Southwest Airlines 1999 Annual Report Download - page 5

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In shorthaul markets where driving is a viable option, Herb and Rollin knew speed
and convenience were essential to success. Therefore, Southwest was designed to
minimize total travel time, including ticketing and boarding. Additionally, Southwest served
convenient airports, like Dallas Love Field and Houston Hobby.
Herb and Rollin recognized that Southwest might not be all things to all Customers.
They didn’t plan to fly everywhere and didn’t plan to build hub or connecting complexes at
airports. Instead, they focused on meeting the needs of point-to-point, shorthaul Customers
since no other airline was doing a good job of meeting those needs.
Herb and Rollin knew they must have low costs to offer low fares. After all, a
business needs to make a profit. So they envisioned an operation that was far superior in
terms of efficiency, productivity, and just plain common sense. Since they focused on the
shorthaul market niche, they concluded a single aircraft type made sense for Customers
and it would certainly be more efficient. Reservations could be made, but seating would be
open. Assigned seating was not in the vision because we consider all of our seats as “first
class!” On short flights, meals aren’t necessary. What is necessary for the shorthaul
Customer is consistently low fares; reliable, ontime flights; and friendly Employees to assist
with travel needs and to ensure that baggage is delivered immediately and without
damage.
Herb and Rollin never envisioned that Southwest would be the “biggest” airline, or
be the one with the most exotic route system, or operate the biggest airplanes. What they
did envision, though, is the Freedom to Fly for our Customers; a safe and high-quality
operation; an exceptional Service to Customers; a great place to work; and the most
profitable airline.
Operating Revenues Per Available Seat Mile Operating Expenses Per Available Seat
Mile (in cents) (in cents)
7.94 8.36 8.58 8.76 8.96
0
3
6
9
95 96 97 98 99
7.07 7.50 7.40 7.32 7.48
0
3
6
9
95 96 97 98 99