Southwest Airlines 2011 Annual Report Download - page 12

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Integration of AirTran
During 2011, the Company began integrating AirTran into its operations. Although the Company
anticipates full integration may take several years, it accomplished the following key integration milestones
during 2011:
• The Company moved the vast majority of AirTran’s headquarters functions from Orlando to Dallas.
• The Company began optimizing AirTran’s network and released the first coordinated Southwest
and AirTran flight schedules.
• The Company took initial steps towards integrating the frequent flyer programs of Southwest and
AirTran.
• The Southwest Airlines Pilots’ Association (“SWAPA”), the union representing Southwest Pilots,
the Air Line Pilots Association (“ALPA”), the union representing the Pilots of AirTran, and the
Company reached an agreement to integrate the two Pilot groups’ seniority lists. The agreement
was approved by SWAPA’s Board of Directors and ALPA’s Master Executive Council and was
ratified by the membership of each union.
• The Transportation Workers of America, AFL-CIO, Local 556 (“TWU 556”), the union that
represents Southwest Flight Attendants, the Association of Flight Attendants (“AFA”), the union
that represents AirTran Flight Attendants, and the Company reached an agreement to integrate the
two Flight Attendant groups’ seniority lists. The agreement was approved by TWU 556’s Executive
Board and AFA’s Master Executive Council and, in January 2012, was ratified by the membership
of each union.
• The Aircraft Mechanics Fraternal Association (“AMFA”), the union representing Southwest
Aircraft Mechanics, the International Brotherhood of Teamsters, Local 528 (“IBT 528”), the union
representing the AirTran Mechanics, and the Company reached a tentative agreement subject to a
ratification vote by the unions’ respective memberships. The agreement would integrate the two
groups’ seniority lists and also create a single labor agreement.
• The Transportation Workers of America, AFL-CIO Local 557 (“TWU 557”), the union
representing Southwest Flight Instructors, an Employee Committee representing the Flight
Instructors of AirTran, and the Company reached an agreement to integrate the two groups’
seniority lists. TWU 557’s Executive Committee and the Employee Committee representing the
AirTran Flight Instructors voted to pass the agreement forward to their respective members. The
agreement was ratified by the respective memberships in January 2012.
During 2012, the Company expects to:
• receive approval from the Federal Aviation Administration (the “FAA”) of a single operating
certificate, which is significant from an operational policies and procedures perspective and, subject
to satisfactory resolution and integration of applicable union contracts, will allow the Company to
operate aircraft and perform maintenance operations for both Southwest and AirTran aircraft;
• begin conversion of AirTran’s fleet to the Southwest livery and continue to convert AirTran
products, gates, and services to Southwest’s look;
• launch travel booking tools to allow Customers of both Southwest and AirTran to book flights on
either carrier using either southwest.com or airtan.com;
• further integrate the Southwest and AirTran frequent flyer programs; and
• continue to further optimize and align the Southwest and AirTran networks, which is expected to be
a multi-year undertaking.
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