Southwest Airlines Community

    DALLAS, TEXAS – August 5, 2008 - Southwest Airlines Co. announced today that the Company flew 6.9 billion revenue passenger miles (RPMs) in July 2008, a 2.3 percent decrease from the 7.0 billion RPMs flown in July 2007.  Available seat miles (ASMs) increased 4.3 percent to 9.0 billion from the July 2007 level of 8.7 billion.  The load factor for the month was 76.3 percent, compared to 81.4 percent for the same period last year. For the seven months ended July 31, 2008, Southwest flew 44.3 billion RPMs, compared to the 42.2 billion RPMs recorded for the same period in 2007, an increase of 5.0 percent.  Available seat miles increased 5.7 percent to 60.6 billion from the 2007 level of 57.3 billion.  The year-to-date load factor was 73.1 percent, compared to 73.6 percent for the same period last year.   www.southwest.com   ... View more

SOUTHWEST AIRLINES PROVISIONS DENVER WITH LUV CELEBRATING PROVISIONING BASE GRAND OPENING, BACKPACK BRIGADE COMMUNITY EVENT, AND NEW SERVICE Southwest Airlines Donates 100 Backpacks to Operation Homefront During a Back-to-School Party at Denver International Airport (DIA) New Flights to Sacramento, New Orleans, and Ft. Lauderdale/Hollywood Start Today DENVER, CO – Aug. 4, 2008 - Southwest Airlines hosted a triple celebration today at Denver International Airport (DIA) in honor of the grand opening of the airline’s 22nd Provisioning Base, a back-to-school party benefiting the Colorado Chapter of Operation Homefront, and the addition of several new flights which begin today from Denver.     Southwest Airlines is celebrating the grand opening of the carrier’s 22nd Provisioning Base in Denver.  The Provisioning Base will temporarily be located in a 2,500 square-foot facility on the lower-level of the airport.  The airline is planning a larger facility for the Provisioning Base that is scheduled to open in 2009.  Southwest Airlines initially hired 23 Provisioning Employees to operate the new base, adding to the 275 Employees already working at the airport.    Southwest Airlines serves more than 64 million cans of soda, juice, and water, 11 million alcoholic beverages, six million bags of pretzels, and more than 100 million bags of peanuts a year!  The Provisioning Team restocks the aircraft with all necessary food, drink, and entertainment items at each of our Provisioning Stations when an aircraft arrives at the gate between flights.    “With our steady expansion in Denver since January 2006, the Denver Provisioning Station will support the increased aircraft flow and will complement our Provisioning network nationwide,” said Scott Halfmann, Southwest’s Vice President of Provisioning.  Through the airline’s Companywide Backpack Brigade effort, Southwest Airlines will donate 100 backpacks to the Colorado Chapter of Operation Homefront, provisioning children of deployed military service members with parents serving in Afghanistan and Iraq with school supplies for the upcoming year.  The backpacks contain much-needed items donated by Southwest Employees as part of a Share the Spirit supply drive.  For the past month, Southwest Employees donated goods, including binders, folders, pencils, and markers at each of its 64 locations across the nation.  The backpacks will be distributed to 11 cities, including Denver.  Southwest Airlines executives presented the backpacks to more than 25 children representing Operation Homefront at today’s celebration.   “Today’s celebration is indicative not only of our expansion in Denver, but of our commitment to being a good neighbor to the city,” said Mike Van de Ven, Southwest’s Executive Vice President and Chief Operating Officer.  “Denver has been a major focus for us since we re-entered the market in 2006, and we will continue to look for ways to complement our service in the Mile-High City by giving back to the community.”  Southwest Airlines also will commence five daily nonstop flights from Denver today.  The additional service includes two new daily nonstop flights between Denver and Sacramento, one new nonstop flight each between Denver and Ft. Lauderdale/Hollywood and Denver and New Orleans, as well as one additional daily nonstop flight between Denver and Phoenix (for a total of seven daily).  To book your seat on these new Southwest Airlines flights, visit: http://www.southwest.com/?src=PRPRPRNDENV000000080408.  Southwest Airlines began service to Denver on Jan. 3, 2006, with 13 daily nonstop departures to three destinations.  The airline currently operates 89 daily nonstop flights from the Mile High City, making Denver the fastest growing city in the Company’s history.  With previously announced service, Southwest will operate 115 nonstop flights from Denver to 32 cities by Nov. 2, 2008.    About Southwest Airlines With Southwest Airlines’ Share the Spirit program, Employees are devoted to each and every community the airline serves.  Throughout the year, Southwest Airlines Employees reach out to individuals, families, and entire communities providing help where it is needed.  Southwest’s Share the Spirit is ingrained in the Company’s culture, and the airline’s 34,000+ Employees are often the lifeline for those in need.   Based in Dallas, Southwest Airlines serves 64 cities in 32 states and is the largest carrier in the world, as measured by passengers carried. About Operation Homefront & CinCHouse.com What is today Operation Homefront began in 2001 as a military spouse-generated idea. In response to the needs of the families of deployed service members, CinCHouse.com members (military wives and women in uniform) created the project that has evolved into a major nonprofit charity serving 30 military communities. Today CinCHouse.com operates as a program as part of the nonprofit Operation Homefront family. From a good idea to a great organization, Operation Homefront understands and takes care of the needs of the military community. www.southwest.com   ... View more

By Terry Maxon   Today's question is simple. Identify the location of this sign, and explain it.   To submit your answer, visit:  http://aviationblog.dallasnews.com/archives/2008/08/monday-morning-trivia-61.html ... View more

Employees Donate, Package, and Load School Supplies on Military Vehicle Bound for Troops’ Children   DALLAS—July 24, 2008—Southwest Airlines Employees today were joined at the airlines’ Dallas Maintenance Facility by Herb Kelleher, Chairman Emeritus and Founder, and Colleen Barrett, President Emeritus, to send off a U.S. military cargo truck carrying 1,000 backpacks filled with school supplies for donation to children of U.S. military personnel serving overseas.  This is the final phase of “Backpack Brigade,” a month-long program in partnership with Operation Homefront, to raise support for the families of troops in Iraq and Afghanistan.  The backpacks contain much-needed items donated by Southwest Employees as part of a companywide Share the Spirit supply drive.  For the past month, Southwest Employees donated goods such as binders, folders, pencils, and markers at each of its 64 locations across the nation.  The donated items were packaged into individual backpacks and will be sent to communities that Southwest serves from coast to coast.  “Since many of Southwest’s Employees have served, or are currently serving in the military, this project is very close to home,” said Debra Benton, Director of Community Relations and Charitable Giving.  “This Backpack Brigade initiative honors Herb and Colleen for their inspirational leadership of Southwest and their unwavering support for education and the military.”   About Southwest Airlines With Southwest Airlines’ Share the Spirit program, Employees are devoted to each and every community the airline serves.  Throughout the year, Southwest Airlines Employees reach out to individuals, families, and entire communities providing help where it is needed.  Southwest’s Share the Spirit is ingrained in the company’s culture, and the airline’s 34,000+ Employees are often the lifeline for those in need.   Based in Dallas, Southwest Airlines serves 64 cities in 32 states and is the largest carrier in the world, as measured by passengers carried.   About Operation Homefront & CinCHouse.com What is today Operation Homefront began in 2001 as a military spouse-generated idea. In response to the need for the families of deployed service members, CinCHouse.com members (military wives and women in uniform) created the project that has evolved into a major nonprofit charity serving 30 military communities. Today CinCHouse.com operates as a program as part of the nonprofit Operation Homefront family. From a good idea to a great organization, Operation Homefront understands and takes care of the needs of the military community.   ... View more

DALLAS, TEXAS – July 24, 2008 – Southwest Airlines (NYSE:LUV) today reported its second quarter 2008 results.  Net income for second quarter 2008 was $321 million, or $.44 per diluted share, compared to $278 million, or $.36 per diluted share, for second quarter 2007.   Excluding special items, second quarter 2008 net income was $121 million, or $.16 per diluted share, compared to $195 million, or $.25 per diluted share, for second quarter 2007.  The second quarter 2008 results exceed First Call’s mean estimate of $.12 per diluted share.   Refer to the reconciliation in the accompanying tables for further information regarding special items.   Second Quarter 2008 Financial Highlights: Record quarterly revenues of $2.9 billion, up 11.1 percent from second quarter 2007 Net income, excluding special items, of $121 million, down 37.9 percent Net income per diluted share, excluding special items, of $.16, down 36 percent Favorable cash settlements of $511 million from fuel contracts were reflected in net income, excluding special items Gary C. Kelly, Chairman of the Board, President, and Chief Executive Officer, stated:  “With the weak domestic economy and unprecedented jet fuel prices, we are pleased to report our 69th consecutive quarter of profitability.  Although we have prepared ourselves well for today's challenging environment and are proud of our ability to sustain profitability, we cannot stand still.  We must continue to make the necessary adjustments to adapt to higher jet fuel prices and restore our profit margins.  "In addition to our major revenue initiatives underway, we continue to raise fares to avoid nickel and diming our Customers with added fees.  With new schedule planning tools and processes and fleet flexibility, we believe we are well-positioned to respond to a rapidly changing environment and have the flexibility to adjust our flight schedule, as necessary, to eliminate unproductive flying.  At present, we plan to grow our year-over-year available seat mile (ASM) capacity no more than four percent in 2008 to primarily meet Customer demand in developing markets, such as Denver.  Customers have responded exceptionally well to Southwest service in Denver.  As a consequence, we will grow to 115 daily departures to 32 markets in November.  We are evaluating our current fleet plans and may not grow our ASM capacity in 2009.     "As previously outlined, we have much work underway to grow revenues, and I am proud of the progress we are making.  Despite the tough economy and more difficult year-over-year comparisons caused by Easter falling in March this year (versus April last year), we reported record operating revenues of $2.9 billion for the second quarter 2008 and an operating revenue per available seat mile (RASM) year-over-year growth rate of 5.3 percent .  Based on revenue and booking trends so far this quarter, we are expecting strong yield growth but with lower load factors versus third quarter 2007.  Thus far, our RASM growth rate in July has surpassed our second quarter year-over-year increase. “Although our revenue trends are strong, energy prices continue to soar.  Even with $511 million in favorable cash settlements from derivative contracts in the second quarter 2008, our economic fuel costs increased 35.2 percent to $2.19 per gallon.  Although better than we anticipated, the considerable year-over-year increase in fuel costs was by far the most significant driver of the 10.5 percent increase in our second quarter 2008 unit costs, excluding special items.  We have derivative contracts for approximately 80 percent of our third quarter 2008 estimated fuel consumption at an average crude-equivalent price of approximately $61 per barrel (compared to approximately 90 percent at approximately $51 per barrel for third quarter 2007).  Based on this derivative position and current market prices, we currently anticipate our third quarter 2008 economic fuel cost per gallon to be in the $2.50 range. “The current market value of our fuel derivative contracts for third quarter 2008 through 2012 is approximately $4.3 billion as a result of the extraordinary increase in fuel prices this year.  In addition to our third quarter 2008 derivative contracts, we currently have derivative contracts for approximately 80 percent of our estimated fuel consumption for the fourth quarter 2008 at an average crude-equivalent price of approximately $58 per barrel; approximately 70 percent in 2009 at an average crude-equivalent price of $66 per barrel; approximately 40 percent in 2010 at an average crude-equivalent price of approximately $81 per barrel; and over 20 percent in 2011 and 2012 at an average crude-equivalent price of approximately $77 and $76 per barrel, respectively. “Excluding fuel, second quarter 2008 unit costs increased 1.8 percent from a year ago, which was better than we anticipated.   Based on current trends, we expect our third quarter 2008 unit costs, excluding fuel and special items, to be in line with second quarter 2008’s 6.72 cents. "Although we have enormous cost challenges, primarily due to persistently higher fuel costs, we believe we have equally large opportunities to improve our revenue production.  At the same time, we are enhancing our already strong brand and Customer Experience.  The responses to our Business Select product, new boarding method, and makeover of the gate areas have been overwhelmingly positive.  We are also making progress with our efforts to expand our network through codeshare arrangements and are excited about our recently announced plans to codeshare with WestJet to Canada by the end of 2009.   "While our Employees are working harder than ever to secure our future, they continue to deliver warm, caring, and friendly Southwest-style service.  Our People have incredible Warrior Spirits and huge hearts, which is why we lead the industry in Customer Satisfaction according to the American Customer Satisfaction Index and most recently captured The Reputation Institute's top ranking of the U.S. airlines by reputation.  Their efforts are remarkable, their results superb, and I and am very grateful to each of them.  Our People are, truly, the core strength of our Company."  Southwest will discuss its second quarter 2008 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 second quarter 2008 increased 11.1 percent to $2.9 billion, compared to $2.6 billion for second quarter 2007.  Total second quarter 2008 operating expenses were $2.7 billion, compared to $2.3 billion in second quarter 2007.  Operating income for second quarter 2008 was $205 million compared to $328 million in second quarter 2007.  Excluding special items, operating income was $242 million in second quarter 2008 compared to $328 million last year.  Operating income, excluding special items, reflects fuel and oil expense of $857 million and $607 million for second quarter 2008 and 2007, respectively, which is based on the Company's true economic cost of fuel, including the benefit of cash settlements from derivative contracts of $511 million and $173 million, respectively.  “Other income” was $324 million for second quarter 2008, compared to $119 million for second quarter 2007.  The $205 million increase principally resulted from higher unrealized gains associated with Statement of Financial Accounting Standard (SFAS) 133, “Accounting for Derivative Instruments and Hedging Activities,” as amended.  These unrealized gains represent the most significant difference between the Company’s net income and net income, excluding special items.  The cost of the hedging program (which includes the premium costs of derivative contracts) of $14 million in second quarter 2008 and second quarter 2007 is also included in "other (gains) losses.”  The $20 million year-over-year increase in net interest expense for second quarter 2008 resulted from lower interest rates on cash, cash equivalents, and investments and lower Boeing aircraft progress payments, which generated less capitalized interest. Net cash provided by operations for the six months ended June 30, 2008 was $3.3 billion, which included a $2.4 billion increase in fuel derivative collateral deposits related to future periods, and capital expenditures were $587 million.  During second quarter 2008, the Company borrowed $600 million under a new term loan secured by 21 aircraft.  The Company ended second quarter 2008 with $5.8 billion in cash and short-term investments, which included $4.4 billion in fuel derivative collateral deposits (with a corresponding liability recorded in Accrued Liabilities).  At present, the value of the Company’s fuel derivative contracts for third quarter 2008 through 2012 is approximately $4.3 billion with corresponding fuel derivative collateral deposits of $3.7 billion.  In addition, the Company had a fully available unsecured revolving credit line of $600 million.   Total operating revenues for the six months ended June 30, 2008 increased 12.9 percent to $5.4 billion, while total operating expenses increased 16.9 percent to $5.1 billion, resulting in operating income in first half 2008 of $293 million versus $412 million in first half 2007.  Excluding special items, operating income was $341 million and $398 million, respectively, for the six months ended June 30, 2008 and 2007.  Net income for the six months ended June 30, 2008 was $355 million, or $.48 per diluted share, compared to $371 million, or $.47 per diluted share, for the same period last year.  Excluding special items, net income for the six months ended June 30, 2008 was $164 million, or $.22 per diluted share, compared to $228 million, or $.29 per diluted share, for the same period last year.  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 relating to (i) the Company's expectations regarding future results of operations; (ii) its strategies, initiatives, and revenue opportunities; and (iii) its growth plans.  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) the price and availability of aircraft fuel and the Company’s ability to overcome increased fuel costs through fare increases or other revenue initiatives; (ii) the Company's ability to timely and effectively prioritize its revenue and cost reduction initiatives and its related ability to timely implement and maintain the necessary information technology systems and infrastructure to support these initiatives; (iii) the impact of governmental regulations and inquiries on the Company’s operating costs, as well as its operations generally; (iv) competitor capacity and load factors; and (v) other factors, as described in the Company's filings with the Securities and Exchange Commission, including the detailed factors discussed under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2007.   ... 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  By SUZANNE MARTA / The Dallas Morning News Remember that scene from Meet the Parents where actor Ben Stiller waits as an airline agent types in about a million keystrokes to find out if he can get an earlier flight? Southwest Airlines' Dallas Love Field customer service agent Pat Stock lives it every day. "I've had people say, 'Why does it take all that? I'm just going to Houston,' and I just say, 'Because Mickey Mouse made it,'." she said, her fingers furiously clacking away to help a customer who had a paper ticket. "I'm just glad my mom made me take typing in high school." Soon, checking in Southwest customers should be a matter of using a mouse to point and click. The Dallas-based carrier has been testing a new customer service system called CS2 that ties information together under a single platform and uses intuitive icons and drop-down menus instead of thousands of cryptic commands.   To read more, visit:  http://www.dallasnews.com/sharedcontent/dws/bus/stories/072208dnbussouthwest.3e0fde3.html ... View more

  Southwest Airlines Secures Top Spot as Most Reputable U.S. Airline – It’s not all about service! New York, New York – July 14 – Reputation Institute, a leader in reputation management, released today an in-depth study on consumer perceptions of the nation’s airlines based, in part, on findings from their annual Global Pulse study. Consumer favorite, Southwest Airlines, had the highest reputation among the largest U.S. airline carriers included in the study, followed closely by JetBlue Airways and Continental Airlines. As a whole, the airline industry has a below average reputation in the U.S. market place, with four of the nine carriers measured showing weak reputation standings - scores below 60. Further results from the study shed light on what drives the public’s perceptions of airlines in the midst of growing reports of industry mismanagement, poor service amenities and rising costs. What Drives Reputation Using Reputation Institute’s model, the emotional appeal a company commands in the public’s eye, its reputation, is driven by perceptions of the company’s strength around seven rational dimensions: product/services, innovation, workplace, citizenship, governance, leadership, and financial performance. In the airline industry the most influential dimension of reputation with the American general public is products/services, accounting for 19% of reputation. Growing in importance with the public are governance and workplace issues. Combined, perceptions of these two dimensions explain 30% of reputation for the industry. “The poor reputations of U.S. airlines today is clearly a reflection of their difficulty to rate well on dimension level issues” said Kasper Nielsen, Managing Partner at Reputation Institute. “It isn’t surprising to see Southwest rise to the top as they have been able to maintain their image as a well-run low-cost carrier with a happy workforce” he added. The study revealed that on average only 35% of the U.S. public would recommend their carrier to others. Nielsen further suggested, “Increased attention to the critical areas of reputation in conjunction with a targeted reputation management effort may help airlines win greater support with the public.” The top rankings for U.S airlines are as follows: Company Pulse Score 1 Southwest Airlines 67.72 2 JetBlue Airways 65.92 3 Continental Airlines 61.98 4 American Airlines 60.67 5 AirTran 60.47 6 Delta Air Lines 59.52 7 United Airlines 58.35 8 Northwest Airlines 58.20 9 US Airways 56.10 Survey Methodology This study was conducted online in the U.S. between February and March of 2008 in conjunction with Reputation Institute's Global Pulse 2008. 2008 is Reputation Institute’s third year conducting the Global Pulse study, the largest study of corporate reputation in the world measuring over 1,000 companies in 27 countries annually. This year over 200 U.S. companies were measured using the RepTrak™ tool , providing detailed information on the power and drivers of their reputations in the marketplace. A Pulse score is a measure of corporate reputation calculated by averaging perceptions of 4 indicators of trust, esteem, admiration, and good feeling obtained from a representative sample of at least 100 local respondents who were familiar with the company. Scores range from a low of 0 to a high of 100, Pulse scores that differ by more than +/-0.5 are significantly different at the 95% confidence level. Scores can be categorized using the below key: Excellent/Top Tier above 80 Strong/Robust 70 – 79 Average/Moderate 60 – 69 Weak/Vulnerable 40 – 59 Poor/Lowest Tier below 40 About Reputation Institute Reputation Institute is a private advisory and research firm specialized in corporate reputation management. With offices and associates in more than 20 countries, Reputation Institute provides knowledge-based consulting services to some of the most respected companies worldwide. Our consulting teams regularly help global clients assess, value and act on their reputations by providing strategic analysis and direction, as well as relevant assistance in developing and implementing reputation measurement and management systems. Reputation Institute also identifies best practices from original research, and we share our cutting-edge findings with clients and members through engagements, seminars, conferences, and publications. The Global Pulse is Reputation Institute’s flagship research study conducted annually with some 60,000 consumers in 27 countries from which emerge detailed ratings of the reputations of the world’s 1000 largest companies. Each year, the results of this study are featured in leading business publications around the world. Visit www.ReputationInstitute.com to learn more about us. ... View more

DALLAS, July 17 -- 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 August 28, 2008 on all shares then issued and outstanding.  The 128th consecutive dividend will be paid on September 18, 2008. ... View more

By Terry Maxon Colleen Barrett became just another Southwest Airlines employee Wednesday after stepping down as president. As I was talking to her last week, I heard a story about her and Herb Kelleher I hadn't heard before -- the time he abandoned her at the grocery store. It happened one Saturday years ago, Ms. Barrett remembers: He dropped me at Albertson's, was going to do something and come back. He literally forgot me. I was so mad at him. Of course, he doesn't have a cell phone. He doesn't pick up his townhouse phone, and it doesn't have a recorder. The next day, when I took a taxicab to the office and he was in the office on a Sunday. He went 'Aaaaahhhh! Oh! That's right! I was supposed to pick you up! You can't stay angry at him. You can't stay angry at him even when you're ready to kill him. I have great Kelleher stories. To read more, visit:  http://aviationblog.dallasnews.com/archives/2008/07/even-more-of-colleen-barrett.html ... View more

  Executive Changes Take Effect Today   DALLAS—July 16, 2008—With Herb Kelleher and Colleen Barrett now officially handing over their management titles, previously announced Executive changes at Southwest Airlines take effect today.  Southwest Airlines CEO Gary Kelly assumes the additional roles of Chairman of the Board and President.  The Board of Directors elected Executive Vice President Ron Ricks to fill Barrett’s position of Corporate Secretary.  Additionally, the airline redefined the roles of its three Executive Vice Presidents.  Bob Jordan, Executive Vice President Strategy and Planning; is responsible for strategic planning, technology, airport security, facilities, and schedule planning.  Ron Ricks, Executive Vice President Corporate Services and Corporate Secretary; is responsible for legal, labor and Employee relations, political and public affairs, and properties.  Mike Van de Ven, Executive Vice President and Chief Operating Officer; is responsible for all operations, maintenance, Customer Services, safety, security, and environmental services. Additionally, several Officers will assume new responsibilities, including: Ginger Hardage, Senior Vice President Culture and Communications; is responsible for Culture Services and both Internal and External Communications.  Jeff Lamb, Senior Vice President Administration and Chief People Officer; is responsible for Corporate Security, People and Leadership Development, and Purchasing.  Daryl Krause, Senior Vice President Customer Services; is responsible for Reservations, Provisioning, Fuel Management, Customer Relations, and Inflight.  Jeff and Daryl will also join Southwest’s Executive Planning Committee.  “The awesome task before us is to ensure the continued prosperity of Southwest Airlines—one of the greatest success stories in American business,” Kelly said.  “We all pledge to continue to keep the LUV alive and the Warrior Spirit strong that Herb and Colleen have inspired in all 34,000 Southwest Employees.”  After 37 years of service, Southwest Airlines, the nation’s leading low-fare carrier, continues to stand above other airlines—offering a reliable product with exemplary Customer Service. Southwest Airlines is the most productive airline in the sky and offers Customers a comfortable traveling experience with all premium leather seats and plenty of legroom.  Southwest recently updated its gate areas and improved its boarding procedure to make flying Southwest Airlines even more convenient and simple. Southwest Airlines (NYSE: LUV), the nation's largest carrier in terms of domestic passengers enplaned, currently serves 64 cities in 32 states. Based in Dallas, Southwest currently operates more than 3,400 flights a day and has more than 34,000 Employees systemwide.   www.southwest.com ... View more

By Terry Maxon With Colleen Barrett's move from Southwest Airlines president to simply a fulltime employee as of Wednesday, we had a story Tuesday morning marking the occasion. Of course, the story could include only a small bit of our interview with Colleen. Ergo, below, we have more excerpts. DMN: What are you going to do after you step down as president? Colleen: I'm going to do more of the same, just without any authority, without any budget. Of course, that's not that much different. But really I'm very excited. I'm going to do one major change for me, monumental. It seems silly, but it's monumental to me. I'm 63 years old. I've worked since I was a junior in high school. I have worked seven days a week all that time. Not because anyone made me because that's just who I am, that's what I do. I might take off a holiday, but a long weekend would be a long vacation for me. I am literally as of July 18, I am not going to work any more weekends. That is like someone else going on a sabbatical. So that' s huge for me.   To read more, visit:  http://aviationblog.dallasnews.com/archives/2008/07/more-of-c.html   To read Terry's posts from the week that Herb Kelleher stepped down from his role as chariman, visit: http://aviationblog.dallasnews.com/archives/2008/05/herb-week-part-1.html ... View more

The Most Influential Woman in Aviation Steps Back from Management Role —Company Throws a Good Old Fashioned Surprise Party! DALLAS – July 15, 2008 - The clamoring of cowbells and a rendition of a Willie Nelson song is not what you would expect to hear in the lobby of a Fortune 500 company; but then again, Southwest Airlines is famous for doing the unexpected! Southwest Executive Colleen Barrett, who leaves her role as President effective today, was honored by Employees in Dallas with a surprise tribute to show appreciation for her years of Servant Leadership. (Colleen will remain a fulltime Southwest Employee through July 2013.) The monumental event was centered on hundreds of Southwest Employees cheering for a woman the Company LUV built affectionately calls its “Queen of Hearts.”  “Well, we all know that Colleen doesn’t like surprises!  But, we also know that Colleen can’t be totally surprised that her Southwest Family wanted to make this day a little extra special for her,” said Southwest CEO Gary Kelly. “The transition from an extremely hardworking President to an extremely hardworking Southwest Employee is a huge milestone. From the 34,000 Southwest Family Members – job well done, Colleen Barrett – we’ll see you tomorrow!” As Colleen’s Southwest Family gathered at Corporate Headquarters to mark her last official day as President, the Employees celebrated the milestone exactly the way Colleen’s mother would have wanted – with the ringing of cowbells.  The ringing of cowbells is a tradition that dates back to Colleen’s childhood in Bellows Falls, Vermont.  Her mother used to ring ”that darn cowbell,” as Colleen would say, every time she or her brothers would accomplish a significant goal or celebrate a colossal moment in their lives.  In fact, the distinctive sound of “that darn cowbell” marked many historic milestones for Colleen, and today was no exception.  Video footage/photos of the celebration and Colleen Barrett can be found at the following links: Online celebration video: http://www.youtube.com/watch?v=7BZw_TDCfek Additional video footage: http://gallery.swamedia.com/videos/value=open/type=video Photos: http://gallery.swamedia.com/photos/kw=SWApeopleOfficers     About Colleen Barrett: Prior to joining Southwest (in 1978), Colleen Barrett worked for several years as an Executive Assistant to Herb Kelleher (Southwest’s Founder and former Executive Chairman) at his law firm. For Southwest Airlines, she has served as Secretary of the Corporation since March 1978; and served as Vice President Administration from 1986 to 1990; Executive Vice President Customers from 1990 to 2001; and President from 2001 to present. Colleen has been named one of the "World’s 100 Most Powerful Women," by Forbes.com (2005, 2004); one of the "50 Most Powerful Women in Business," by Fortune (2003, 2002); and one of the "100 Most Influential Women in Aviation," by Women in Aviation International (WAI) (2003); in addition, Colleen has been presented the Horatio Alger Award (2005); Texas Trailblazer Award (2005); Tony Jannus Award (2007); IWF Woman Who Makes A Difference Award (2004); and she was inducted into the International Pioneer Hall of Fame as a Woman in Aviation, (2005). www.southwest.com   ... View more

By TERRY MAXON / The Dallas Morning News The mom of Southwest Airlines Co. is about to become mom emeritus. To call Colleen Barrett "Mom" might seem demeaning, considering that she has been the highest-ranking woman in the airline industry for years, even before she was named president of Dallas-based Southwest in 2001. But Ms. Barrett, who steps down from her president's job at midnight today, knows what the label means. "I'm OK with Mom," Ms. Barrett said last week. "I'm OK with Grandma. That's what I said at the shareholders' meeting [May 21]. It's time for me to take the next step with grandmotherhood." Like her longtime boss, Herb Kelleher, who gave up his chairman's job in May, Ms. Barrett is leaving her executive's job but staying with the airline for at least five years, with duties to be defined by chief executive Gary Kelly.   To read more, visit:  dallasnews.com/sharedcontent/dws/bus/industries/airlines/stories/071508dnbusbarrett.4019e17.html ... View more

Southwest Airlines and Thrifty Team up to Offer Triple Credits to Members of the Carrier's Frequent Flyer Program DALLAS, July 14 -- Southwest Airlines welcomes Thrifty Car Rental as a new preferred partner to the airline's award-winning frequent flyer program, Rapid Rewards. The partnership with Thrifty, effective July 11, 2008, will allow the Southwest Airlines Rapid Rewards' program to acquire new Members from Thrifty and build additional brand loyalty with co-branded promotions. To celebrate the kickoff, now through Oct. 31, 2008, Members can receive triple credit on a weekly rental of five or more days. (That's 1.5 credits per transaction versus the standard 0.5 credit per transaction). For more information, including terms and conditions, visit http://www.southwest.com or http://www.thrifty.com. "This new partnership with Thrifty will bring tremendous value to our Customers and to the Rapid Rewards program," said Ryan Green, Southwest Airlines' Director of Customer Loyalty. "We are very proud to welcome Thrifty onboard to assist us in getting Customers to their favorite destinations." "We are simply elated that Thrifty is joining one of the premier rewards programs in the airline industry," said Brian Carpenter, Vice President, Sales & Marketing, Dollar Thrifty Automotive Group. "We always felt Southwest Airlines and Thrifty would be a natural union for customers looking for exceptional value in the air and on the ground." Since 2004, Thrifty Car Rental has sponsored Southwest Airlines' "Star of the Month" Employee recognition program, providing a free car rental to every featured Employee. Thrifty's sister company, Dollar Rent A Car, has been a Preferred Partner with Southwest Airlines' Rapid Rewards since July 1, 1999. It is fast and easy to earn free travel through Rapid Rewards. Rapid Rewards Members earn credits by flying or using the program's Preferred Partners, like Thrifty Car Rental. It takes just eight roundtrips to qualify for an Award, but Members can accelerate their earnings by using the Southwest Airlines Rapid Rewards Visa Signature Card, doing business with any of the airline's other Preferred Partners, or by purchasing Southwest's Business Select fares when flying. Plus, once it's earned, the Award may be transferred to anyone. The Award is free but subject to the U.S. government September 11th Security Fee of up to $10 roundtrip. About Southwest Airlines After 37 years of service, Southwest Airlines continues to differentiate itself from other low fare carriers-offering a reliable product with exemplary Customer Service. Southwest Airlines is the most productive airline in the sky and offers Customers a comfortable traveling experience. Southwest recently updated its gate areas and improved its boarding procedure to make flying Southwest convenient and simple. Southwest Airlines (NYSE: LUV), the nation's largest carrier in terms of domestic passengers enplaned, currently serves 64 cities in 32 states. Based in Dallas, Southwest currently operates more than 3,400 flights a day and has more than 34,000 Employees systemwide. About Thrifty Car Rental Thrifty Car Rental is a subsidiary of Dollar Thrifty Automotive Group, Inc. (NYSE: DTG), a Fortune 1000 Company headquartered in Tulsa, Oklahoma. Together with its corporately-owned locations and those of its franchise owners, the Thrifty Car Rental brand serves value-conscious travelers from more than 1,028 locations in 68 countries. For additional information, visit http://www.dtag.com or http://www.thrifty.com. ... View more

  Colleen Barrett, President of Southwest Airlines was a recent speaker at the Wharton School of Management at the University of Pennsylvania. Her speech to Wharton MBA candidates during the 12th annual Wharton Leadership Conference was about servant leadership.    To read the Freight Dawg article and view a video from the event, visit: http://www.freightdawg.com/2008/07/southwest-airli.html ... View more

By Julie Johnsson | Tribune staff reporter Chicago figures large in Southwest Airline's plans to expand overseas for the first time. In excerpts from a late June interview, Southwest CEO Gary Kelly maps out his international strategy and explains the complex fuel hedges that have given his carrier the financial muscle to expand while other airlines contract. On Tuesday, Southwest announced plans to code-share with Canada's WestJet. Kelly, speaking earlier, wouldn't name the low-cost carrier's first overseas partner, but described its likely impact on Midway. KELLY: Chicago is going be one of the No. 1 locations that we will want them to fly to, i.e. Midway. So, it may not be a Southwest flight, but you're going to see more flight activity and we'll be connecting more passengers to Chicago at a minimum. It's a hub-like effect, without us having all the trappings and inefficiencies of a hub-spoke system. So you could have many more destinations being added to Midway by one or two code-share partners. I would see Chicago being an attractive destination from Hawaii -- ATA flew there -- from Canada, certainly, Mexico and probably the Caribbean as well. So, there could be a lot of action, and not just with Southwest flights. Now, eventually, we want to add Europe and Asia as code-share destinations. We can't do everything simultaneously, so we'll pace all this out. We've made the near-international markets our first priority. And to come online in 2009, maybe some of it will spill into 2010. And then we don't have any efforts under way beyond that, but at some point here we will and with a little luck maybe we can add Europe and Asia in 2010, 2011 We're not just thinking that we will code-share internationally. We will very well eventually begin to think about our own flights to these entities. I don't know if Hawaii will ever make sense for us. But certainly Canada, Mexico and the Caribbean ought to be eligible in our own route planning. But it's an added layer of complexity and change and investment compared to where we are. Numbers-crunchers at Southwest Airlines were already studying how to hedge fuel costs when Kelly joined the airline as controller in 1986. Kelly, who was named CEO in 2004, discusses how he convinced the airline's board to start hedging, then to double down its bet. KELLY: If you get a mortgage, you're required to have homeowners insurance. That's all this is. It's a little different form, but it is insurance against catastrophic rises in energy costs. I remember very vividly when Iraq invaded Kuwait. We were paying about 57 cents a gallon for energy [jet fuel] at the time. And it went to 90 cents a gallon in pretty short order. By January of 1991, the advent of the war, we had a program in place. It was primitive. But from that point forward, we've had our "insurance" policy in place every year. We have never lost money with our hedges. To read more, visit:  http://www.chicagotribune.com/travel/chicago-southwest-gary-kelly-interview-jul8,0,7106031.story     ... View more

There have been many news stories over the last two days regarding a family that was denied boarding on a Southwest Flight out of Phoenix on Friday, July 4, 2008, owing to unruly behavior onboard their previous flight.    Over the course of a four-hour flight from Detroit to Phoenix, our Flight Crew developed a genuine concern for the well-being of children involved in this particular situation.  Our Crew exhausted all of their resources to resolve the situation, but it became clear them that they needed to address the situation before it escalated further – a concern that has since been echoed in a police report and by other passengers that were onboard the flight.      The family’s interaction with authorities in Phoenix prevented our Employees from communicating with them in order to offer other travel options and accommodations; however, we contacted them yesterday and are refunding the entire cost of their tickets.     Southwest Airlines carries countless numbers of families each year without incident, and is successful in assisting parents to follow Federal rules and guidelines onboard.  Ultimately, we are responsible for the Safety of all of our passengers, even the passengers whose behavior appears to jeopardize that Safety.      ***UPDATE*** I certainly understand many of the feelings expressed below regarding children with Autism; however, it is important to understand that this situation was not related to the fact that a child has Autism.   The issue was related to the Safety of our Customers, and, as stated in the post above, a genuine concern for the well-being of children involved. It is unfortunate that these situations get played out in the media – the facts of the story are never presented in their entirety. And, the truth is, it is neither appropriate nor desirable for us as a Company to promote the details to the general public as we would never want to publicly criticize or embarrass our Customers.  We value all of our Customers and begin every day and every flight with the desire for each person to have a wonderful experience with us. When circumstances prevent that from happening, we try to address those situations in the most responsible and respectable manner possible.  Although this situation was not related to a child having autism, I assure you that Southwest Airlines is committed to providing courteous and efficient service to all of our Customers with disabilities and assisting them in a manner consistent with federal law and Company procedures.  ... View more

Want to Get Away - Eh? Southwest Airlines to Offer International Service via Pact With Canadian Carrier WestJet, Service Scheduled for Late 2009 Southwest Airlines and WestJet Take First Step Toward Codeshare Partnership, Opening a New Gateway Between United States and Canada   DALLAS, July 8-- Southwest Airlines today announced its intention to build a codeshare partnership with Canadian carrier WestJet. The two airlines have completed the first step in creating a relationship that will eventually allow the carriers to offer Customers a seamless travel experience to a wide array of destinations. This initial agreement puts the two airlines on a path toward bringing more low fares and a better Customer experience across the U.S./Canadian border. The airlines plan to announce codeshare flight schedules and additional features regarding the partnership by late 2009. Certain details of the codeshare and elements of the partnership are subject to approvals by both the U.S. and Canadian governments. "A company's dedication to Culture and Customer Service are very high on our priority list when considering a relationship of any kind," said Southwest Airlines Chairman and CEO Gary Kelly. "We are confident that we've found a perfect fit with WestJet, and we are excited to work toward opening our expansive U.S. network to include Canadian destinations." WestJet was founded in 1996 as a western Canadian regional carrier with three aircraft flying to five cities. Today, WestJet is Canada's leading high-value, low-fare airline, offering scheduled service to 49 destinations in Canada, the United States, Mexico, and the Caribbean. The airline operates a fleet of 75 Boeing Next-Generation 737-series aircraft. "This is a defining moment for WestJet. Clearly, we are delivering on our strategic plan with this announcement today. It marks an important step forward for our guests and their ability to fly to more destinations in the United States conveniently and cost effectively," said WestJet President and CEO Sean Durfy. "When you examine our network in Canada and Southwest's network in the United States, and the potential to significantly improve both organization's market access, this is indeed a great day." The airlines are not ready to announce routes, schedules, or fares at this point, but the agreement will eventually allow each carrier to check both Customers and baggage to a passenger's final destination. The codeshare partnership is intended to provide convenient, viable connecting schedules. In addition, southwest.com will soon become a distribution channel for WestJet's existing Canadian and transborder flights, providing Customers the opportunity to purchase WestJet's existing flights via southwest.com (this option will be online before actual connecting codeshare flights are available for purchase). Other items that are on the list of things to consider include an integration of each carrier's frequent flier program, ground handling opportunities, and a possible extension of the carriers' cargo products. "We are quickly moving forward with our plans to enter the international market with WestJet, an airline partner that we hold in high esteem," Kelly said. "We have a very talented group of Employees who will continue to work diligently over the next year to develop and deliver a superior international codeshare product into the marketplace." "It is an honour to partner with one of the great airline success stories of the world," Durfy said. "The effort put forth by Gary Kelly and his management team to negotiate this relationship is most appreciated and I look forward to building a great bond with Southwest. Together we will demonstrate that low- cost, high-value airlines represent the future success of air travel." About Southwest Airlines After 37 years of service, Southwest Airlines, the nation's leading low-fare carrier, continues to stand above other airlines -- offering a reliable product with exemplary Customer Service. Southwest Airlines is the most productive airline in the sky and offers Customers a comfortable traveling experience with all premium leather seats and plenty of legroom. Southwest recently updated its gate areas and improved its boarding procedure to make flying Southwest Airlines  even more convenient and simple. Southwest Airlines (NYSE: LUV), the nation's largest carrier in terms of domestic passengers enplaned, currently serves 64 cities in 32 states. Based in Dallas, Southwest currently operates more than 3, 400 flights a day and has more than 34,000 Employees systemwide. About WestJet WestJet is Canada's leading high-value low-cost airline offering scheduled service throughout its 49-city North American (including Hawaii), Mexico and Caribbean network. Named Canada's most admired corporate culture in 2005, 2006, and 2007, WestJet pioneered low-cost flying in Canada. WestJet offers increased legroom and leather seats on its modern fleet of 75 Boeing Next-Generation 737 aircraft, and live seatback television provided by Bell ExpressVu. With future confirmed deliveries for an additional 46 aircraft, bringing its fleet to 121 by 2013, WestJet strives to be the number one choice for travellers. This news release contains forward-looking statements related to Southwest's intention to offer international service through an alliance with WestJet. Specific statements relate to the anticipated impact of such alliance on Southwest's routes, fares, and Customer experience. These forward-looking statements are based on Southwest's current intent, beliefs, and expectations and are not guarantees of future results. These statements involve risks, uncertainties, assumptions, and other factors that could cause actual results to vary materially from those expressed in or indicated by them. Factors include, among others, (i) the companies' ability to negotiate mutually agreeable codeshare terms and their receipt of necessary governmental approvals, (ii) consumer interest in, and demand for, the combined offering; (iii) the impact of competitive offerings; and (iv) economic and related uncertainties that could impact the ability of the two companies to fully implement all of the initiatives currently contemplated by their alliance. http://www.southwest.com   ... View more

Southwest Airlnes was named Brand Champions of the Day on Rex Whisman's Brand Champion's Blog.   Thanks, so much, Rex!   Brand Champions of the Day- Southwest Airlines For those of you who know me, or who have seen me present, you know I often cite Southwest Airlines as a case study. If I am not mistaken, they are the only US carrier to experience a profit each quarter since 9/11. They are also one of the only US carriers that still have relatively affordable airline ticket prices, and are not in the process of eliminating routes.   To read more, visit:  http://www.brandchampionsblog.com/my_weblog/2008/07/brand-champions-of-the-day--southwest-airlines.html         ... View more

  Travel Expert Terry Trippler offers the following video on the subject of "back-to-back" and "hidden city" ticketing.  Guess what? Southwest Airlines is the ONLY airline that doesn't prohibit either practice. There is a great deal of speculation that with "Saturday night stay" requirements coming back into play, business travelers will once again engage with the legacy carriers in booking "back -to-back" tickets to get around that restriction and the higher priced tickets. Just one more way we don't nickel and dime our Customers!!! To view the video, visit: http://www.ourtakeonnews.com/ ... View more

  The Wall Street Journal published an article today with the headline “Airline Cuts Hit Fliers Who Planned Early.”  You can read the article by visiting: http://online.wsj.com/public/article_print/SB121494566858520581.html .   The story, in  a way, validates our long-standing strategy of offering a shorter booking window, which has been eloquently explained by Southwest Schedule Planner and Star Blogger Bill Owen in several earlier posts on this blog (WHY CAN'T I MAKE RESERVATIONS FURTHER IN ADVANCE?, I BLOGGED. YOU FLAMED. WE CHANGED., and READY...SET....BOOK!)   ... View more

          DALLAS, TEXAS – July 2, 2008-- Southwest Airlines Co. (NYSE: LUV) announced today that the Company flew 6.9 billion revenue passenger miles (RPMs) in June 2008, a 0.7 percent increase from the 6.8 billion RPMs flown in June 2007.  Available seat miles (ASMs) increased 5.7 percent to 8.8 billion from the June 2007 level of 8.3 billion.  The load factor for the month was 78.2 percent, compared to 82.1 percent for the same period last year.             For the second quarter 2008, Southwest flew 19.8 billion RPMs, compared to the 19.0 billion RPMs recorded for the same period of 2007, an increase of 4.2 percent.  Available seat miles increased 5.4 percent to 26.3 billion from the second quarter 2007 level of 25.0 billion.  The second quarter 2008 load factor was 75.2 percent, compared to 76.1 percent for the same period last year.             For the first half of 2008, Southwest flew 37.4 billion RPMs, compared to the 35.1 billion RPMs recorded for the same period in 2007, an increase of 6.5 percent.  Available seat miles increased 5.9 percent to 51.5 billion from the 2007 level of 48.7 billion.  The year-to-date load factor was 72.6 percent, compared to 72.2 percent for the same period last year.             This release, as well as past news releases on Southwest, are available online at southwest.com. ... View more

  Carrier Uses New Optimization Model to Grow in Denver and Tweak Flight Schedule DALLAS – June 26, 2008 – Bucking the current industry trend to reduce capacity and flights, Southwest Airlines announced today that the carrier will utilize a brand new optimization model to add service in select markets and tweak its schedule.  Through the elimination of 31 existing roundtrip flights from its current flight schedule, Southwest has added 40 new roundtrip flights in key growth cities such as Denver and Ft. Lauderdale/Hollywood.  To view a complete chart of the schedule changes in each city, click here: http://ma-devl-test/swamedia/media_home.html.  To view a blog post from Schedule Development Lead Planner, Bill Owen, explaining the airline’s optimization efforts, click here: http://www.blogsouthwest.com/blog/winter-is-now-for-sale.  To book flights, click here: http://www.southwest.com/?src=PRPRPRNDENV000000080626.    “We are trimming our flight schedule, frequently and continually, of unproductive flights, while we continue to grow in cities like Denver,” Southwest Airlines CEO Gary Kelly said.  ”We have a much different story to tell today than our competitors.  We are well prepared financially, we are the nation’s Leading Low Fare Airline, we are still growing, and our People provide outstanding Customer Service.  Best of all, we don’t nickel and dime our Customers with added fees.”     The Company will be accommodating this new service with two aircraft that it previously planned to retire, bringing this year’s net aircraft growth to 15.  The Company’s 2008 year-over-year available seat mile (ASM) capacity growth is still expected to be in the four percent range.   Several markets will be gaining new nonstop service, including:   BEGINNING NOV. 2, 2008: • Three new daily nonstop roundtrips between Denver and Orange County.  • Two new daily nonstop roundtrips between Denver and Tulsa.  • One new daily nonstop roundtrip between Ft. Lauderdale/Hollywood and Las Vegas. • One new daily nonstop roundtrip between Ft. Lauderdale/Hollywood and Kansas City. • One new daily nonstop roundtrip between Ft. Lauderdale/Hollywood and Albany.  • One new daily nonstop roundtrip between Ft. Myers and St. Louis.    To celebrate the new nonstop service, Southwest is offering a $69 one-way advance purchase fare between Denver and Tulsa and a $79 one-way advance purchase fare between Denver and Orange County.  Southwest is offering an $89 one-way advance purchase fare between Ft. Lauderdale/Hollywood and Kansas City and Albany and a $149 one-way advance purchase fare between Ft. Lauderdale/Hollywood and Las Vegas.  The carrier will offer a $69 one-way advance purchase fare between Ft. Myers and St. Louis.  These 14-day advance purchase fares are available for purchase today at southwest.com for travel beginning on Nov. 2, 2008, through the end of the schedule, currently Jan. 9, 2009.   NEW SERVICE FARE RULES Fares are available for purchase today through the end of the schedule, currently Jan. 9, 2009.  Fares are for nonstop flights only and do not require an overnight stay. All tickets must be purchased 14-days in advance. When combining fares, all ticketing restrictions apply. Seats are limited. Fares may vary by day of travel and will not be available on some flights that operate during very busy travel times and holiday periods. Fares do not include a federal segment tax of $3.50 per takeoff and landing.  Fares do not include airport-assessed passenger facility charges (PFC) of up to $9.00 one-way and U.S. government-imposed September 11th Security Fees of $5.00 one-way.  Fares are subject to change until ticketed.  Tickets are nonrefundable but, if unused, may be applied toward the purchase of future travel on Southwest Airlines.  Fares are valid on Southwest-operated published, scheduled service only and are not available through the Group Desk.   Southwest is the only U.S. airline to remain consistently profitable this decade, and enjoys an unprecedented string of 35 consecutive years of profitability.  Southwest has among the lowest cost structures, a strong balance sheet, and the most comprehensive fuel hedge of any major U.S. airline.  At Southwest Airlines, fees don’t fly with us.  You can check your first two bags for free, there are no change fees, no fees for a window or aisle seat, and, as always, snacks, sodas, and smiles are all complimentary! After 37 years of service, Southwest Airlines, the nation’s leading low-fare carrier, continues to differentiate itself from other airlines—offering a reliable product with exemplary Customer Service. Southwest Airlines is the most productive airline in the sky and offers Customers a comfortable traveling experience.  Southwest offers a very comfortable ride with all premium leather seats and plenty of legroom with a young all Boeing 737 fleet.  Southwest recently updated its gate areas and improved its boarding procedure to make flying Southwest even more convenient and simple. Southwest Airlines (NYSE: LUV), the nation's largest carrier in terms of domestic passengers enplaned, currently serves 64 cities in 32 states. Based in Dallas, Southwest currently operates more than 3,400 flights a day and has more than 34,000 Employees systemwide. www.southwest.com ... View more