Southwest Airlines 2005 Annual Report Download - page 28

Download and view the complete annual report

Please find page 28 of the 2005 Southwest Airlines annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 78

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78

services at most of the airports it serves. However, the the insurance maintained by the Company. Conse-
Company has arrangements with certain aircraft main- quently, the Company does not expect any litigation
tenance firms for major component inspections and arising from the accident involving Flight 1248 to have
repairs for its airframes and engines, which comprise the a material adverse affect on the financial position or
majority of the annual aircraft maintenance costs. results of operation of the Company.
The Company is subject to various legal proceed-
Item 3. Legal Proceedings ings and claims arising in the ordinary course of busi-
ness, including, but not limited to, examinations by the
On December 8, 2005, Southwest Airlines Flight
Internal Revenue Service (IRS). The IRS regularly
1248 was involved in an accident at Chicago Midway
examines the Company's federal income tax returns and,
Airport while the aircraft, a Boeing 737-700, was
in the course of those examinations, proposes adjust-
landing. The aircraft overran the runway onto a roadway
ments to the Company's federal income tax liability
and collided with an automobile. Several occupants of
reported on such returns. It is the Company's practice
the vehicles involved in the accident were injured, one
to vigorously contest those proposed adjustments that it
fatally. The Company continues to cooperate fully with
deems lacking merit. The Company's management does
all federal, state, and local regulatory and investigatory
not expect the outcome in any of its currently ongoing
agencies to determine the cause of this accident. The
legal proceedings or the outcome of any proposed
Company is currently unable to predict the amount of
adjustments presented to date by the IRS, individually
claims, if any, relating to this accident which may
or collectively, will have a material adverse effect on the
ultimately be made against it and how those claims
Company's financial condition, results of operations, or
might be resolved. At this time, the Company has no
cash flows.
reason to believe that the costs to defend any claims and
any potential liability exposure will not be covered by
Item 4. Submission of Matters to a Vote of Security Holders
None to be reported.
EXECUTIVE OFFICERS OF THE REGISTRANT
The executive officers of Southwest, their positions, and their respective ages (as of January 1, 2006) are as
follows:
Name Position Age
Herbert D. Kelleher ÏÏÏÏÏÏÏÏÏÏÏÏ Chairman of the Board 74
Gary C. Kelly ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Vice Chairman of the Board and Chief Executive Officer 50
Colleen C. Barrett ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ President and Secretary 61
Donna D. Conover ÏÏÏÏÏÏÏÏÏÏÏÏÏ Executive Vice President Ì Customer Operations 52
Michael G. Van de Ven ÏÏÏÏÏÏÏÏÏ Executive Vice President Ì Aircraft Operations 44
Laura H. Wright ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Senior Vice President Ì Finance and Chief Financial
Officer 45
Joyce C. Rogge ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Senior Vice President Ì Marketing 48
Executive officers are elected annually at the first meeting of Southwest's Board of Directors following the annual
meeting of shareholders or appointed by the Chief Executive Officer pursuant to Board authorization. Each of the
above individuals has worked for Southwest Airlines Co. for more than the past five years.
9