Southwest Airlines 2009 Annual Report Download - page 19

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The airline industry as a whole is also subject to varying degrees of competition from surface transportation,
and the Company may have more exposure to this form of competition than airlines that fly longer average stage
lengths. Surface competition can be more significant during economic downturns when consumers cut back on
discretionary spending. Delays or inconveniences associated with air travel security measures may also increase
surface competition. To a certain extent, the airline industry also competes with alternatives to travel such as
videoconferencing and the Internet.
Seasonality
The Company’s business is somewhat seasonal. Quarterly operating income and, to a lesser extent, revenues
have historically tended to be lower in the first quarter (January 1 — March 31) and, although not the case for
2009, fourth quarter (October 1 — December 31).
Employees
At December 31, 2009, the Company had 34,726 active fulltime equivalent Employees, consisting of 15,345
flight, 2,488 maintenance, 11,943 ground, Customer, and fleet service, and 4,950 management, accounting,
marketing, and clerical personnel.
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