Southwest Airlines 2013 Annual Report Download - page 22

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Mobile Website and Mobile Boarding Passes
In 2013, Southwest introduced a new completely redesigned Southwest mobile website and app for iPhone
and Android. Southwest added new features and functionality, and also updated the design and navigation to
provide a more contextual and personalized online experience than the prior mobile website. With the redesigned
mobile experience, Southwest began the rollout of its mobile boarding pass pilot launched during November
2013. The rollout began with single Passengers on nonstop and direct flights originating from Austin, Texas, and
Southwest expects to continue the rollout of mobile boarding pass to other cities across its network throughout
2014.
Management Information Systems
The Company has continued its commitment to technology improvements to support its ongoing
operations and initiatives. The Company has continued to invest in significant technology necessary to support
several of its initiatives, including the implementation of connecting capabilities between the Southwest and
AirTran reservation systems, Southwest’s Rapid Rewards frequent flyer program, enhanced southwest.com
website, WiFi implementation, live television connectivity, and its introduction of the Boeing 737-800 aircraft
into the Southwest fleet. In addition, the Company has added new reservation system technology to support
Southwest’s international itineraries and, in January 2014, began selling its first international itineraries to be
flown by Southwest aircraft.
The Company intends to continue to devote significant technology resources towards, among other things,
(i) continued improvement of its revenue management technical capabilities, (ii) replacement of Southwest’s
existing domestic reservation system with a comprehensive system that would provide Southwest with the ability
to serve both domestic and international markets, and (iii) a new suite of operational tools that the Company
expects will improve operational management.
Regulation
The airline industry is heavily regulated, especially by the federal government. Examples of regulations
affecting the Company and/or the industry are discussed below.
Economic and Operational Regulation
Consumer Protection Regulation by the U.S. Department of Transportation
The U.S. Department of Transportation (the “DOT”) regulates aviation safety, as well as economic
operating authority and consumer protection. The DOT may impose civil penalties on air carriers for violating its
regulations.
To provide passenger transportation in the United States, a domestic airline is required to hold a Certificate
of Public Convenience and Necessity issued by the DOT. A certificate is unlimited in duration, and the
Company’s certificate generally permits it to operate among any points within the United States and its territories
and possessions. Additional DOT authority, in the form of a certificate or exemption from certificate
requirements, is required for a U.S. airline to serve foreign destinations either with its own aircraft or via
codesharing with another airline. The DOT also has jurisdiction over international tariffs and pricing in certain
markets. The DOT may revoke a certificate or exemption, in whole or in part, for intentional failure to comply
with federal aviation statutes, regulations, orders, or the terms of the certificate itself.
The DOT’s consumer protection and enforcement activities relate to areas such as unfair and deceptive
practices and unfair competition by air carriers, deceptive airline advertising (e.g., fare, ontime performance,
schedule, and codesharing), and violations of rules concerning denied boarding compensation, ticket refunds, and
baggage liability requirements. The DOT is also charged with prohibiting discrimination by airlines against
consumers on the basis of race, religion, national origin, or sex.
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