Southwest Airlines 2013 Annual Report Download - page 25

personnel, and other matters affecting air safety. The FAA, acting through its own powers or through the
appropriate U.S. Attorney, has the power to bring proceedings for the imposition and collection of fines for
violation of the FAA regulations.
To address compliance with its regulations, the FAA requires airlines to obtain an air carrier operating
certificate and other certificates, approvals, and authorities. Pursuant to FAA regulations, the Company has
received a single air carrier operating certificate, in addition to other necessary certificates, approvals, and
authorities from the FAA, that allows the Company to operate aircraft and perform maintenance operations for
both Southwest and AirTran aircraft, subject to some restrictions. These certificates, approvals, and authorities
are subject to suspension or revocation for cause.
In December 2011, the FAA issued a rule to amend the FAA’s flight, duty, and rest regulations. Among
other things, the new rule, which went into effect in January 2014, requires a ten hour minimum rest period prior
to a pilot’s flight duty period; mandates that a pilot must have an opportunity for eight hours of uninterrupted
sleep within the rest period; and imposes new pilot “flight time” and “duty time” limitations based upon report
times, the number of scheduled flight segments, and other operational factors. The new rule may reduce the
Company’s staffing flexibility, which could impact the Company’s operational performance, costs, and Customer
Experience.
In October 2013, the FAA issued guidance that allows airlines to expand passenger use of portable
electronic devices (PEDs) during all phases of flight. After conducting appropriate testing and developing
necessary operational procedures, the Company received confirmation from the FAA that the Company’s PED
program meets the requirements of, and is consistent with, the guidance established by the FAA. As a result, the
Company’s Customers are now able to use small PEDs and connect to onboard wireless communications
systems, in certain circumstances, from gate to gate. This includes the use of onboard WiFi when travelling on a
Southwest WiFi-equipped airplane. Customers travelling on AirTran flights are unable to use GoGo WiFi below
10,000 feet due to GoGo transmission restrictions. Customers may use small PEDs such as smartphones, e-
readers, tablets, or MP3 players to read a book, play a built-in game, or listen to their personal music during all
phases of flight. However, once the main cabin door is closed, cell phones must be turned off or placed in the
device’s airplane/game mode for the duration of the flight. The new FAA policy considers laptops and any
device larger than a tablet (generally more than two pounds) as posing a hazard due to the physical size and
weight of the device. Such devices must be stowed in an approved stowage location during taxi, takeoff, and
landing.
The Company is subject to various other federal, state, and local laws and regulations relating to
occupational safety and health, including Occupational Safety and Health Administration and Food and Drug
Administration regulations.
Security Regulation
Pursuant to the Aviation and Transportation Security Act (“ATSA”), the Transportation Security
Administration (the “TSA”), a division of the U.S. Department of Homeland Security, is responsible for certain
civil aviation security matters. ATSA and subsequent TSA regulations and procedures implementing ATSA
address, among other things, (i) flight deck security; (ii) the use of federal air marshals onboard flights;
(iii) airport perimeter access security; (iv) airline crew security training; (v) security screening of passengers,
baggage, cargo, mail, employees, and vendors; (vi) training and qualifications of security screening personnel;
(vii) provision of passenger data to U.S. Customs and Border Protection; and (viii) background checks. Under
ATSA, substantially all security officers at airports are federal employees, and significant other elements of
airline and airport security are overseen and performed by federal employees, including federal security
managers, federal law enforcement officers, and federal air marshals. TSA personnel and TSA-mandated security
procedures can affect the Company’s operations, costs, and Customer experience. For example, in 2006, the TSA
implemented security measures regulating the types of liquid items that can be carried onboard aircraft. In 2009,
the TSA introduced its Secure Flight program. Secure Flight requires airlines to collect a passenger’s full name
(as it appears on a government-issued ID), date of birth, gender, and Redress Number (if applicable). Airlines
17