Southwest Airlines 2005 Annual Report Download - page 25

Southwest has ten collective bargaining agreements covering approximately 82 percent of its Employees. The
following table sets forth the Company's Employee groups and collective bargaining status:
Employee Group Represented by Agreement Amendable on
Customer Service and Reservations
Agents ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ International Association of November 2008 (or 2006 at the
Machinists and Aerospace Workers, Union's option under certain
AFL-CIO conditions)
Flight Attendants ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Transportation Workers of America, June 2008
AFL-CIO (""TWU'')
Ramp, Operations, and Provisioning
and Freight Agents ÏÏÏÏÏÏÏÏÏÏÏ TWU June 2008 (or 2006 at the Union's
option under certain conditions)
Pilots ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Southwest Airlines Pilots' September 2006
Association
Flight Dispatchers ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Southwest Airlines Employee December 2009
Association
Aircraft Appearance Technicians ÏÏ Aircraft Mechanics Fraternal February 2009
Association (""AMFA'')
Stock Clerks ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ International Brotherhood of August 2008
Teamsters (""Teamsters'')
Mechanics ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ AMFA August 2008
Flight Simulator Technicians ÏÏÏÏÏ Teamsters November 2011
Flight/Ground School Instructors
and Flight Crew Training
Instructors ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Southwest Airlines Professional December 2012
Instructors Association
Item 1A. Risk Factors rising fuel costs. Changes in the Company's overall fuel
hedging strategy, the continued ability of the commodi-
In addition to the other information contained in ties used in fuel hedging (principally crude oil, heating
this Form 10-K, the following risk factors should be oil, and unleaded gasoline) to qualify for special hedge
considered carefully in evaluating Southwest's business. accounting, and the continued effectiveness of the Com-
The Company's business, financial condition, or results pany's fuel hedges pursuant to highly complex account-
of operations could be materially adversely affected by ing rules, are all significant factors impacting the
any of these risks. Please note that additional risks not Company's operating results. For more information on
presently known to the Company or that the Company Southwest's fuel hedging arrangements, see ""Manage-
currently deems immaterial may also impair its business ment's Discussion and Analysis of Financial Condition
and operations. and Results of Operations,'' and Note 10 to the Consol-
idated Financial Statements.
Southwest's business is dependent on the price and
availability of aircraft fuel. Southwest's business is labor-intensive.
Historically, the Company's relationships with its
The cost of fuel is largely unpredictable, and has a
Employees have been very good. However, the results of
significant impact on the Company's operating results.
labor contract negotiations (approximately 82% of the
Also, significant disruptions in the supply of aircraft fuel
Company's Employees are represented for collective
could have a negative impact on the Company's opera-
bargaining purposes by labor unions), Employee hiring
tions and operating results. Due to the competitive
and retention rates, and costs for health care are items
nature of the airline industry, the Company generally
with potentially significant impact on the Company's
has not been able to increase fares when fuel prices have
operating results.
risen in the past and the Company may not be able to
do so in the future. From time to time the Company
enters into hedging arrangements to protect against
6