Southwest Airlines 2013 Annual Report Download - page 14

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The Internet is also an integral part of AirTran’s distribution network. In addition to being user-friendly
and simple, AirTran’s website is designed to sell tickets efficiently. AirTran.com allows Customers to easily
book and manage their travel, including the ability to retrieve and change future flight reservations, make seat
selections, and check in online. As part of the Company’s network connectivity efforts, Customers can now book
AirTran flights on southwest.com, including itineraries that include both an AirTran and Southwest flight.
During 2013, southwest.com and airtran.com together accounted for approximately 80 percent of all of the
Company’s bookings. In addition, for the year ended December 31, 2013, approximately 84 percent of the
Company’s Passenger revenues came through its websites (including revenues from SWABIZ®).
Operating Strategies and Initiatives
During 2013, the Company continued to focus on five strategic initiatives: (i) the integration of
Southwest’s and AirTran’s network and operations, (ii) fleet modernization, (iii) the continued incorporation of
the larger Boeing 737-800 aircraft into the Southwest fleet, (iv) international capabilities and new reservation
system, and (v) the continued growth of Southwest’s Rapid Rewards frequent flyer program. In addition to the
Company’s five strategic initiatives, the Company has continued to design, implement, and manage other
initiatives to increase revenues, improve cost controls, and attract and retain Customers.
Strategic Initiatives
Integration of Southwest’s and AirTran’s Network and Operations
The Company remains on track with its plan to fully integrate Southwest’s and AirTran’s network and
operations by the end of 2014. During 2013, the Company continued the process of integrating AirTran into its
operations and accomplished the following key integration milestones:
• The Company fully deployed connecting capabilities between the Southwest and AirTran networks
allowing Customers of both Southwest and AirTran to book connecting itineraries between the two
carriers. Customers can now fly between any of the combined 96 Southwest and AirTran destinations
on a single itinerary.
• The Company continued to transfer AirTran Employees to Southwest. As of December 31, 2013,
approximately 65 percent of AirTran Employees had been converted to Southwest Employees. The
transfer of all remaining AirTran Employees, including flight crews and dispatchers whose transition
is aligned with aircraft conversion, is scheduled for 2014.
• The Company continued to further optimize its route network by, among other things, transitioning
AirTran’s operations at Hartsfield-Jackson Atlanta International Airport to a point-to-point
operation, which is expected to enable efficiencies related to the scheduling of aircraft, flight crews,
and ground staff.
• The Company continued to convert AirTran 737-700 aircraft to the Southwest livery. As of
December 31, 2013, 17 out of a total of 52 AirTran 737-700 aircraft had completed the conversion
process and re-entered service as Southwest aircraft. The Company expects to convert the remaining
35 AirTran 737-700 aircraft during 2014 in conjunction with the expected conversion of AirTran’s
seven international markets.
• The Company continued its schedule optimization efforts by further coordinating Southwest and
AirTran flight schedules.
• The Company significantly grew the Southwest network by converting AirTran service to Southwest
service in several new markets. The Company has established a Southwest presence in all domestic
cities in Southwest’s and AirTran’s combined network.
• The Company continued its progress towards integrating Southwest’s and AirTran’s unionized
workforce. AirTran’s Flight Attendants, represented by the Association of Flight Attendants-CWA
6