Southwest Airlines 1994 Annual Report Download - page 10

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Productivity
Southwest Airlines – 1994 Annual Report Page 10
Productivity
A cornerstone of our low operating cost structure is our high asset utilization and Employee productivity.
We are continually able to achieve the highest productivity of any U.S. airline. One reason for our
productivity advantage is our dedication to the shorthaul, high-frequency, low-fare, point-to-point market
niche. As a consequence, we only provide service to communities that have sufficient local traffic to
support our high-frequency operations profitably.
We schedule our aircraft on a point-to-point, not hub-and-spoke, basis and focus on local, not through or
connecting, traffic. As a result, approximately 80 percent of our Customers fly nonstop. Our point-to-point
route system, as compared to hub-and-spoke, provides for more direct nonstop routings for shorthaul
Customers and, therefore, minimizes stops, connections, delays, and total trip time. In addition, we serve
many conveniently located satellite or downtown airports such as Dallas Love Field, Houston Hobby,
Chicago Midway, Oakland, Burbank, Ontario, San Jose, and Baltimore. We avoid many congested hub
airports altogether and enhance our ability to sustain high productivity and reliable ontime performance.
Aircraft are scheduled to minimize the amount of time the aircraft is at the gate, generally less than 20
minutes, thereby reducing the number of aircraft and gate facilities that would otherwise be required.
Because of our shorthaul market focus, we require and have only one aircraft type, the Boeing 737. This
drastically simplifies scheduling, maintenance, flight operations, and training activities.
All combined, the point-to-point route system; high frequency and uncongested airport selection; single
aircraft type; high asset utilization; and high Employee productivity produce a very safe, efficient, and
cost-effective operation with exceptional ontime performance.
Passengers Carried Per Employee
3,00
0
2,00
0
1,00
0
2,393 2,597 2,633 2,676
2,450
1
9
9
4
1
9
9
3
1
9
9
2
1
9
9
1
1
9
9
0
Aircraft Utilization (hours and minutes per day)
11:1
5
11:0
0
10:4
5
10:3
0
11:03
10:39
10:56
11:10
10:48
1
9
9
4
1
9
9
3
1
9
9
2
1
9
9
1
1
9
9
0