Southwest Airlines 1995 Annual Report Download - page 15

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15
In January 1995, we were the first major airline to fully implement Ticketless
Travel. Consequently, we are even less dependent on our competitors’ computer
reservations systems to distribute Southwest travel. In addition, our People are
also in the process of developing our own internal reservations system which will
further improve our productivity.
These accomplishments, along with our entry into Basic SABRE, resulted in
permanent reductions in our distribution costs and demonstrate how our
Employees never lose sight of Southwest’s number one competitive
advantage—the lowest cost structure in the airline industry.
Despite the intense competitive pressures we faced in 1995, our People
remained focused on growing our market niche. We added 25 aircraft and
increased our capacity by 12.6 percent. Although this was aggressive in the face
of significantly increased competition, our Employees effectively managed the
growth. We added only one new city, Omaha, which allowed our Employees to
further develop our route system, including the seven cities we added in 1994.
We also increased the number of our daily flights in Nashville to 35 by the end of
the year and are now Nashville’s largest carrier in terms of daily departures.
In 1996, we will take delivery of 20 new Boeing 737-300 aircraft, of which 11 will
be deployed in Florida service. We inaugurated service from Tampa and Ft.
Lauderdale on January 22, 1996 and will begin service from Orlando in April
1996.
Our Employees made an enormous investment in Southwest during 1995 and
thanks to their Southwest Spirit and “never stand still” attitude, Southwest is
positioned stronger than ever to meet the challenges of our extremely
competitive airline industry.
Revenue Passengers Carried (in thousands)
1991 1992 1993 1994 1995
22,670 27,839 36,955 42,743 44,786
Scheduled Service Only
Revenue Passenger Miles (in millions)
1991 1992 1993 1994 1995
11,296 13,787 18,827 21,611 23,328
Scheduled Service Only