNP procedures. "RNP is a significant step in the future for the NextGen Air Traffic Control system," said Mike Van de Ven, Southwest's Executive Vice President and Chief Operating Officer. "This milestone culminates substantial efforts by our Company working with the FAA to position Southwest as a leading participant in a modernized air traffic control system." In addition to modifying 345 Boeing 737-700s with new flight display software and ensuring that all new aircraft are RNP ready, this cross-company effort involving Technology, Maintenance & Engineering, and the Operations Coordination Center also featured intense training efforts to support achieving this milestone. "I am very proud of our Flight Operations Team for the design, training, and implementation of NextGen procedures, including training more than 5,900 Pilots to fly Primary Flight Display Navigation Display (PFD/ND) procedures," said Captain Chuck Magill, Vice President of Flight Operations. "This extensive training allows us to capture RNP procedures as well as provide flexibility in any new aircraft platform we might use in the future." After nearly 40 years of service, Southwest Airlines (NYSE: LUV) continues to differentiate itself from other low fare carriers--offering a reliable product with exemplary Customer Service. Southwest Airlines is the nation's largest carrier in terms of originating domestic passengers boarded, now serving 69 cities in 35 states. Southwest also is one of the most honored airlines in the world known for its commitment to the triple bottom line of Performance, People, and Planet. To read more about how Southwest is doing its part to be a good citizen, visit southwest.com/cares to read the Southwest Airlines One Report(TM). Based in Dallas, Southwest currently operates more than 3,100 flights a day and has nearly 35,000 Employees systemwide. *Amarillo and Corpus Christi will begin RNP approaches on January 14, 2011. southwest.com SOURCE Southwest Airlines
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01-11-2011
09:41 AM
2 Loves
Columbia Bob,
Yes they will.
Very Unhappy Customer
Not sure where you are getting information about flight changes, but our policy remains unchanged since the mid-80s when we began advance purchase discount fares. (By the way, if we had had the internet and social media back then, I am sure that change would have set off a similar outcry.) Our current commercials are trying to reinforce that message.
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01-10-2011
03:32 PM
2 Loves
Hi Finn,
I don't know if they will add Business Select seats or not. Sometimes the seats are sold out because we won't sell Business Select if there is a large load of through Customers. If there are 70 throughts lets say, a Business Select Customer doesn't get much use out of boarding early so we won't sell it in that case.
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01-09-2011
06:51 PM
3 Loves
Pam Stuart, I can't tell exactly from what you write, but if you have the one A-list about to expire in April but have enough credits for the second one, you will get an additional A-List. Our Marketing Folks tell me that they will review your travel history, which will help determine the type of expiration you would receive on the new pass.
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01-08-2011
07:51 PM
5 Loves
Yes strikeapose, you are tracking your info, but we would have to do that for the millions of people who flew us last year. Do we just do December, then folks in November would be upset. You have to have a start date at somepoint.
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01-08-2011
04:19 PM
4 Loves
strikeapose, I musunderstood the intention of your earlier post, and I am sorry. Since you flew under the old system, there is no way to capture that Anytime Fare at the new systems value. It simply didn't track it. Your situation illustrates the lost value in the old system. You paid more than many folkd, but you earned the same as someone on an hour flight with a $29 fare.
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01-07-2011
11:28 PM
2 Loves
Rsussman, apology accepted. I admit I was freaked by someone mentioning my out of context personal information, and I am so glad you clarified. I don't work with Ryan on a daily basis, but I think he embodies the Southwest Spirit perfectly. He and our other marketing folks knew some people, especially our shorthaul travelers would be upset by the changes and they tried to mitigate those changes in the transition period, plus providing other longterm innovations like making every seat on every flight available for award travel. It is conceivable, although probably not very probable, that we will have flights filled with nothing but Rapid Rewards Members on Award Travel. Why do the change? Because the airline industry is very different than it was in 1987 when Company Club started. In that time, almost every one of our competitors except for American, Alaska, and the current start ups has been in bankruptcy court, some multiple times, to shed debt and reduce costs to create artificial competitive advantages. We know our existence is based on charging low fares and keeping costs low, and that is one thing that hasn't changed in 40 years. We simply need new ways to create revenue without massive layoffs with the resulting reduction in Customer Service levels, raising fares to much higher levels, or charging fees for things that should be free. The new Rapid Rewards Program is one such way to do that, and in the intro news conference, Gary Kelly said that we stand to gain several hundreds of million dollars in additional revenue from the new program.
Jason B also raises a good point. We are poised to enter markets we never have been able to serve before. A frequent flyer program based on shorthaul traffic simply doesn't allow the flexibility for long haul or overwater markets when those come on line. Herb was always telling us that "if you don't change, you die."
dorothyannkc, everything you have read was written here in the US, and I am sorry you found it confusing. It is a complicated subject, kind of like a detailed board game that seems intimidating when you read the instructions. However, once you play it, you see how easy it can be. All we ask is for those of you who are doubters and sceptics to give the new system a chance.
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01-07-2011
08:49 PM
3 Loves
anonymous 17;54 yes you can earn points from partners. Check out the "earn" page at newrapidrewards.com and look at the partners features. Actually , we look to add more partners with the points system because that is an easier "currency" to trade with potential partners that credits.
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01-07-2011
05:54 PM
1 Love
notsohappy,
I find it hard to accept praise given in a familiar manner by someone who hides behind anonymity. Also your history is askew because I assume you are referring to Gary Kelly. In fact, Gary was part of the Team that developed the original Rapid Rewards program back in 1987.
With all due respect, your suggestion builds in the same kind of tiered level that our present program will have without the benefits. Points allow for greater partner participation, they allow the elimination of blackouts and seat restrictions for blackouts.
Eric,
You may not see the positive feedback until the system goes into effect. Time will tell on that as Temp inOKC writes.
TempinOKC,
thanks for the kind thoughts. We are listening to the legitiimate concerns minus the personal attacks. I've been involved with social media for five years and i am always amazed how some folks feel they can only get their point across by calling someone else a liar.
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01-07-2011
04:55 PM
2 Loves
Gloria at 13:51, thanks so much for pointing out one of the advantages of the new program. Under the old program it requires 32 one way trips in a 12-month period to earn an A-List and no partner credits. A-List doesn't generate any earning premium in the current program. Under the new program you get A-List with only 25 one way flights in a calendar year, or with 35,000 Tier Qualifying Points AND A-List Members earn points with a 25 percent bonus in the new system.
strikeapose, you have hit upon the biggest inequality in the old system. You are right, you would have earned 6,840 points for each of you, due to the amount of money you paid for your recent trip. However under the old system, a flight credit was the same no matter if you paid a $29 one way fare or $465.40 like you did. The 1200 points per flight credit is an average value of the old system. With the new system, you earn based on what you pay.
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01-07-2011
01:40 PM
627 Loves
Hey, folks! We know that there is a lot of buzz out there regarding our announcement of the new Rapid Rewards program. We have been monitoring Customer feedback on all of our channels, and we know there is some concern about what the new program will mean for our Customers. Rest assured, the new Rapid Rewards program is based on what our Customers have been asking us to change over the years, and it was very carefully designed by and responsive to an extensive set of Customer research and feedback from our Members. With more understanding of the benefits of the new program, we feel that our Customers will ultimately agree that the changes make the program better. That said, we realize this is a big change for our Customers. That is why we have developed a web site specifically designed to help our Members understand the new program and what it will mean for them. We encourage you to visit www.newrapidrewards.com and see for yourself how the new program works. You’ll find a wealth of information, along with some videos, that will walk you through the changes. If you still have specific questions or concerns, please post below, and we’ll find an answer for you!
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Welcome to the first Flashback Fridays of 2011, and as most of you may know, this year marks Southwest Airlines’ 40th Anniversary. From time to time throughout the year, I will be sharing information and photos from 1971, and we start that off today. But, before we do, I have an extra credit question that won’t win you anything other than pride in having a correct answer: What other major domestic transportation company was born in 1971? (answer below, but don’t cheat) For that first year, our airplanes wore a unique livery and carried the word, “Airlines,” on the tail. From what I can tell, that practice was done by mid 1972, and with the exception of the two batches of 727s, all of our aircraft have worn “Southwest” by itself on the tail ever since. With that being true, the photo above probably dates from 1971, and I am guessing it was taken either before we started flying or in the first month of flying. Why do I say that? The 737-200 was notorious about having stained skin on the fuselage behind the engines because of its thrust reverser system. Big clamshell doors would throw dirt and engine exhaust onto the fuselage, and the area behind the wing always looked dirty. Since the aft fuselage is still relatively untouched on the aircraft, it is a new airframe. Also the three Flight Attendants (Hostesses back then) are wearing the original uniforms with hot pants and go-go boots. The location appears to be in front of our original hangar on the north side of Love Field. It looks as though the Flight Attendant is pointing to the sky, so this raises the question: Was the photo taken before the courts okayed our operation, and is she saying “one day, we will be up there?” The next photo was taken sometime before 1974 because it shows our operation on the North Concourse, our home until the DFW Airport opened in January 1974. This photo has more questions than answers. First off, the guy to the right is wearing what looks like a cap worn by the French Foreign Legion. What is he doing in the photo? He appears to be talking to the man in the jumpsuit coming around the front of the aircraft. Then there is the Flight Attendant talking to the man with the dress shirt and tie in front of the cargo bin. Could this have been an early mechanical, since the aircraft is parked away from the concourse? My best guess is that the aircraft was parked remotely due to our two gates being full and the guy with the Legion cap is a fueler, with the man in the jumpsuit being a Mechanic. When I played with the contrast, it looks as though a grounding cable for fueling is attached to the gear door cover. And speaking of questions, the answer to my quiz in the first paragraph is Amtrak. The quasi-government organization took over the operation of the nation’s passenger trains on May 1, 1971.
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Southwest Airlines Reports December Traffic DALLAS, Jan. 7, 2011 /PRNewswire via COMTEX/ -- Southwest Airlines Co. (NYSE: LUV) announced today that the Company flew 6.6 billion revenue passenger miles (RPMs) in December 2010, an 11.3 percent increase from the 6.0 billion RPMs flown in December 2009. Available seat miles (ASMs) increased 5.6 percent to 8.3 billion from the December 2009 level of 7.8 billion. The load factor for the month was 80.4 percent, compared to 76.2 percent for the same period last year. For December 2010, passenger revenue per ASM is estimated to have increased approximately five percent as compared to December 2009. For the fourth quarter 2010, Southwest flew 20.0 billion RPMs, compared to 18.2 billion RPMs flown for the same period in 2009, an increase of 10.1 percent. Available seat miles increased 5.5 percent to 24.8 billion from the fourth quarter 2009 level of 23.5 billion. The fourth quarter 2010 load factor was 80.7 percent, compared to 77.3 percent for the same period last year. For the year ended December 31, 2010, Southwest flew 78.0 billion RPMs, compared to 74.5 billion RPMs flown for the same period in 2009, an increase of 4.8 percent. Available seat miles increased 0.4 percent to 98.4 billion from the 2009 level of 98.0 billion. The year-to-date load factor was 79.3 percent, compared to 76.0 percent for the same period last year. This release, as well as past news releases on Southwest, are available online at southwest.com. SOUTHWEST AIRLINES CO. PRELIMINARY COMPARATIVE TRAFFIC STATISTICS DECEMBER 2010 2009 CHANGE Revenue passengers carried 7,299,247 7,037,220 3.7 % Enplaned passengers 8,946,340 8,354,947 7.1 % Revenue passenger miles (000s) 6,647,976 5,970,657 11.3 % Available seat miles (000s) 8,270,486 7,832,747 5.6 % Load factor 80.4% 76.2% 4.2 pts. Average length of haul 911 848 7.4 % Trips flown 92,495 90,784 1.9 % FOURTH QUARTER 2010 2009 CHANGE Revenue passengers carried 22,461,821 21,498,778 4.5 % Enplaned passengers 27,163,960 25,386,440 7.0 % Revenue passenger miles (000s) 20,005,943 18,175,023 10.1 % Available seat miles (000s) 24,788,095 23,505,932 5.5 % Load factor 80.7% 77.3% 3.4 pts. Average length of haul 891 845 5.4 % Trips flown 278,137 272,740 2.0 % TOTAL YEAR 2010 2009 CHANGE Revenue passengers carried 88,201,175 86,310,229 2.2 % Enplaned passengers 106,227,521 101,338,228 4.8 % Revenue passenger miles (000s) 78,046,967 74,456,710 4.8 % Available seat miles (000s) 98,437,092 98,001,550 0.4 % Load factor 79.3% 76.0% 3.3 pts. Average length of haul 885 863 2.5% Trips flown 1,114,451 1,125,111 (0.9)% SOURCE Southwest Airlines Co.
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Gary Kelly selected as DBJ’s CEO of the Year Dallas Business Journal Executive of the Year Dallas Business Journal - by Candace Carlisle , Staff Writer Date: Friday, January 7, 2011, 5:00am CST When Gary Kelly first walked through the doors at Southwest Airlines Co. and down the long corridor of the now-demolished east terminal of Dallas Love Field Airport that housed the airline’s operations, he wasn’t impressed. The terminal was perpetually being remodeled and plastic-sheet walls were the norm. “I had to fight my way through the plastic; it made me wonder what kind of operation they were running,” Kelly said, chuckling. He didn’t wonder long. When the vice president of finance offered him a controller position with the airline, he jumped at the opportunity. More than 23 years later, Kelly, 55, ... Read more: Gary Kelly selected as DBJ’s CEO of the Year | Dallas Business Journal http://www.bizjournals.com/dallas/print-edition/2011/01/07/gary-kelly-selected-as-dbjs-ceo-of.html#ixzz1AMBjwiTw
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anonymoyus 18:59 Yes you can use the points to buy tickets for others.
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Gino, to the contrary no one needs to divide or multiply. Please go to newrpaidrewards.com and look at the earn and spend pages. southwest.com will clearly show what each fare will earn in Rapid Rewards Points. When it comes time to spend your points, the amount needed is in the dollar amount. You can toggle it to place the points value first and then the dollar amount.
Your flights flown between January 1, 2011 and March 1, 2011 will count toward the A-List Preferred
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