Southwest Airlines 2009 Annual Report Download - page 26

Download and view the complete annual report

Please find page 26 of the 2009 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 108

  • 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
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

The airline industry is intensely competitive.
As discussed in more detail above under “Business — Competition,” the airline industry is extremely
competitive. The Company’s competitors include other major domestic airlines, as well as regional and new
entrant airlines, and other forms of transportation, including surface transportation. The Company’s revenues are
sensitive to the actions of other carriers in capacity, pricing, scheduling, codesharing, and promotions.
Item 1B. Unresolved Staff Comments
None.
Item 2. Properties
Aircraft
The Company operated a total of 537 Boeing 737 aircraft as of December 31, 2009, of which 88 and 9 were
under operating and capital leases, respectively. The remaining 440 aircraft were owned. The Company also had
four owned Boeing 737 aircraft in long-term storage as of December 31, 2009.
The following table details information on the 537 active aircraft in the Company’s fleet as of December 31,
2009:
737 Type Seats
Average Age
(Yrs)
Number of
Aircraft
Number
Owned (1)
Number
Leased
-300 ....................... 137 18.0 172 104 68
-500 ....................... 122 18.7 25 16 9
-700 ....................... 137 6.1 340 320 20
Totals ..................... 10.5 537 440 97
(1) As discussed further in Note 7 to the Consolidated Financial Statements, 128 of the Company’s
aircraft have been pledged as collateral.
In total, at January 20, 2010, the Company had firm orders, options and purchase rights for the purchase of
Boeing 737 aircraft as follows:
Firm Orders, Options and Purchase Rights for Boeing 737-700 Aircraft
The Boeing Company
Delivery Year Firm Orders Options Purchase Rights Total
2010 ...................................... 10 — — 10
2011 ...................................... 10 7 — 17
2012 ...................................... 13 10 — 23
2013 ...................................... 19 4 — 23
2014 ...................................... 13 7 — 20
2015 ...................................... 14 3 — 17
2016 ...................................... 12 11 — 23
2017 ...................................... — 17 — 17
Through 2018 .............................. — — 54 54
Total ..................................... 91 59 54 204
Ground Facilities and Services
The Company leases terminal passenger service facilities at each of the airports it serves, to which it has
made various leasehold improvements. The Company leases the land and structures on a long-term basis for its
maintenance centers (located at Dallas Love Field, Houston Hobby, Phoenix Sky Harbor, and Chicago Midway),
18