Southwest Airlines 2013 Annual Report Download - page 21

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who are traveling on a fully refundable itinerary that does not contain a Wanna Get Away or DING! fare will
continue to have the option of either requesting a refund or holding funds for future travel. Southwest expects
that the No Show policy will promote Customer behavior that will enable Southwest to re-sell the open seat prior
to departure.
AirTran currently charges fees for checked baggage, carriage of pets, liquor sales, advance seat
assignments, call center services, priority seat selection, special services such as the transportation of
unaccompanied minors, and extension or transfer of A+ Miles Rewards (in addition to fees for the purchase of
A+ Miles Rewards). The Company intends, upon full integration of AirTran, to have a consistent product
offering.
Inflight WiFi and Entertainment
Southwest offers inflight satellite-based WiFi service on all of its 737-700 and 737-800 aircraft,
representing over 75 percent of Southwest’s fleet. Southwest’s arrangement with its WiFi provider enables the
Company to control the pricing of the WiFi service, which is currently $8 a day per device, including stops and
connections. As discussed below in “Economic and Operational Regulation — Operational, Safety, and Health
Regulation,” Southwest’s Customers are now able to use small portable electronic devices to utilize the airline’s
onboard WiFi from gate-to-gate when travelling on a Southwest WiFi-equipped airplane. Southwest is currently
the only carrier to offer gate-to-gate connectivity.
AirTran currently offers GoGo’s inflight internet connectivity on every Air Tran flight. Gogo establishes
the charges for the service, which are based on flight length.
In 2013, Southwest continued to grow the onboard entertainment options on WiFi-equipped aircraft for
viewing on Customers’ personal wireless devices. In July 2013, the Company joined with DISH Network to give
Customers on WiFi-equipped aircraft free access to Southwest’s live and on-demand television product. In
January 2014, the Company and DISH Network agreed to extend this promotion through the end of 2014. The
television product currently consists of 17 live channels and up to 75 on-demand recorded episodes from popular
television series.
Southwest also added movies-on-demand, which are currently priced at $5 per movie and, in December
2013, became the first airline to offer a Messaging-only option for $2 a day per device, including all stops and
connections. Messaging is currently only available for Apple’s iMessage service, but is expected to expand in
early 2014 to other messaging platforms.
Customers do not have to purchase WiFi to access television offerings, movies-on-demand, or the
Messaging-only service.
Proactive Customer Communications
The Company’s Automated Outbound Messaging (“AOM”) service enables it to (i) proactively deliver
customized automated voice, text, and e-mail messages to Southwest Customers when there has been a change in
their flight status as a result of a cancellation or flight delay (of 30 minutes or more), as well as potential
disruptions to Southwest’s scheduled service; and (ii) give Southwest Customers the option to connect to a
Customer Representative or rebook online in the case of cancelled flights. Southwest Customers who book their
travel on southwest.com have the option to receive these notifications via telephone (landline or mobile), SMS
texting, or email. In addition to providing flight information to Southwest Customers using their preferred
contact method, if applicable, the Company directs Southwest Customers to rebook their flights online via
southwest.com/rebook. The AOM strategy is designed to increase proactive Customer outreach and
accommodations, reduce inbound calls, improve contact center management, save costs, and provide a better
overall experience.
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