Southwest Airlines 1997 Annual Report Download - page 10

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10
SOUTHWEST AIRLINES CO. ♥ FIVE SYMBOLS OF FREEDOM
than half the industry standard. Therefore, we get lots more use of our
aircraft and much lower unit costs.
We also use only one aircraft type, the Boeing 737, in an all-coach
configuration. This substantially reduces costs versus the industry due to
simplified operations, training, scheduling, and maintenance. Our fleet of
737s is young, safe, comfortable, clean, and perfectly suited for shorthaul
flights.
Our fare structure is simple and this means the cost of selling our product
is less than industry average. Over 60 percent of our Customers buy
travel on Southwest on a ticketless basis — it is easier for our Customers
and less expensive for Southwest than a paper ticket. Boarding the
aircraft is also fast and efficient.
Finally, and most importantly, we have a Culture that values efficiency,
hard work, innovation, and simplicity. Our People have the will and the
desire to produce low costs. That’s how the low cost producer keeps
finding ways to reduce costs further.
“WE ARE A LOW FARE AIRLINE BY PHILOSOPHY. WHEN WE GO INTO A NEW
MARKET OUR COMPETITORS USUALLY LOWER THEIR FARES. THE
DIFFERENCE IS OUR FARES STAY LOW — WHENEVER AND WHEREVER WE
FLY.”
Gary C. Kelly, Vice President -
Finance, Chief Financial Officer