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Southwest Airlines

 
Hoover's Profile: Southwest Airlines Co.
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Southwest Airlines Co.
2702 Love Field Dr.
Dallas, TX 75235
TX Tel. 214-792-4000
Fax 214-792-5015

Type: Public
On the web: http://www.southwest.com
 Employees: 35,499
Employee growth: 3.3%

Southwest Airlines will fly any plane, as long as it's a Boeing 737, and let passengers sit anywhere they like, as long as they get there first. Sticking with what has worked, Southwest has expanded its low-cost, no-frills, no-reserved-seats approach to air travel throughout the US to serve about 65 cities in more than 30 states. Now among the leading US airlines, Southwest nevertheless stands as an inspiration for scrappy low-fare upstarts the world over. The carrier has enjoyed 35 straight profitable years amid the airline industry's ups and downs. In August 2009 Southwest made a move to expand westward when it placed a $170 million bid to buy troubled airline Frontier, but the bid was rejected.

Key numbers for fiscal year ending December, 2008:
Sales: $11,023.0M
One year growth: 11.8%
Net income: $178.0M
Income growth: (72.4%)

Officers:
Chairman, President, and CEO: Gary C. Kelly
EVP and COO: Michael G. (Mike) Van de Ven
SVP Finance and CFO: Laura H. Wright

Competitors:
AMR Corp.
Continental Airlines
JetBlue

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Incorporated: 1967 as Air Southwest Co.
NAIC: 481111 Scheduled Passenger Air Transportation; 481112 Scheduled Freight Air Transportation

Southwest Airlines Co. (SWA), the model for budget upstarts everywhere, has become the largest domestic airline in the United States, by number of passengers carried. More than 70 million passengers fly SWA each year to about 60 destinations around the country. Passengers have found that Southwest's rock bottom pricing creates almost a new form of transportation, more in competition with the automobile than other airlines. They are willing to forsake in-flight meals, baggage transfers, and other traditional frills for economically amenable wings.

The company flies only Boeing 737s, to simplify maintenance and training, and employee productivity is high. Planes are turned around for their next flight in just 15 minutes, one-third the industry average. Though the airline has boosted its wages and taken on other aspects of a traditional airline, such as its first codeshare arrangement, Southwest remains a maverick in the industry.

Southwest Air was founded in 1966 when a group of Texas investors, including Rollin King, M. Lamar Muse, and Herbert D. Kelleher, pooled $560,000 to form the Air Southwest Company. Incorporated in 1967, the company was envisioned as a commuter airline serving three cities within Texas: Dallas, Houston, and San Antonio. Although the Texas Aeronautics Commission (TAC), the regulatory body responsible for overseeing aviation within the state, granted the company permission to fly the routes it had requested in February 1968, three competing airlines filed suit to prevent the airline from getting off the ground. Kelleher, an attorney whose stake in the airline was a mere $20,000, took the case all the way to the U.S. Supreme Court, and in December 1970 this court ruled in favor of Air Southwest.

Six months later, after fighting numerous legal battles, changing its name to Southwest Air, and selling stock in the company, the fledgling airline began operations on June 18, 1971. Under the stewardship of President M. Lamar Muse, the airline offered six daily roundtrip flights between Dallas and San Antonio, and 12 daily roundtrip flights between Dallas and Houston. One-way tickets cost $20.

Courting the commuter, the company stressed "no-frills" convenience and, in reference to Love Field in Dallas, its home base, made "love" its promotional theme. Flight attendants were dressed in hot pants and go-go boots to serve "love potions" and "love bites" (also known as drinks and peanuts) to the company's clientele of mostly male business fliers. Southwest made much of its scantily clad women, whose pin-up-like images would eventually appear widely, including on the cover of Esquire magazine.

By the end of 1971, Southwest owned four aircraft, offered hourly flights between Dallas and Houston, and had inaugurated service between San Antonio and Houston, completing the last leg of a triangular route. In the following year, the company transferred its Houston service from Houston Intercontinental Airport to William P. Hobby Airport, located much closer to the city's downtown, in an effort to become more convenient to commuters. In 1973, Braniff Airlines began a fare war with Southwest over service from this airport to Dallas. Southwest resorted to giveaways of liquor, leather ice buckets, and 50 percent discounts on fares. The company also introduced cargo service between the airports it served and by the end of 1973 had notched its first profitable year, carrying over half a million passengers.

Southwest again found itself involved in legal controversy in 1972, when the cities of Dallas and Fort Worth and their Regional Airport Board filed suit to force the airline to move from Love Field to the newly constructed Dallas-Fort Worth regional airport, hoping that by charging higher landing fees and rent there, they could help offset the cost of the expensive project. While all the other airlines had signed a contract to move to the new airport in 1968, Southwest had not done so because it was not in existence at that time. In a big break for Southwest, a federal judge ruled in 1973 that the airline could continue to operate at Love Field in Dallas as long as the airport remained open. Thwarted, the Dallas City Council subsequently passed a law closing the airport to all scheduled airlines, but this law was thrown out in court.

In 1974, Southwest's competitors began moving out to the Dallas-Fort Worth Airport, leaving the airline with a monopoly on service from the cheaper, more convenient airport. After defeating yet another legal challenge, this one from the other carriers, Southwest was able to solidify its presence at Love Field and its newly renovated facilities at Houston's Hobby Airport, making its strong commuter service the basis for broader operations.

This expansion began in 1975, when the airline inaugurated service to the Rio Grande Valley, with four roundtrip flights each day to Harlingen. By the end of that year, the company had acquired a fifth plane, and its stock was listed on the American Stock Exchange under the ticker symbol "LUV." In the following year, Southwest laid plans to extend service to five other Texas cities and again found itself the object of hostile litigation by competitors.

In 1977, the airline put into effect its plan to offer service from Corpus Christi, Lubbock, Midland/Odessa, El Paso, and Austin. Its stock was transferred to the New York Stock Exchange, and the company issued its second and third quarterly dividends, the latter totaling seven cents per share. In May of that year, the airline exceeded the five million passenger mark.

In 1978, Congress passed the Airline Deregulation Act, fundamentally altering the nature of the airline industry. Although Southwest was now legally free to greatly expand its operations, the company planned conservative growth to avoid the perils of taking on large debts.

In early 1978, the airline applied for permission to purchase a wholly owned subsidiary, Midway (Southwest) Airway Company, in order to inaugurate service from Chicago's Midway Airport to six midwestern destinations. Although it received tentative approval to do so, Southwest abandoned this ambitious attempt at expansion in August. Instead, the company added service to the mid-sized Texas city of Amarillo and the Jefferson County Airport. In July 1978, the company implemented its first fare increase since 1972, adding three dollars to the cost of a one-way ticket, and five dollars for a roundtrip fare. By the end of the year, the airline's fleet had grown to 13 Boeing 737 planes.

In March 1978, significant changes were made in Southwest's upper-level management. After a dispute with the airline's governing board, President M. Lamar Muse, who had largely shaped the company during its early years, was deposed by the board and replaced by lawyer Kelleher, who became chairman. In August, Howard D. Putnam, a United Airlines executive, became president and chief executive officer.

In 1979, Southwest introduced self-ticketing machines in many of its airports to speed up and simplify passenger ticketing, and the airline introduced service to New Orleans, its first destination outside Texas. In late December 1979, earlier opponents of Southwest's continuing use of Love Field won a partial victory in Congress. Speaker of the House Jim Wright, a Congressman from Texas, attached a rider to a federal trade law which forbade traffic between Love Field and any states other than Louisiana, Arkansas, Oklahoma, and New Mexico, the four states surrounding Texas. This severe limitation of Southwest's interstate flights from its hub forced the airline to conform to its established role as a commuter service for the energy belt, now in a severe depression. The airline inaugurated service to Oklahoma City, Tulsa, and Albuquerque in April 1980.

Earlier that year, Southwest was hit by a machinists' strike, which curtailed operations for several weeks. The company brought in temporary workers to keep 12 of its 18 planes flying, and the union eventually settled for what the airline had initially offered.

In 1981, celebrating its tenth year of operation, the airline introduced a multimedia advertising campaign featuring the theme, "Loving you is what we do," and produced an ad picturing six Southwest flight attendants, all purportedly "physical 10s," grouped around a birthday cake, promising, "You ain't seen nothin' yet." In June 1981, the airline was found guilty of sex discrimination in a class action suit filed by a man seeking a job as a ticket agent and ordered to cease its discriminatory hiring practices. Also in 1981, after a series of petition drives, stewardesses won the right in their new contract not to wear hot pants on the job.

In September 1981, President Howard Putnam resigned to become the head of Braniff International Airlines, and was succeeded as president and chief executive officer by Chairman Kelleher, who brought his flamboyant personal style to the job of running the airline. With Kelleher at the helm, the airline's pace of expansion picked up markedly, despite the nationwide recession and difficulties arising from an air traffic controllers' strike. In early 1982, Southwest introduced service from Kansas City, Missouri, to seven destinations. Just a few weeks later, the airline made its entry into the western air travel market when it began flights from San Diego, Las Vegas, and Phoenix. Additional California service was inaugurated that fall, when Los Angeles and San Francisco came on line.

The airline's steady growth continued in 1983, as it added customers, flights, and airplanes. The company ratified a two-tier wage system, secured a one-year pay freeze from its pilots' association, and signed contracts with several of its unions, including its mechanics and flight attendants. Service from Denver began in May 1983.

In a departure from its previous policy of sticking to short-haul flights, Southwest inaugurated two routes between Texas and California--El Paso to Los Angeles and San Antonio to Los Angeles--as well as a major north-south California route from San Diego to San Francisco. Entry into these long-haul markets, coupled with bad weather throughout the Southwest region, curtailed profits somewhat during this period.

In 1984, helped by ongoing peace with its labor unions, Southwest continued to increase capacity and rack up steady profits, despite growing competition from Continental, Braniff, and Muse Air, founded by the former president of Southwest. In July 1984, the company implemented limited cost-cutting measures, paring back unprofitable flights and reducing new hires. The company took delivery on the first of a new generation of planes, the Boeing 737-300, and introduced service from another midwestern city, Little Rock, Arkansas.

The following year, Southwest further expanded its midwestern network of routes, adding flights to St. Louis and Chicago's Midway airport. The company unveiled its "Just Say When" promotion, touting itself as the most convenient way to travel. The airline also made its first big acquisition when it paid $60 million for Muse Air Corporation, a Houston-based competitor, to prevent another competitor, Continental Airlines, from snatching it up. Unlike Southwest, Muse Air offered longer flights and full service to its customers. Kelleher kept the full-service frills and renamed the airline Transtar. In its first year, the money-losing company was able to turn a small profit.

By 1986, Southwest had scheduled flights from 25 cities. The airline introduced a number of fare-cutting measures in efforts to maintain its market share in the heavily competitive post-deregulation airline industry. "Incredible Pair Fares," "Fly Now, Pay Less," programs, $25 tickets for senior citizens, and finally "Fun Fares" became part of the strategy to lure more fliers to the skies. In addition, the airline was waging a fare war at its Phoenix hub against America West Airlines, offering flights between California and Arizona for $25.

During the summer of 1986, the airline stepped up the hoopla surrounding its low fares, making "fun" its new corporate byword and implementing a "fun" uniform of golf shirts, surfer shorts, and tennis shoes, along with in-flight games and giveaways. In July, the golf shirts were replaced by red Southwest T-shirts asserting that "Southwest Fliers Have More Fun." In an effort to simplify ticketing, a drive-through ticket window was installed near the airline's Dallas hub in August 1986, and in October tickets became available through automatic teller machines at 7-Eleven stores in Corpus Christi, Texas.

By 1987, Southwest's full-service subsidiary Transtar was locked in head-to-head combat with Continental for service out of Houston's Hobby Airport. The competing airline hit Transtar with cheaper flights scheduled 15 minutes before and after every Transtar departure, and the Southwest subsidiary was soon draining off $2 million in losses every month. In August 1987, after suffering a net loss for the first quarter of the year, Southwest shut down Transtar. The Transtar debacle cut the company's year-end earnings by 60 percent.

Despite aggressive pricing, Southwest found its rapid expansion thwarted in some markets, as full-service rivals drove the airline out of Denver, hampered its ambitious plans for operations in Nashville, and continued to put up stiff resistance in Phoenix. In addition, the airline was fined $402,000 by the Federal Aviation Authority in 1987. Faced with the demands of business fliers, the company introduced its first frequent flier program. Unlike the programs of other airlines, which award prizes based on mileage accrued, Southwest's program was designed to reward the short-haul flier, allotting prizes on the basis of number of trips taken.

In 1988, Southwest President Kelleher announced plans to double the airline's size by 1994. His strategy for accomplishing this was to increase the frequency of flights between cities already on the Southwest route map and to open up new routes in California and the Midwest. In keeping with the airline's policy of flying out of airports that are close to urban centers, Southwest also switched its Detroit flights to Detroit City Airport from the more remote Metro Airport.

Also in 1988, as a sign of the ever growing airline's commitment to lightheartedness, Southwest painted one of its 737s to resemble a killer whale to celebrate the company's agreement to become the official airline of Sea World of Texas. Shamu One, named after Sea World's mascot orca, was eventually joined by Shamu Two and Shamu Three. When Federal anti-smoking regulations went into effect on all domestic flights, Southwest offered its passengers lollipops as a substitute for the now-banned cigarettes. Passengers on flights during the winter holiday season of 1988 reported that flight attendants were dressed as elves and reindeer, and that the pilot sang Christmas carols over the public address system while gently rocking the plane from side to side.

In the spring of 1989, Southwest began its planned assault on the California market and touched off a fare war with much larger carriers, such as American Airlines and United Airlines, when it introduced $19 fares from Oakland International Airport, in the San Francisco Area, to Ontario, a suburb of Los Angeles. Aiming to reach $1 billion in revenues for the year, Southwest planned continued expansion of its fleet of planes and added Indianapolis to its route map. In a novel pairing of businesses, the company offered, for a limited time, a free companion ticket to anyone buying a holiday meal at Kentucky Fried Chicken.

As a result of its steady growth, Southwest entered the 1990s as a major airline, with a fleet of 94 planes serving 27 cities. Relying on conservative financial management, the company was able to avoid the pitfalls of debt that crippled many other carriers in the early 1990s, and despite suffering a loss in its fourth quarter, turned an overall profit in 1990.

Southwest took advantage of the misfortunes of its competitors in 1991, scooping up market share abandoned by ailing US Air in California and by bankrupt America West in Phoenix, and buying gates at Midway Airport from its defunct Chicago competitor, Midway Airlines. By year's end, Southwest had 124 jets flying to 32 cities.

By 1992, the company's concerted push into the California market had proven profitable, and Southwest became the second largest carrier in the state. The company looked to the Midwest as its next largest site of expansion. When the Department of Transportation began ranking airlines based upon baggage handling, customer satisfaction, and on-time performance, Southwest outpaced its larger, more expensive colleagues to win the first "Triple Crown" in 1992. Moreover, it kept winning them year after year. In 1993, when Southwest was expanding to the East Coast via Baltimore/Washington International Airport, Southwest was the only major carrier to take home a profit.

Southwest aggressively pursued non-traditional means of ticketing passengers. It sidestepped Apollo and other established reservation networks in lieu of more direct contact with travel agents. It dubbed its own network SWAT, for Southwest Air Travel.

Takeovers of Morris Air and Arizona One in 1994 expanded the company's network still further. The company continued to add routes to the Midwest and California. Southwest followed suit with its low-budget peers by eliminating paper tickets.

In 1995, the company reached $2.8 billion in operating revenues. Within five years, Southwest had added more than 10,000 employees to its roster. Southwest commemorated its 1996 silver anniversary with a special plane called Silver One. Internet ticket sales debuted along with new Florida service, which added the carrier's 50th city in 1997.

For the 25th consecutive year, the carrier posted a profit in 1997, $317.7 million. Due to its low fares, the carrier by entering a market could increase the volume of passenger traffic fourfold, and some businesses used the availability of Southwest service as a prime criterion in choosing new locations. The airline's 2,300 flights per day, impressive safety record, and status as a much admired corporate citizen suggested it would long remain one of the industry's legendary survivors.

Southwest continued its eastern push in the late 1990s, entering New York (Islip) and exploiting a void in the Raleigh-Durham market left by retreating American Airlines and US Airways. It was also adding long-haul flights to its network.

In 2000, SWA introduced an online booking tool geared toward corporate travel offices called SWABIZ. This offered convenient access to Southwest's low fares rather than corporate discounts per se, an official told Business Travel News. Earnings were about $600 million on revenues of $5.6 billion in 2000.

In 2001, Southwest took legal action to prevent the Orbitz online booking site from displaying its fares. This move surprised some observers. Southwest complained of other airlines getting preferential treatment on the site, particularly the ones that owned Orbitz LLC. Southwest did allow the Sabre computer reservations system to list its flights, though reservations had to be made through Southwest.com.

The question of who would follow Southwest's inimitable leader and spokesman, Herb Kelleher, was resolved in June 2001. While retaining the office of chairman, he was replaced as president by the company's general counsel, James F. Parker, and as CEO by former executive vice-president for customers Colleen C. Barrett. (The two had previously worked together for Kelleher's law firm.)

Southwest was not immune to the effects of the September 11, 2001 terrorist attacks on the United States. Increased security following 9/11 made traveling by auto a more attractive choice for many. While its larger rivals laid off tens of thousands of workers, lost billions of dollars, and appealed for bankruptcy protection in the two years following the attack, Southwest remained profitable, avoided layoffs, and kept its employees working.

Southwest allowed the A&E Television Network to film a reality show on its planes beginning in 2003. The show was a clone of a British show centered on easyJet PLC, which itself was closely modeled after Southwest.

Success of the "major" airlines in wresting concessions from labor eroded one area of Southwest's relative competitive advantage as its own unions negotiated more lucrative compensation. Jim Parker retired as CEO in 2004 following contentious contract negotiations with the flight attendants' and mechanics' unions. He was succeeded by former CFO Gary C. Kelly.

After more than 30 years of consistently profitable growth, Southwest was flying more passengers than any other U.S. airline. Its 417 planes were making 2,900 hops a day to 59 destinations. Revenues continued to increase at a 10 percent clip, reaching $6.5 billion in 2004. The company's cargo business, from freight carried in its planes' belly holds, was small but growing, with $117 million in 2004. Earnings of $313 million were no record but were handsome compared to other airlines in the post-9/11 environment.

The airline continued to look for ways to cut costs. It trimmed its reservations staff as Internet booking became more popular. It installed winglets on its planes to cut fuel consumption and benefited greatly from hedging on oil prices.

Southwest entered the Philadelphia market in May 2004, mounting a robust challenge to a US Airways stronghold. The airline was also reviving a challenge to the decades-old law that kept Southwest from operating beyond adjacent states from Love Field. "Growth opportunities have become more precious," CEO Gary Kelly told Air Transport World. SWA entered its first codeshare agreement with the much smaller ATA Airlines in December 2004. This type of deal, common in the industry but surprising for the famously independent Southwest, allowed the two carriers to list and sell seats on each other's flights. Southwest also negotiated to buy six gates at Chicago's Midway Airport from ATA, bringing its total there to 25, and a 27.5 percent stake in ATA, which was in bankruptcy. The deal cost $117 million.

Moving into 2005, Southwest was facing many familiar challenges: rising oil prices, intense competition, cumbersome regulations. In the uncertain times that had legacy (traditional) carriers reeling, Southwest was still winging ahead with its ever-popular low-fare formula.

Principal Subsidiaries

API Terminal, Inc.; Southwest ABQ RES Center, Inc.; Southwest Jet Fuel Co.; TranStar Airlines Corporation; Triple Crown Insurance Ltd. (Bermuda).

Principal Competitors

AirTran Holdings, Inc.; AMR Corp.; Continental Airlines, Inc.; Delta Air Lines, Inc.; JetBlue Airways Corporation; United Airlines Inc.

Further Reading

Allen, Margaret, "SW Airlines' President Has a Customer-First Flight Plan," San Antonio Business Journal, August 31, 2001, p. 13.

Brooker, Katrina, "Can Anyone Replace Herb?," Fortune, April 17, 2000, pp. 186+.

Brown, David A., "Southwest Airlines Gains Major Carrier Status by Using Go-It-Alone Strategy," Aviation Week & Space Technology, March 5, 1990.

Chakravarty, Subrata N., "Hit "Em Hardest with the Mostest," Forbes, September 16, 1991.

"Corporate Case Study: Southwest Airlines Keeps PR Course with Flying Colors," PR Week (US), January 26, 2004.

Donnelly, Sally B., "One Airline's Magic: How Does Southwest Soar Above Its Money-Losing Rivals? Its Employees Work Harder and Smarter, in Return for Job Security and a Share of the Profits," Time, October 28, 2002, pp. 45+.

Flint, Perry, "Southwest Keeps It Simple," Air Transport World, April 2005, pp. 26+.

Freiberg, Kevin, and Jackie Freiberg, Nuts! Southwest Airlines' Crazy Recipe for Business and Personal Success, Austin: Bard, 1996.

Gibney, Frank, Jr., "Southwest's Friendly Skies," Newsweek, May 30, 1988.

Gibson, Jane Whitney, and Charles W. Blackwell, "Flying High with Herb Kelleher: A Profile in Charismatic Leadership," Journal of Leadership Studies, Summer/Fall 1999, p. 120.

Gruner, Stephanie, "Have Fun, Make Money: How Herb Kelleher Parties Profitably at Southwest Airlines," Inc., May 1998, p. 123.

Jonas, David, and David Meyer, "SW Shines in Light of Biz Changes," Business Travel News, December 9, 2002, pp. 1+.

Keating, Peter, "Rating the Airlines: The Best Airlines to Fly Today," Money, November 1, 1997.

Kelly, Kevin, "Southwest Airlines: Flying High with 'Uncle Herb'," Business Week, July 3, 1989.

Labich, Kenneth, and Ani Hadjian, "Is Herb Kelleher America's Best CEO?," Fortune, May 2, 1994.

Levering, Robert, and Milton Moskowitz, The 100 Best Companies to Work for in America, New York: Doubleday, 1993.

------, "The 100 Best Companies to Work for in America," Fortune, January 12, 1998.

Loeffelholz, Suzanne, "The Love Line," Financial World, March 21, 1989.

McKenna, Ed, "Southwest's Cargo Turn: The 'Southwest Effect' Is Being Felt in Bellies, with Revenue Surging, Forwarders Praising," Traffic World, February 14, 2005, p. 30.

Maglitta, Joseph, "Lean, Mean Flying Machines," Computerworld, July 11, 1994.

Putnam, Howard D., The Winds of Turbulence, New York: Harper Business, 1991.

"Southwest: After Kelleher, More Blue Skies," Business Week, April 2, 2001, p. 45.

Southwest Airlines Co., Southwest Airlines History, Dallas: Southwest Airlines Co., 1991.

"SW CEO: Crisis Opens Door," Business Travel News, November 8, 2004, pp. 1+.

Taylor, John H., "Risk Taker," Forbes, November 14, 1988.

Troxell, Thomas N., Jr., "Deregulation in Stride," Barton's, January 23, 1984.

Walker, Karen, "The King of Low-Cost," Airline Business, June 1999, p. 38.

Weber, Joseph, "These Two Airlines Are Doing It Their Way," Business Week, September 21, 1987.

"Why Herb Kelleher Gets So Much Respect from Labor," Business Week, September 24, 1984.

Zellner, Wendy, "Dressed to Kill ... Competitors," Business Week, February 21, 2005, p. 60.

------, "Striking Gold in the California Skies," Business Week, March 30, 1992.

Zellner, Wendy, and Michael Arndt, "Holding Steady; As Rivals Sputter, Can Southwest Stay on Top?," Business Week, February 3, 2003, p. 66.

— Elizabeth Rourke; Updated by Frederick C. Ingram


Wikipedia: Southwest Airlines
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Home > Library > Miscellaneous > Wikipedia
For the defunct California airlines, see Pacific Southwest Airlines and Southwest Airways.

Coordinates: 32°50′48″N 96°51′40″W / 32.846666666667°N 96.861°W / 32.846666666667; -96.861

This article is about the American airline. For the Japanese airline formerly named Southwest Airlines, see Japan Transocean Air. For the British airline, see Air Southwest. For the former Chinese airline, see China Southwest Airlines.
Southwest Airlines
Southwest Airlines Logo.svg
IATA
WN		 ICAO
SWA		 Callsign
SOUTHWEST
Founded 1971 (as Air Southwest)
Focus cities
Frequent flyer program Rapid Rewards
Fleet size 547
Destinations 68
Company slogan "A Symbol of Freedom" - "Grab Your Bag. It's On"-"You are Now Free to Move About the Country"
Parent company Publicly owned (NYSE: LUV)
Headquarters Dallas, Texas, United States
Key people Gary C. Kelly (Chairman, CEO and President)
Herb Kelleher (Co-Founder)
Laura Wright (CFO)
Colleen Barrett (Ex-President)
Website Southwest.com

Southwest Airlines Co. (NYSE: LUV) is an American low-cost airline. Southwest is the largest airline in the world by number of passengers carried per year (as of 2007).[1] Southwest, the 6th largest U.S. airline by revenue,[2] maintains the third-largest passenger fleet of aircraft among all of the world's commercial airlines. As of May 3, 2009, Southwest operates approximately 3,500 flights daily. Southwest is headquartered at 2702 Love Field Drive in the Love Field area of Dallas, Texas, adjacent to Love Field airport.[3]

Southwest Airlines has carried more customers than any other U.S. airline since August 2006 for combined domestic and international passengers according to the U.S. Department of Transportation's Bureau of Transportation Statistics.[4] Southwest Airlines is one of the world’s most profitable airlines, posting a profit for the 36th consecutive year in January 2009.[5]

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

Contents

The Southwest Effect

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Main article: The Southwest Effect

The success and profitability of Southwest's business model led to a common trend being named after the company, the Southwest Effect. Since Southwest's original mission in Texas was to make it less expensive than driving between two points (in the early 1970s, during the first major energy cost crisis in the U.S.), it developed a template for entering markets at rates that allowed the airline to be profitable, yet only on the basis of lean operations and high aircraft use. The key concept to the Southwest Effect is that when a low-fare carrier (or any aggressive and innovative company) enters a market, the market itself changes, and usually grows dramatically. For example, when fares drop by 50% from their historical averages, the number of new customers in that market may not just double, but actually quadruple, or more.

Southwest has been a major inspiration to other low-cost airlines, and its business model has been repeated many times around the world. Europe's EasyJet and Ryanair are two of the best known airlines to follow Southwest's business strategy in that continent (though EasyJet operates two different aircraft models today). Other airlines with a business model based on Southwest's system include Canada's WestJet, Malaysia's AirAsia (the first and biggest LCC in Asia), Qantas's Jetstar (although Jetstar now operates three aircraft types), Thailand's Nok Air and Mexico's Volaris.

History

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Southwest Airlines headquarters in Dallas
A Southwest Airlines Boeing 737-300 at Portland International Airport

Southwest Airlines was originally incorporated to serve three cities in Texas as Air Southwest on March 15, 1967, by Rollin King and Herb Kelleher. According to frequently-cited story, King described the concept to Kelleher over dinner by drawing on a paper napkin a triangle symbolizing the routes (Dallas, Houston, San Antonio).[6]

Some of the incumbent airlines of the time (Braniff, Aloha Airlines, United Airlines, Trans-Texas, and Continental Airlines) initiated legal action, and thus began a three-year legal battle to keep Air Southwest on the ground. Air Southwest eventually prevailed in the Texas Supreme Court, which ultimately upheld Air Southwest’s right to fly in Texas.[7] The decision became final on December 7, 1970, when the U.S. Supreme Court declined to review the case without comment.[8]

The story of Southwest’s legal fight was turned into a children’s book, Gumwrappers and Goggles by Winifred Barnum in 1983. In the story, TJ Love, a small jet, is taken to court by two larger jets to keep him from their hangar, and then to try and stop him from flying at all. Taken to court, TJ Love’s right to fly is upheld after an impassioned plea from The Lawyer. While no company names are mentioned in the book, TJ Love’s colors are those of Southwest Airlines, and the two other jets are colored in Braniff and Continental’s colors. The Lawyer is designed to resemble Herb Kelleher. The book was adapted into a stage musical, Show Your Spirit, sponsored by Southwest Airlines, and played only in towns serviced by the airline.[9]

Southwest Airlines founder Herb Kelleher studied California-based Pacific Southwest Airlines extensively and used many of the airline’s ideas to form the corporate culture at Southwest, and even on early flights used the same "Long Legs And Short Nights" theme for stewardesses on board typical Southwest Airlines flights. The original flight attendants that worked for Southwest Airlines were chosen by a committee of individuals that included the same person who had selected hostess for Hugh Hefner’s Playboy jet. The selection resulted in a group of female flight attendants that were described as long-legged dancers, majorettes, and cheerleaders with "unique personalities". Southwest Airlines and Herb Kelleher proceeded to dress these individuals in hot pants and go-go boots.[10]

The airline adopted the first profit-sharing plan in the U.S. airline industry in 1971. Through this plan and others, employees own about 10 percent of the company stock.[citation needed]

The airline is about 87 percent unionized. The pilots are represented by the Southwest Airlines Pilots’ Association, a union separate from the much larger Air Line Pilots Association.[citation needed]

First flights

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In early 1971, Air Southwest changed its name to Southwest Airlines, and the first flight was on June 18, 1971. Its first flights were from Love Field in Dallas to Houston and San Antonio,[11] short hops with no-frills service and a simple fare structure, features that became the basis for Southwest’s popularity and rapid growth in the coming years.[citation needed]

The start of service in June 1971 was accomplished with three 737-200 aircraft; a fourth was added in September of the same year.[citation needed]

Over time, Southwest has added improved 737 variants but has stayed within the Boeing 737 family to hold down operating costs. Because this technique simplified training, maintenance, and ground operations, it revolutionized the industry’s approach to building aircraft fleets.[citation needed]

In January 2005, Southwest retired its last 737-200, the oldest type in its fleet. To celebrate "putting the -200s to bed", selected employees donned Southwest pajamas for an early morning flight to celebrate the final landing at Dallas Love.[citation needed]

Early losses and financial troubles

The rest of 1971 and 1972 saw operating losses. One of the four aircraft was sold to Frontier Airlines and the proceeds used to make payroll and cover other expenses. Southwest continued to operate a schedule predicated on four aircraft but using only three, and in so doing the "ten minute turn" was born, and was the standard ground time for many years.[12]

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

In 1975 Southwest was headquartered at the 1820 Regal Row building in Dallas, by Love Field.[13]

By 1979, Southwest flew to all of the cities they currently serve in Texas, including El Paso, Amarillo, Beaumont, Corpus Christi, Harlingen, Lubbock, and Midland/Odessa. Interstate service began to New Orleans in 1979, and Albuquerque in 1980. Oklahoma City and Tulsa were added shortly thereafter. In 1981 Southwest co-launched the 737-300 with USAir. In 1982, the first expansion beyond the Texas area took Southwest to the West Coast, adding Phoenix, Las Vegas and San Diego. In late 1984, the 737-300 was placed into service. Chicago Midway and St. Louis service began in March 1985, spreading to Midwest markets.[14]

Southwest hired its first African-American pilot, Louis Freeman, in 1980. In 1992, he was named the first African-American chief pilot of any major U.S. airline.[15]

Wright Amendment

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

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

When airline deregulation came in 1978, Southwest began planning to offer interstate service from Love Field. This caused a number of interest groups affiliated with Dallas-Ft. Worth Airport, including the city of Fort Worth, to push the Wright Amendment through Congress to restrict such flights.[16] Under the restrictions of the amendment, Southwest, and all other airlines, were barred from operating, or even ticketing passengers on flights from Love Field to destinations beyond the states immediately surrounding Texas. In effect, to travel through Love Field, a passenger and luggage would have to deplane and fly on a separate ticket, on a separate aircraft.

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

Southwest’s efforts to repeal or even alter the Wright Amendment were met with opposition from American Airlines and Dallas Ft. Worth International Airport. Both American Airlines and DFW contended that repeal of the Wright Amendment restrictions would cripple DFW,[17] while Southwest contended that repeal of the Wright Amendment would be beneficial to both Love Field and DFW.[citation needed] Continental Airlines has a successful hub and spoke operation at Houston Bush Intercontinental Airport despite unrestricted competition from Southwest at Houston Hobby Airport.

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

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

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

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

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

Acquisitions

Morris Air

One airline influenced by Southwest was Morris Air, founded by June Morris and David Neeleman, based in Utah and operating in the northwestern U.S. Southwest Airlines purchased Morris Air and absorbed the capital and routes into its inventory and service. David Neeleman worked with Southwest for a short period. When his non-compete agreement expired, Neeleman founded JetBlue Airways, a competing airline that also incorporates many principles and practices pioneered by Southwest, including building a positive, warm employee culture and operating a simple fleet.[18]

Muse Air

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

ATA Airlines

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

Failed Acquisitions

Frontier Airlines

On July 30, 2009, Southwest Airlines publicly announced a $113.6 million bid for Frontier Airlines Holdings, the parent company of Frontier Airlines. Southwest's plan was to initially operate Frontier as a stand-alone carrier, but eventually absorb the airline. Frontier's aircraft would also be replaced with Boeing 737s that Southwest had long operated as its aircraft type.[19]

On August 14, news reports announced that Southwest had lost its bid to Republic Airways Holdings. Industry experts had expected Southwest to win, which would have grown its presence in Denver and allowed it to explore international routes. However, Southwest said a key reason its bid wasn't chosen was because it chose not to remove a requirement calling for pilot unions at its company and Frontier to reach an agreement.[20]

Fuel cost containment measures

Southwest Airlines earned a reputation for being very aggressive and proactive about containing fuel costs as a key to maintaining profit margins.[21]

Hedging fuel

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Southwest has a longtime program to hedge fuel prices. It has purchased fuel options years in advance to smooth out fluctuations in fuel costs.[citation needed]

In 2000, Southwest said it had "adjusted its hedging strategy" to "utilize financial derivative instruments... when it appears the Company can take advantage of market conditions." Additionally, the company hoped to "take advantage of historically low jet fuel prices."[22] Southwest’s decision proved to be a prescient and, for a time, an extremely profitable effort.[citation needed]

To lock in the low historical prices Southwest believed were occurring at that time, Southwest used a mixture of swaps and call options to secure fuel in future years while paying prices they believed were low. The company also stated that with this new strategy, it faced substantial risks if the oil prices continued to go down. They did not. Previously, Southwest had been more interested in reducing volatility of oil prices. Now, they hoped to reap large gains from oil price appreciation.[citation needed]

In 2001, Southwest again substantially increased its hedging in response to projections of increased crude oil prices. The use of these hedges helped Southwest maintain its profitability during the oil shocks related to the Iraq War and later Hurricane Katrina.[citation needed]

According to an annual report, here is the company’s fuel hedge for forward years ("approximate" per barrel basis, as of mid-January): 2007 is 95% hedged at $50/barrel; 2008 is 65% hedged at $49/barrel; 2009 is over 50% hedged at $51/barrel; 2010 is over 25% hedged at $63/barrel; 2011 is over 15% hedged at $64/barrel; 2012 is 15% hedged at $63/barrel.[citation needed]

According to its 2006 Annual Report,[23] Southwest paid low prices for fuel because of the benefit of fuel hedges:

  • 2004 - 82.8 cents/gallon
  • 2005 - 103.3 cents/gallon
  • 2006 - 153.0 cents/gallon

These are well below market rates, which Southwest factors into its low operating costs. However, this below-market oil cost will not continue forever; executives have said that Southwest faces increased exposure to the raw oil market every year. This is not a good sign for the airline, which is also facing tough competition from US legacy carriers that have lowered costs through bankruptcy. Southwest CEO Gary Kelly has decided to slow the airline’s growth as a response to this cost.[citation needed]

Some analysts have argued against the style of profit-motivated energy trading Southwest did between 1999 and the early 2000s. They suggested that rather than hedging business risk (such as a hedge on weather to a farmer), Southwest was simply speculating on energy prices, without a formal rationale for doing so.[24]

At present, Southwest has enjoyed much positive press (and a strong financial boost) from its energy trading skills.[25][26][27] However, while most analysts agree that volatility hedges can be beneficial,[24] speculative hedges are not widely supported as a continuing strategy for profits.[28]

In the third quarter of 2008, Southwest recorded its first loss in 17 years due to its fuel-hedging contracts being of lesser-value because of the drop in oil prices.[29][dead link]

Blended winglets

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Southwest’s tribute to Arizona undergoes maintenance at Portland International Airport

All of Southwest’s 737-700s have blended winglets. Additionally, Southwest began installing blended winglets on up to 90 of its 737-300 aircraft beginning in mid-January 2007, with AAR of Indianapolis, Indiana, accomplishing the work. The first modified aircraft, N368SW, resumed service on February 22, 2007.

Jet engine pressure-washing

In 2008, Southwest contracted with Pratt and Whitney to supply the proprietary Ecopower water pressure-washing system, which allows Southwest to clean grime and contaminants off engine turbine blades while the aircraft is parked at the gate. Frequent use of the Ecopower system is estimated to improve fuel efficiency by about 1.9%.[30][31]

Internet presence

On March 16, 1995, Southwest became one of the first airlines to have a web site. Originally called the "Southwest Airlines Home Gate", customers could view schedules, a route map, and company information at http://www.iflyswa.com.[32][dead link] The company later obtained the rights to its current home on the web, http://www.southwest.com, from an unaffiliated business. Southwest consistently rejects syndicating its fares to fare search sites such as expedia.com or orbitz.com.[33]

Southwest.com is the number one airline web site for online revenue, according to PhoCusWright. Nielsen/Netratings also reports that Southwest.com is the largest airline site in terms of unique visitors.[34] In 2006, 70 percent of flight bookings and 73 percent of revenue was generated from bookings on southwest.com. As of June 2007, 69 percent of Southwest passengers checked in for their flights online or at a kiosk.[34]

Violations of safety requirements

On March 6, 2008, Federal Aviation Administration (FAA) inspectors submitted documents to the United States Congress, alleging that Southwest allowed 117 of its aircraft to fly carrying passengers despite the fact that the planes were "not airworthy" according to air safety investigators.[35] In some cases the planes were allowed to fly for up to 30 months after the inspection deadlines had passed, rendering them unfit to fly. Records indicate that thousands of passengers were flown on aircraft deemed unsafe by federal standards. Southwest declined comment at the time, and US Representative James Oberstar advised a hearing would be held.[35][36][dead link]

On March 12, 2008, Southwest Airlines voluntarily grounded 44 planes to check if they needed further inspection. The FAA claimed that Southwest Airlines flew almost 60,000 flights without fuselage inspection. Southwest Airlines faced a $10.2 million fine if they violated FAA regulations. There have also been rumors that the FAA knew about Southwest Airlines violations but decided not to fine the airline because it would disrupt the service of Southwest.[37]

On March 2, 2009, Southwest settled these claims, agreeing to pay the FAA fines of $7.5 million for these safety and maintenance issues. The original fine of $10.2 million - a sum which would have been the largest fine in the agency’s history - was lowered after a year of negotiations. The FAA gave Southwest two years in which to pay the fine.[38]

On August 26, 2009 the FAA investigated Southwest for installing improper parts on about 10% of its jets. The work was performed by an outside maintenance company. The FAA stated that the parts do not present a safety danger, but the airline was given until December 24, 2009 to replace the parts with those approved by the FAA.[39] The FAA is still determining whether it will fine Southwest or its vendor.[40]

Lobbying

Southwest has fought against the development of a high-speed rail system in Texas.[41][42]

Leadership

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Southwest Airlines is headed by Gary C. Kelly. Kelly has served as the airline's CEO since 2004, replacing James F. Parker, who had been the CEO for the last 3 years. Gary C. Kelly was named chairman on May 21, 2008, replacing previous Southwest Airlines CEO and co-founder Herb Kelleher. Kelly also became president of Southwest Airlines earlier this year, replacing Colleen Barrett when her contract expired on July 15, 2008.

Rapid Turnaround

Southwest Airlines is known for its quick turnaround services. In the beginning, Southwest Airlines managed to turnaround planes in ten minutes or less.[43] To this day, Southwest Airlines manages one of the best turnaround times in the industry. The average turnaround today for Southwest Airlines is around 20–30 minutes[citation needed], while more efficient crews can take the time down to only 15 minutes[citation needed].

Wi-Fi

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

Destinations

Current service

Main article: Southwest Airlines destinations

As of November 1, 2009, Southwest Airlines operates scheduled service to 68 destinations in 35 states. Southwest also announced that they will begin to serve the new Northwest Florida-Panama City International Airport in Panama City, Florida when it opens in May 2010, bringing the total of cities served by Southwest to 69.[45]

Ramp operations at William P. Hobby Airport, with a Boeing 737-500 parked at a gate

Southwest does not use the more traditional "hub and spoke" flight routing system of most other major airlines, preferring instead the "Point to Point" system[citation needed]. Currently, Southwest serves 68 cities in 35 states, with more than 3,300 flights a day. It has notably large operations in certain airports. Las Vegas McCarran International Airport has non-stop service to all but ten of Southwest's destinations.[46] Other airports with large Southwest operations include Baltimore-Washington International Airport, Nashville International Airport, Chicago Midway International Airport, Dallas Love Field, Denver International Airport, Houston's William P. Hobby Airport, Los Angeles International Airport, Oakland International Airport, Orlando International Airport, Phoenix Sky Harbor International Airport and Salt Lake City International Airport. An average of 80 percent of Southwest passengers are local passengers, meaning only 20 percent of all passengers are connecting passengers. This is significantly higher than most airlines, where passengers often connect in hub cities.[47][dead link]

As part of its effort to control costs, Southwest tries to use secondary airports which generally have lower costs and may be more convenient to travelers than the major airports to the same destinations. For example, Southwest flies to Midway Airport in Chicago instead of O'Hare International Airport, Fort Lauderdale-Hollywood International Airport and West Palm Beach in South Florida instead of Miami International Airport, Love Field in Dallas, Texas instead of Dallas/Fort Worth International Airport (DFW), and Houston Hobby Airport in Houston instead of Bush Intercontinental Airport.

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

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

In 2005, Southwest withdrew from Houston Intercontinental in favor of using Houston Hobby Airport, a nearby airport with fewer commercial operations. In addition to Bush Intercontinental Airport, the airline has withdrawn service completely from Beaumont, Texas and Detroit City Airport (instead, Southwest operates in nearby Detroit Metropolitan Wayne County Airport).

The airline also once served Stapleton International Airport in Denver but withdrew in 1986 because of excessive ATC delays during poor weather exacerbated by minimal separation between the runways. Southwest returned to Denver in 2006 with service to the new Denver International Airport. Southwest is expanding Denver service faster than any previous Southwest destination[48] at the cost of service to Orlando, Kansas City and Baltimore.[49]

On March 8, 2009, Southwest Airlines began operations at Minneapolis/St. Paul (MSP) with 8 daily flights from the Hubert H. Humphrey Terminal to Chicago Midway International Airport, and added 3 daily flights on the MSP-DEN route on May 26, 2009.

On June 28, 2009, Southwest Airlines started operating five daily round-trip, nonstop flights between New York City LaGuardia Airport and Chicago’s Midway Airport and three daily round-trip, nonstop flights between LaGuardia and Baltimore-Washington International Airport.

On August 16, 2009, Southwest began service from Boston Logan International Airport to Chicago Midway Airport and Baltimore-Washington International Airport.

On November 1, 2009, Southwest Airlines began service from General Mitchell International Airport in Milwaukee, with nonstop flights to six destinations.

Southwest is the largest intrastate airline in California, with 694 flights total in the state, 370 of which are intra-California.

Markets lacking Southwest service

Due to congestion at certain airports and intense competition from entrenched airlines, some markets are not cost effective for Southwest. According to the airline's Route Map, 15 states are without Southwest service.

While other low cost carriers such as AirTran, Frontier, and JetBlue serve international destinations directly, Southwest serves destinations outside the United States only indirectly through codeshare partners. Southwest has recently begun partnerships with Canadian air carrier WestJet and Mexican air carrier Volaris[50].

In 2005, Southwest proposed servicing Seattle using Boeing Field, which is smaller but a little closer to downtown than Seattle-Tacoma International Airport. However, King County officials refused to allow a terminal to be built or service to begin.[51] But in February 2007, a land swap was arranged between King County and the Port of Seattle which gave the Port authority of the airport.

In July 2007, CEO Gary Kelly stated that because of shrinking profits, the airline will likely slow its rate of expansion.[52]

Top served cities

As of July 16, 2009[53]

A Southwest plane lands in Las Vegas, Nevada
City Cities served nonstop Daily departures Number of gates Service began
Las Vegas 56 233 21 1982
Chicago 48 217 29 1985
Phoenix 42 183 24 1982
Baltimore-Washington 38 161 26 1993
Houston-Hobby 29 135 17 1971
Dallas-Love 15 132 15 1971
Denver 32 121 10 2006
Oakland 19 120 13 1989
Los Angeles 18 119 11 1996
Orlando 33 107 12 1994

Southwest Airlines Interactive Route Map>>

During November 2008, Southwest applied to purchase 14 slots (for 7 roundtrips daily) previously used by ATA Airlines at LaGuardia Airport.[54] The bid was approved about a month later, and further progress was made during late March, 2009. In early April, it was announced that the airline will (strategically) have a combined total of 16 daily arrivals and departures (5 and 3 each way with MDW and BWI respectively), despite the receipt of only 14 slots.[55] On June 28, 2009 Southwest successfully started servicing LaGuardia Airport and the airline is confident about future growth at LGA, including expanded service to other locations.[56];[1]

On February 19, Southwest announced service to Boston's Logan airport, in the Fall of 2009 [57]. Service began August 16, 2009, with five daily roundtrips to both BWI and MDW [58]. Southwest says that it is complementing their service to Manchester, NH and Providence, RI. As reported by the Boston Herald earlier this year, there is a two-gate operation with an additional 2 gates as options at Logan [59]. Southwest is hoping to curve toward business travelers that stay in downtown Boston and bring lower ticket cost and fees to these travelers [60].

The airline's most recent expansion announcement happened October 21: Northwest Florida International Airport near Panama City, Florida, with service starting on May 2010.[61]

International service

Prior to ATA's shutdown, Southwest Airlines had set a goal to codeshare with ATA and begin international codeshare services or ticket for international flights in 2009. Destinations served by ATA could have included Canada, the Caribbean, Mexico, and Europe. On July 8, 2008, Southwest announced that it has agreed to a comprehensive codeshare agreement with Canada's second largest carrier WestJet, though implementation has been delayed.[62][63][64]

Southwest also has announced plans to codeshare with Mexico's Volaris with flights starting in 2010. Plans have yet to be unveiled about which airline will be crossing the border.

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

Alliances & codeshare agreements

Current codeshare agreements

WestJet Airlines

On July 8, 2008, Southwest Airlines officially announced the intent to begin a codeshare agreement with WestJet Airlines of Canada, giving the two airlines the ability to sell seats on each other's flights.[65] Originally, the partnership was to be finalized by late 2009, but has been postponed due to economic conditions.[66]

Volaris

Southwest announced its second international codeshare agreement on November 10, 2008, with Mexican low cost carrier Volaris. The agreement will allow Southwest to sell tickets on Volaris flights beginning in 2010, including international flights from the United States that the carrier started in early summer, 2009.[67] Volaris began service at Oakland (OAK) and Los Angeles (LAX) both to and from the airline's hub in Toluca/Mexico City and focus city Guadalajara. Service between Oakland and Tijuana was added September 21, with the latter acting as a "funnel" connection to and from several other Mexican locations.[68]

Past codeshare agreements

Icelandair

In 1997, Southwest and Icelandair entered into interline and marketing agreements allowing for joint fares, coordinated schedules, and transfer of passenger luggage between the two airlines at Baltimore. Icelandair operated flights between Baltimore and Keflavik Airport in Iceland. Connecting service between several U.S. cities and several European cities appeared in the Southwest timetable[69] The frequent flyer programs were not included in the agreement. This arrangement lasted for several years but is no longer in existence.

ATA Airlines

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

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

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

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

The ATA/Southwest codeshare was terminated when ATA filed for Chapter 11 bankruptcy on April 3, 2008. As of 4:00 A.M. EDT on April 3, ATA discontinued all operations.[70][dead link] Towards the end of November 2008, Southwest announced it was buying the operating certificate and the remaining assets of ATA Airlines thus enabling Southwest Airlines access to New York LaGuardia slots formerly controlled by ATA. According to Southwest Airlines "...it doesn't include any aircraft, facilities or employees of ATA."[71]

Southwest Airlines Vacations

In 1989, Southwest Airlines and The Mark Travel Corporation entered into an exclusive agreement which gave customers an option to purchase complete vacation packages called Southwest Airlines Vacations. These vacation packages continue to include roundtrip air fare via Southwest Airlines, hotel accommodations, hotel taxes, ground transportation options, Rapid Rewards credit on the air portion and 24-hour traveler assistance. Area attraction passes, travel protection plans and ski lift tickets are also available.

Corporate culture

Southwest experience

Tickets cannot be purchased through common online venues like Orbitz or Travelocity; a minority are booked through travel agents. Most of Southwest's tickets are issued directly by the airline over the phone or online at the company's website, which features Web-only fare discounts.

Unlike other major airlines, Southwest allows passengers to change reservations without additional cost. While this provides flexibility to customers, Southwest does not allow same-day standby travel on a different flight (usually a free service at other airlines) without upgrading.

Boarding area at a gate at Orlando International Airport

Customers are not assigned seats; rather, they are assigned to one of three "boarding groups" depending on their check-in time (earlier check-ins get to board earlier), and are left to choose their own seats on the plane, which helps the airline to board passengers faster[citation needed]. At the May 2006 shareholders meeting, Southwest management announced a study of potentially adopting an assigned-seating system in 2008, as part of a reservations-technology overhaul now under way. As of November 8, 2007 Southwest has implemented an update to their Boarding Procedure in which passengers are now assigned their Boarding letter (A, B or C) along with a number which provides them a specific place in line (Example: A32). The idea behind this is to allow customers to not have to wait in line and spend their time relaxing or catching up on work. They have also introduced Business Select fares, which adds a guaranteed "A" group boarding pass, extra Rapid Rewards credit, and a drink. As a result of the boarding policy, several independent companies offered automatic check-in services for Southwest. These companies took customers' orders for check-in ahead of the 24 hour mark (when the airline makes a flight available for online check-in) and transmitted the necessary data for check-in to Southwest as soon as the airline opens up online check-in for a particular flight. The result of this service was that people using it generally get the first boarding group (known as the "A" boarding group). Southwest has not embraced this practice and in fact sued one company (boardfirst.com) in federal district court in Dallas for impermissible commercial use of its website and succeeded in getting the company shut down in October 2007. As a result of litigation or threats thereof, the last early check-in services indefinitely ceased operations on September 15, 2008.

In September 2009, Southwest adopted a new policy whereby passengers not travelling Business Select (and excluding unaccompanied minors, who board first anyway) may pay an extra $10 and participate in "EarlyBird Check-in". Participants receive their assigned group and number automatically 36 hours in advance, following Business Select and A-list (those who travel 32 paid one-way trips in a 12-month period), with full fare passengers having priority. The airline did not disclose in what order numbers will be assigned among non-full fare participants.

Concourses A and B were, in 2005, constructed and renovated (respectively) at BWI giving Southwest 26 gates there[72]

Southwest historically allowed three pieces of luggage to be checked in free as opposed to the limit of two on the domestic flights of some other U.S. airlines. However, on January 29, 2008, only two bags could be checked in for free, with a third bag subject to a $25 fee. A 4th through 9th checked bag has a charge of $50, and any other pieces after that are $110.

Prior to the 2000s, Southwest served smaller meals than the meals served by full service airlines, with shorter flights receiving single small snacks and soft drinks, and longer flights (with a duration of about 3 hours or more) meriting "Snack Pack"s of prepackaged goods. In the 2000s these meals in a bag typically exceed the food served on full-service airlines like United Airlines or American Airlines.[citation needed] Southwest also offers free in-flight beverages (excluding alcohol). There is no in-flight entertainment. Southwest is known for colorful boarding announcements and crews that burst out in song. The singing is unusual, and is quite popular among customers, but has been noted by some travel critics as being offensive and intrusive.[73]

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

Rapid Rewards

Southwest's frequent flier program is called Rapid Rewards. Customers receive one credit for each one-way trip (even though the flight may have stopovers). A free ticket, expiring after 11 months, is automatically issued when a member accumulates 16 credits in a 24-month period. In addition, one half credit is earned for using a Southwest partner to book any car rental and/or hotel stay, regardless of whether a Southwest flight is involved. Rapid Reward members can also earn one credit for every $1,200 charged to a Rapid Rewards branded Visa credit card (with charges from Southwest or its partners counting double). If members register their credit card with Rapid Rewards Dining, they will receive 0.25 credits for every US$100 spent on restaurant partners. In early 2009, Southwest announced their first retail partner, TeleFlora Flower Club, from which members can earn 0.5 or 1.0 credits with each flower order (depending on the total cost of the order). The Rapid Rewards program has won numerous Freddie Awards over the years.

In the past, Double Rapid Rewards credits were awarded for trips booked online, but this policy was modified at the end of 2003, at which time the bonus was reduced to one half credit for each segment booked online (so a round trip booked online would be eligible for three Rapid Rewards credits). The bonus for online booking was discontinued completely in April 2005.

Prior to February 2006, reward travel was subject to blackout dates but not capacity controls: one could use a reward to travel on any flight for which seats were available, provided it was not on one of the five blackout dates. In February 2006, these policies were reversed: the blackout dates were eliminated, but capacity controls were instituted, limiting the quantity of seats available to those traveling on reward credits.

In early 2006, Southwest expanded its codeshare agreement with ATA Airlines and allowed redemption of award tickets on Hawaii flights at the rate of two awards per round trip flight. On April 3, 2008, ATA airlines ceased all flights due to bankruptcy, including the codeshare service to Hawaii.

Advertisements

The company has employed humor in its advertising. Slogans include "Just Plane Smart", "The Somebody Else Up There Who Loves You" and "THE Low Fare Airline". The airline's current slogan is "It's On.". A select history of print and video ads are available on the company website.[74]

Since the 1990s, Southwest has been running a television ad campaign based on the phrase "Wanna get away?" The commercials present comical, embarrassing situations in which people find themselves wanting to "get away". Most ads are accompanied by the sound clip "[ding] You are now free to move about the country"; self-parody of the in-flight announcement that "you are now free to move about the cabin".

The Southwest Airlines television commercial "Flight Attendant" was named in 'Adweek's ‘Best Spots’ in August 2006.

A Southwest plane at Chicago Midway International Airport

"Just Plane Smart"

Shortly after Southwest started using the "Just Plane Smart" motto, Stevens Aviation, who had been using "Plane Smart" for their motto, threatened a trademark lawsuit.[75]

Instead of a lawsuit, the CEOs for both companies staged an arm wrestling match. Held at the now demolished Dallas Sportatorium (the famed wrestling facility) and set for two out of three rounds, the loser of each round was to pay $5,000 to the charity of their choice, with the winner gaining the use of the trademarked phrase. A promotional video was created showing the CEOs "training" for the bout (with CEO Herb Kelleher being helped up during a sit up where a cigarette and glass of whiskey (Wild Turkey 101) was waiting) and distributed among the employees and as a video press release along with the video of the match itself. Herb Kelleher lost the match for Southwest, with Stevens Aviation winning the rights to the phrase. Kurt Herwald, CEO of Stevens Aviation, immediately granted the use of "Just Plane Smart" to Southwest Airlines. The net result was both companies having use of the trademark, $15,000 going to charity and a healthy dose of goodwill publicity for both companies.[76]

Employment

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

Concerns attributed to labor unrest and complaints by the Transport Workers Union of America (TWU) representing Southwest flight attendants were reportedly a factor in the resignation of Kelleher's hand-picked replacement as CEO. Jim Parker resigned in July 2004 and was replaced by Chief Financial Officer Gary Kelly.[77]

Organized labor

Although Southwest is considered a "low fare" airline, it is heavily unionized when compared to other airlines.[78] The Southwest Airline Pilots' Association, a union not affiliated with the Air Line Pilots Association, International, represents the airline's pilots.[79] The Aircraft Maintenance Technicians' are represented by the Aircraft Mechanics Fraternal Association (AMFA).[80] Customer Service Agents and Reservation Agents are represented by the International Association of Machinists and Aerospace Workers Union (IAM). Flight Dispatchers, Flight Attendants, Ramp agents and Operations agents are represented by the Transport Workers Union (TWU).

Airline

The American version of the reality show Airline showcased Southwest Airlines passengers and employees in daily mishaps and life at some of Southwest's major airports (BWI, MDW, LAX, & HOU). The show premiered January 5, 2004 on the A&E Network, but was canceled after 70 episodes on December 15, 2005.

Fleet

Current fleet

The interior of a Southwest Boeing 737-700 with the airline's leather seating

The Southwest Airlines fleet consists of the following 547 aircraft; as of October 5, 2009, all aircraft currently are variants of the Boeing 737:

Southwest Airlines Fleet
Aircraft Total Orders Options Purchase Rights Passengers
(Economy)		 Launch Customer Largest Operator Fitted With Blended Winglets Routes
Boeing 737-300 181 0 0 0 137 Yes Yes 70; 20 more to be retrofitted Short/Medium Haul
Boeing 737-500 25 0 0 0 122 Yes No No Short/Medium Haul
Boeing 737-700 341 98 62 54 137 Yes Yes Yes All Routes

The airline operates more Boeing 737s in its fleet than any other airline in the world; Southwest is often cited as an example of an airline streamlining operations by having only one type of aircraft. However, Southwest operated leased 727-200 aircraft during the late-1970s and again in the mid-1980s and subsidiary TranStar Airlines operated DC-9s and MD-80s during the mid-1980s. Southwest has been a launch customer for all three of the Boeing 737 variants it currently operates, and was the first airline to put both the Model 500 and next-generation Model 700 into service. Southwest has a mix of old and new aircraft with both its "classic" and "next generation" 737 aircraft.[81]

As of August 2009, Southwest has an average fleet age of 14.0 years,[82] and fly an average of about 7 flights per day. The average aircraft trip length is 633 miles (1,019 km) with an average duration of one hour and 48 minutes. This means the daily utilization of each plane is, on average, 12 hours and 36 minutes.[34]

Southwest's seats are the same as any other operator of 737s in the United States. The seat pitch averages between 32 and 33 inches (840 mm), which is longer than the average U.S. domestic airlines of 31 to 32 inches (810 mm). Low-fare carrier JetBlue Airways also offers from 34 inches (860 mm) to 38 inches (970 mm).[83] However, seats are approximately one inch narrower than Airbus A320 series operated by low cost carriers such as Frontier Airlines, JetBlue, Virgin America, USA 3000, and several other competitors.

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

Since production of the 737-300 and 737-500 has ended, recent Southwest orders have been exclusively for the 737-700 model. Southwest began retiring some older 737-300 models, beginning in December 2007, reducing its -300 fleet from its original count of 194. However, newer -300 models are being retrofitted with new electronic flight decks. These retrofits will make them compatible in operation with the -700, and will support the airline's move to embrace the Required Navigation Performance initiative; among other advances, these improvements will give the -300 a glass cockpit and allow navigation via the Global Positioning System. Southwest expects substantial cost savings from this initiative.[84]

Southwest is the world's largest operator of the 737. Their current active fleet consists of over 500 aircraft. In terms of total 737 production (all models in history), deliveries of new aircraft from Boeing to Southwest accounts for approximately 9% of total production. Southwest has one of the largest fleets in North America.

Retired fleet

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

Livery

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

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

Southwest introduced the Canyon Blue Fleet in 2001, its first primary livery change in its 30-year history. Spirit One was the first plane painted in the color scheme. The new livery replaces the primary beige color with canyon blue and changes the Southwest text and pinstripes to gold. (The orange tail end continues to still be used; there was one model with both liveries combined to celebrate the company's 35th anniversary.) The pinstripe along the plane is drawn in a more curved pattern instead of the straight horizontal line separating the colors in the original. The original livery is gradually being phased out, but three aircraft will remain in the original livery to commemorate Southwest's original three cities. As of November 16, 2007, Southwest had nearly completed updating the fleet.[34]

Southwest's livery designs exploit the aesthetic appeal of blended winglets as well. The first planes to be fitted with the winglets remain in the plain colored winglet (matching the stripes on the fuselage), but later aircraft to be fitted have winglets with "SOUTHWEST.COM" written on them. All aircraft will eventually be repainted to the ".com" winglets. Special livery aircraft with winglets, such as Shamu, have plain white winglets.[34]

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

  • Shamu: The three aircraft are painted to look like an Orca, with advertisements for SeaWorld. (N334SW), (N713SW), (N715SW)
    • The first aircraft to be painted in the "Shamu" scheme was N334SW (1988), a 737-300, and it was later followed by N507SW (Shamu II) and N501SW (Shamu III), both 737-500s. Subsequent to the retirement of Southwest's 737-200s, the 737-500s began to stay within a smaller geographic area formerly operated by the 737-200s, and as such, Sea World was no longer getting the optimal national exposure from these two aircraft. Two 737-700 aircraft, N713SW and N715SW, were repainted as the new Shamu aircraft, and both N501SW and N507SW were eventually repainted in Canyon Blue colors. All three current Shamu aircraft are no longer referred to as Shamu I, II, or III. The artwork on the nose of each aircraft simply states "Shamu". The overhead bins on the -700 series aircraft display ads for Sea World, except towards the front and back of the airplane, where the bins get smaller and are no longer uniform.
  • Formerly wearing the "Shamu" livery, is the very first 737-500 ever built. (N501SW).
  • The Spirit of Kitty Hawk: (1984) Livery and title introduced the first three Boeing 737-300 aircraft to the Southwest Airlines fleet. (N300SW) is the oldest 737-300 in Southwest's fleet, followed by sister ships (N301SW) and (N302SW).
  • Lone Star One: (1990) The flag of the state of Texas applied across the aircraft. (N352SW)
  • Arizona One: (1994) The flag of the state of Arizona applied across the aircraft. (N383SW)
  • The June M. Morris: (1994) In honor of June Morris, Signature and Morris Air logo on the nose. Logo removed for Canyon Blue repaint. (N607SW, Original, Canyon Blue)
  • California One: (1995) The flag of the state of California applied across the aircraft. (N609SW)
  • Silver One: (1996) 25th Anniversary aircraft. Originally polished bare metal, it was later painted silver for easier maintenance. It was then re-painted with a silver metallic paint. This aircraft also featured silver seats, which were replaced to conform with the rest of the fleet for simplicity. Silver One also featured silver heart shaped drink stirrers.(N629SW, Original, Silver Paint, Canyon Blue)
  • Triple Crown One: (1997) Livery dedicated to the employees of Southwest, in recognition of Southwest receiving five Triple Crown airline industry awards (best on-time record, best baggage handling, and fewest customer complaints). The overhead bins in Triple Crown One one are inscribed with the names of all employees that worked for Southwest at the time, in honor of their part in winning the award.(N647SW)
  • Nolan Ryan Express: (1998) Commemorative sticker dedicated to famous Texas pitcher Nolan Ryan who is MLB's all-time strikeout leader with 5,714 strikeouts. (N742SW)
  • Nevada One: (1999) The flag of the state of Nevada applied across the aircraft. (N727SW)
  • New Mexico One: (2000) The flag of the state of New Mexico applied across the aircraft. (N781WN)
  • Spirit One: (2001) 30th Anniversary aircraft. (First Aircraft in New Canyon Blue paint scheme) (N793SA)
  • The Spirit of Hope: (2004) Dedicated to the Ronald McDonald House. Overhead bins are covered in artwork from kids at a Ronald McDonald House in Washington State. (N443WN), (The overhead bins)
  • Maryland One: (2005) The flag of the state of Maryland applied across the aircraft. (N214WN)
  • Slam Dunk One: (2005) Basketball superimposed on side of aircraft and a different NBA team logo on each overhead bin in the cabin, recognizing Southwest's partnership with the National Basketball Association. (N224WN)
  • Illinois One: (2008) The flag of the state of Illinois applied across the aircraft. (N918WN)
  • Southwest received both the 5,000th 737 produced (February 13, 2006) (N230WN) and the 2,000th "Next Generation" 737 produced (July 27, 2006) (N248WN). The 2,000th "Next Generation" 737 is marked as such in its livery, though the 5,000th 737 is not similarly marked on the outside. It does have a placard stating that it is the 5000th 737 on the upper part of the inside entry door frame.
  • Southwest received their 500th 737 on June 28, 2007. This aircraft is marked to honor this milestone. (N281WN)
  • Tinker Bell One: (2008) Includes the logo of the Tinker Bell movie and a sticker featuring the phrase "Powered by Pixie Dust" (N912WN)
  • Sports Illustrated: (2009) A large decal of Sports Illustrated Swimsuit Edition Cover Model Bar Refaeli adorns the fuselage of N922WN (N922WN) [85]
  • Although not in a special livery, Southwest operates the very first 737-700 ever built. (N707SA).

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

Incidents and accidents

Question book-new.svg
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Please help improve this article by adding reliable references. Unsourced material may be challenged and removed. (July 2009)
Chicago Midway Intl.: Flight 1248

Southwest has had five major incidents of note; it has never had an accident resulting in a passenger or crewperson fatality (one accident resulted in a fatality on the ground):

  • On March 5, 2000, Southwest Airlines Flight 1455 overran the runway upon landing at Burbank-Glendale-Pasadena Airport, now called Bob Hope Airport, Burbank, California, injuring 43. The incident resulted in the dismissal of the pilots. The aircraft was damaged beyond repair. This incident is the only hull loss incident in the 38+ year history of the airline.
  • On August 11, 2000, passenger Jonathan Burton broke through the cockpit door aboard Southwest Airlines Flight 1763 while in route from Las Vegas to Salt Lake City. In their own defense, the other passengers restrained Burton who later died of the resulting injuries.[86] A CSI episode, "Unfriendly Skies", using similar incident elements in its plot, aired on December 8, 2000.
Search Wikinews Wikinews has related news: Southwest Airlines flight skids off runway at Chicago's Midway

Awards and recognitions

  • The American Brand Excellence Awards recognize leading national brands that best serve the needs of small- and medium-sized businesses. For 2007, Southwest Airlines came out tops in the Travel segment, based on a City Business Journals Network nationwide survey of 1,000 business decision-makers who evaluated 251 brands.
  • For the tenth year in a row, FORTUNE magazine recognized Southwest Airlines in its annual survey of corporate reputations. Among all industries in 2005, FORTUNE has listed Southwest Airlines as number three among America’s Top Ten most admired corporations.
  • FORTUNE has ranked Southwest Airlines in the top five of the “Best Companies to Work For” in America. Southwest ranked first in 1997 and 1998, second in 1999, and fourth in 2000. Southwest has chosen not to participate since 2000./
  • Southwest Airlines’ Rapid Rewards program was honored in InsideFlyer magazine's 2006 annual Freddie Awards for Best Program of the Year, Best Award Redemption, Best Award, Best Web Site, and Best Bonus Promotion Honors.
  • For 2007, the eighth year in a row, Business Ethics magazine lists Southwest Airlines in its "100 Best Corporate Citizens", a list that ranks public companies based on their corporate service to various stakeholder groups.[89] Southwest is one of only 11 repeat winners that have made the list all eight years.
  • In 2005 and again in 2008 The American Customer Satisfaction Index (ACSI) recognized Southwest Airlines as leading the industry in customer satisfaction. The ACSI, conducted by the University of Michigan, independently tracks customer satisfaction levels by measuring the household consumption experience.[90]
  • Since 2000, HISPANIC magazine has listed Southwest Airlines as Corporate 100 for leadership in providing opportunities for Hispanics and for supporting recruitment, scholarships, and minority vendor programs.
  • The Express Delivery & Logistics Association honored Southwest Airlines as the "2006 Airline of the Year."
  • In 2005, American Small Business Travelers Alliance ranked Southwest Airlines as the "Best Airline Among Small Business Travelers."
  • Southwest president Colleen Barrett was chosen as 2007's Tony Jannus Award winner,[91] becoming the first woman to be honored in the 44-year history of the respected aviation award.
  • Professional Women's magazine included Southwest Airlines in their 2006 ranking of the "Most Admired Companies Among Women."
  • According to Institutional Investor magazine, Southwest Airlines ranked number one in the Consumer category among all airlines as the "Most Shareholder Friendly Company" based on the effectiveness of Southwest's governance and investor relations as part of their overall efforts to maximize share holder value.
  • Southwest Airlines took top honors in the ninth Business Travel News Annual Airlines Survey.
  • In 2006, Southwest ranked in GIjobs.nets list of 50 military friendly employers. At number 37, Southwest was the only major commercial airline to make the list.
  • In its January 2006 issue, Institutional Investor ranked Southwest CEO Gary Kelly as one of America's top CEO's. He was ranked best CEO in the airline sector.
  • In April 2007, The Port of Portland presented Southwest Airlines with the Environmental Excellence Award in recognition of an exemplary effort in the category of Environmental Innovation.[92]

See also

Texasflaginstate.PNG Texas portal
Flag of Dallas.svg Dallas portal

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  85. ^ "Southwest Paints Swimsuit Model on Plane". PopSci.com.au. 2009-02-12. http://www.popsci.com.au/military-aviation-amp-space/article/2009-02/southwest-paints-swimsuit-model-plane. Retrieved 2009-02-12. 
  86. ^ Salt Lake City police. "Police report". http://www.thesmokinggun.com/archive/southwest1.html. Retrieved 2007-06-22. 
  87. ^ "SWA plane catches fire at Hobby." KTRK-TV. Wednesday May 13, 2009. Retrieved on May 19, 2009.
  88. ^ Shawn Nottingham, Stephanie Gallman (2009-07-14). "Jet makes landing with football-sized hole". CNN. http://edition.cnn.com/2009/US/07/13/us.jetliner.damaged/index.html. Retrieved 2009-07-14. 
  89. ^ "100 Best Corporate Citizens 2007". Business Ethics Magazine. http://www.business-ethics.com/node/75. Retrieved 2008-11-05. 
  90. ^ "Airline Industry Scores". American Customer Satisfaction Index. http://www.theacsi.org/index.php?option=com_content&task=view&id=147&Itemid=155&i=Airlines. Retrieved 2008-05-15. 
  91. ^ "Tony Jannus Award Past Recipients". Tony Jannus Award. http://www.tonyjannusaward.com/legacy.html. Retrieved 2008-11-05. 
  92. ^ southwest fact sheet. Southwest Airlines' Recognitions


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