Southwest Airlines 2005 Annual Report Download - page 22

basis. Service at this airport may be adjusted annually to mately 1.7 hours. Examples of markets offering frequent
meet these requirements. daily flights are: Dallas to Houston Hobby, 29 weekday
roundtrips; Phoenix to Las Vegas, 19 weekday round-
The Company is subject to various other federal, trips; and Los Angeles International to Oakland,
state, and local laws and regulations relating to the 22 weekday roundtrips. Southwest complements these
protection of the environment, including the discharge high-frequency shorthaul routes with longhaul nonstop
or disposal of materials such as chemicals, hazardous service between markets such as Baltimore and Los
waste, and aircraft deicing fluid. Regulatory develop- Angeles, Phoenix and Tampa Bay, Las Vegas and
ments pertaining to such things as control of engine Nashville, and Houston and Oakland.
exhaust emissions from ground support equipment and
Southwest's point-to-point route system, as com-
prevention of leaks from underground aircraft fueling
pared to hub-and-spoke, provides for more direct non-
systems could increase operating costs in the airline
stop routings for Customers and, therefore, minimizes
industry. The Company does not believe, however, that
connections, delays, and total trip time. Southwest
such environmental regulatory developments will have a
focuses on nonstop, not connecting, traffic. As a result,
material impact on the Company's capital expenditures
approximately 79 percent of the Company's Customers
or otherwise adversely effect its operations, operating
fly nonstop. In addition, Southwest serves many conve-
costs, or competitive position. Additionally, in conjunc-
niently located secondary or downtown airports such as
tion with airport authorities, other airlines, and state
Dallas Love Field, Houston Hobby, Chicago Midway,
and local environmental regulatory agencies, the Com-
Baltimore-Washington International, Burbank,
pany is undertaking voluntary investigation or remedia-
Manchester, Oakland, San Jose, Providence,
tion of soil or groundwater contamination at several
Ft. Lauderdale/Hollywood, and Long Island Islip air-
airport sites. The Company does not believe that any
ports, which are typically less congested than other
environmental liability associated with such sites will
airlines' hub airports and enhance the Company's ability
have a material adverse effect on the Company's opera-
to sustain high Employee productivity and reliable on-
tions, costs, or profitability.
time performance. This operating strategy also permits
Customer Service Commitment. From time to the Company to achieve high asset utilization. Aircraft
time, the airline transportation industry has been faced are scheduled to minimize the amount of time the
with possible legislation dealing with certain Customer aircraft are at the gate, currently approximately 25
service practices. As a compromise with Congress, the minutes, thereby reducing the number of aircraft and
industry, working with the Air Transport Association, gate facilities than would otherwise be required. The
has responded by adopting and filing with the DOT Company operates only one aircraft type, the Boeing
written plans disclosing how it would commit to im- 737, which simplifies scheduling, maintenance, flight
proving performance. Southwest Airlines' Customer operations, and training activities.
Service Commitment is a comprehensive plan which
In first quarter 2005, Southwest began its first
embodies the Mission Statement of Southwest Airlines:
codeshare arrangement, with ATA Airlines. Under its
dedication to the highest quality of Customer Service
codeshare arrangement with ATA, Southwest may mar-
delivered with a sense of warmth, friendliness, individual
ket and sell tickets for certain flights on ATA that are
pride, and Company Spirit. The Customer Service
identified by Southwest's designator code, e.g., WN
Commitment can be reviewed by clicking on ""About
Flight 123. Conversely, ATA may market and sell
SWA'' at www.southwest.com. The DOT and Congress
tickets under its code designator (TZ) for certain
monitor the industry's plans, and there can be no
flights on Southwest Airlines. Any flight bearing a
assurance that legislation or regulations will not be
Southwest code designator that is operated by ATA is
proposed in the future to regulate airline Customer
disclosed in Southwest's reservations systems and on the
service practices.
Customer's flight itinerary, boarding pass, and ticket, if
a paper ticket is issued. In December 2005, Southwest
Marketing and Competition enhanced the codeshare arrangement with ATA, subject
Southwest focuses principally on point-to-point, to certain conditions, including ATA's confirmed Plan
rather than hub-and-spoke, service in markets with of Reorganization, which must be fulfilled by Febru-
frequent, conveniently timed flights and low fares. At ary 28, 2006. Other than the ATA agreement, South-
year-end, Southwest served 374 nonstop city pairs. west does not interline or offer joint fares with other
Southwest's average aircraft trip stage length in 2005 airlines, nor does Southwest have any commuter feeder
was 607 miles with an average duration of approxi- relationships.
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