Southwest Airlines 2010 Annual Report Download - page 35

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Firm Orders, Options and Purchase Rights for Boeing 737-700 and 737-800 Aircraft
The Boeing Company
-700 Firm -800 Firm Options
Purchase
Rights
Previously -
Owned
700 Total
2011................................. 17 — — — 2 19
2012................................. — 20 — — — 20
2013................................. 19 — 6 — — 25
2014................................. 21 — 6 — — 27
2015................................. 14 — 1 — — 15
2016................................. 17 — 7 — — 24
2017................................. — — 17 — — 17
Through 2021 ......................... — — — 98 — 98
Total ................................ 88* 20 37 98 2 245
* The Company is evaluating substituting 737-800s in lieu of 737-700 firm orders currently scheduled for 2013
through 2016.
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),
its flight training center at Dallas Love Field (which houses eight 737 simulators), and its corporate headquarters,
also located at Dallas Love Field. During 2008, the City of Dallas approved the Love Field Modernization
Program (LFMP), a project to reconstruct Dallas Love Field (Airport) with modern, convenient air travel
facilities. Pursuant to a Program Development Agreement (PDA) with the City of Dallas and the Love Field
Airport Modernization Corporation (or LFMAC, a Texas non-profit “local government corporation” established
by the City to act on the City’s behalf to facilitate the development of the LFMP), the Company is managing this
project. Major construction commenced during 2010, with completion of the project scheduled for the second
half of 2014. Although subject to change, at the current time the project is expected to include the renovation of
the Airport airline terminals and complete replacement of gate facilities with a new 20-gate facility, including
infrastructure, systems and equipment, aircraft parking apron, fueling system, roadways and terminal curbside,
baggage handling systems, passenger loading bridges and support systems, and other supporting infrastructure.
The LFMP is discussed in more detail below under “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” and in Note 4 to the Consolidated Financial Statements. As of
December 31, 2010, the Company operated six Customer Support and Services centers. The centers located in
Chicago, Albuquerque, and Oklahoma City occupy leased space. The Company owns its Houston, Phoenix, and
San Antonio centers.
The Company performs substantially all line maintenance on its aircraft and provides ground support
services at most of the airports it serves. However, the Company has arrangements with certain aircraft
maintenance firms for major component inspections and repairs for its airframes and engines, which comprise the
majority of the Company’s annual aircraft maintenance costs.
Item 3. Legal Proceedings
Various purported class action lawsuits have been filed by stockholders of AirTran that challenge the
proposed acquisition of AirTran by the Company.
29