Southwest Airlines 1995 Annual Report Download - page 14

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14
SECRET NUMBER 5
Never stand still.
Southwest Airlines provides quick turnarounds at our gates. We
also respond quickly to changes in the business environment.
Which helps keep us one step ahead of our competition.
“One thing is for certain: Things will change. How well you
anticipate and how quickly you deal with change determines
your success.”
Herbert D. Kelleher
Chairman, President, &
Chief Executive Officer
In the rough and tumble airline industry, we must be able to react quickly to
competitive challenges. Our low costs and energetic Employees allow Southwest
to do just that!
Only the remarkable People of Southwest could have responded to the multitude
of challenges we have recently faced and “turned around” our disappointing first
quarter 1995 results so quickly. Our Employees effectively defended themselves
from simultaneous assaults from Continental Lite and the United Shuttle. By mid-
1995, Continental completely dismantled Continental Lite; and by January 1996,
the United Shuttle had substantially reduced service in our Oakland, California,
markets. We now compete against the United Shuttle in only six markets.
Our Employees swiftly corrected the technological Reservations System problem
we encountered during fourth quarter 1994 and first quarter 1995. In addition,
we opened two reservations centers in Little Rock and Oklahoma City during
1995 to ensure adequate reservations capacity for future growth.
We enhanced our fare structure, which led to dramatic improvements in our
yields, from fourth quarter 1994 and first quarter 1995 levels. We ended 1995
with record revenue per RPM.