Southwest Airlines 2014 Annual Report Download - page 13

Download and view the complete annual report

Please find page 13 of the 2014 Southwest Airlines annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 156

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156

Fare Structure
Southwest
Southwest offers a relatively simple fare structure that features competitive, unrestricted,
unlimited, everyday coach fares, as well as lower fares available on a restricted basis. Southwest
bundles fares into three major categories: “Wanna Get Away®,” “AnytimeSM,” and “Business Select®,”
with the goal of making it easier for Customers to choose the fare they prefer. All fare products include
the privilege of two free checked bags. In addition, regardless of the fare product, Southwest does not
charge fees for changes to flight reservations.
• “Wanna Get Away” fares are generally the lowest fares and are subject to advance
purchase requirements. They are nonrefundable but, subject to compliance with
Southwest’s No Show policy, funds may be applied to future travel on Southwest. As
discussed below under “Operating Strategies and Initiatives - Ancillary Services and
Fees,” Southwest has a No Show policy associated with Wanna Get Away tickets that are
not canceled or changed at least ten minutes prior to a flight’s scheduled departure.
• “Anytime” fares are refundable and changeable, and funds may also be applied toward
future travel on Southwest. Anytime fares also include a higher frequent flyer point
multiplier under Southwest’s Rapid Rewards®frequent flyer program than do Wanna Get
Away fares.
• “Business Select” fares are refundable and changeable, and funds may be applied toward
future travel on Southwest. Business Select fares also include additional perks, when
available, such as priority boarding in the first 15 boarding positions within boarding
group “A,” a higher frequent flyer point multiplier than other Southwest fares (including
twice as many points per dollar spent as compared with Wanna Get Away fares), “Fly
By®” priority security and ticket counter access in select airports, and one complimentary
adult beverage coupon for the day of travel (for Customers of legal drinking age).
AirTran
During 2014, AirTran offered a user-friendly fare structure that featured a variety of
competitive fares and products. Unlike Southwest, AirTran offered a Business Class product. With the
exception of Business Class fares, all AirTran fares were nonrefundable, but could be changed prior to
departure, subject to payment of a service charge. AirTran Business Class fares were refundable and
changeable and included additional perks such as priority boarding, oversized seats with additional leg
room, bonus frequent flyer credit, no first or second bag fees, and complimentary cocktails onboard. In
addition, AirTran’s Business Class product could be purchased separately or through an upgrade of a
non-Business Class fare within 24 hours of travel.
Websites
The Company’s Internet website, southwest.com®, is the only avenue for Southwest
Customers to purchase and manage travel online. Any part of a Customer’s trip can be planned directly
from the southwest.com home page. Southwest.com is designed to help make the Customer’s
experience personal and intuitive with features such as recognizing the Customer’s location to provide
relevant deals, remembering recent searches to make it easy to get to trips of interest, and shopping cart
functionality allowing Customers to purchase air, hotel, and car all at once. Southwest.com highlights
points of differentiation between Southwest and other air carriers, as well as the fact that
5