Southwest Airlines 2005 Annual Report Download - page 7

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DING! That’s the unmistakable
sound of Southwest’s innovative
audio reminder that it’s time
for our Customers to save even
more on our legendary low
fares at southwest.com. This
downloadable desktop icon
automatically alerts subscribers
to shortterm Internet specials.
As long as they are within
earshot of their computers, our
familiar DING! will chime loud
and clear in their ears.
SOUTHWEST AIRLINES CO. ANN UAL REPORT 2005
for Corporate Travel Managers to better manage their business travel data.
This service is provided free of charge to thousands of travel managers of
small- to medium-sized businesses, as well as hundreds of the Fortune 500
companies who book their business travel on Southwest.
Southwests low fares have always made last-minute travel affordable.
Customers can share that convenience with a friend or loved one with
a gift of the s o u t hwe stgiftcard, the gift of a destination! Were always
interested in giving our Customers a new way to enjoy our low fares. Through
our everyday low fares, bread th of s ervice across the country, easy-to-use
web site, an d now the so u thwestgiftcard, travel on S outhwest Airline s is
the ide al gift .
Rapid Rewards
Not only do we offer our Customers convenient low fares, our Rapid
Rewards Program is a generous and simple way for our frequent flyers to
earn free travel. Members earn credits by flying or doing business with the
programs preferred partners. In the past, Southwest Members were required
to fly eight roundtrips or earn 16 credits in a 12-month period to receive a
roundtrip award. However, our Customers asked for more time to earn Award
Travel, so we now allow Members 24 months to earn credits toward free
travel. As part of this change, Southwest will remove systemwide blackout
dates and implement seat restrictions for Award travel effective February 10,
2006. Once an Award is earned (by flying, buying, staying, driving, or
surfing the Internet), Southwest automatically credits the Ticketless Award
to our Customer s online accountfree travel fast with no hassle. Plus
Southwest allows Members to transfer, but not sell, the Award to anyone.
The Award is free but subject to the U.S. government September 11th Security
Fee of up to $10 roundtrip.
Southwests generous Companion Pass program remained just as bountiful
a s b e f o re ! W h e n a M e m b e r f l i e s 50 r o u n d t r i p s (o r r e ce i ve s a to t a l o f
1 0 0 credits through flight or partner use) within a 12-month period, that
member receives a Companion Pass, which allows the member to designate
a Companion to fly with them for free for an entire year. The Companions
travel is not subject to seat capacity restrictions or blackout dates.
Southwest Airlines Rapid Rewards program is widely recognized by users
and industry watchers as the simplest and most lucrative frequent flyer
program in the airline industry. For the seventh straight year, our program
was honored with first place for Best Award Redemption at InsideFlyer
magazines 17th annual Freddie Awards ceremony. Southwest also received
first place awards for Best Customer Service and Best Bonus Promotion.
Low-Cost Leadership
Our Employees understand that it is only through low costs that we can
profitably offer low fares. After 34 years, Southwest is still the Low-Cost
Leader even though there are lots of airlines competing for the low-fare, low-
cost niche. In 2005, we again had the lowest unit costs (adjusted for stage
It doesnt matter who they are. They all match our industry-leading low fares. They
will fly airplanes. So far, they havent been able to match our great People. That’s
our true strength and why Im confident about the future of Southwest Airlines.
CEO Gary Kelly, The Wall Street Journal
6