Southwest Airlines 2014 Annual Report Download - page 21

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In addition, as discussed below under “Inflight WiFi and Entertainment,” Southwest has
continued to install equipment on its fleet to provide access to WiFi connectivity and live television
utilizing the Customer’s mobile device.
Ancillary Services and Fees
During 2014, the Company continued to experience revenue benefits from service offerings
such as Southwest’s EarlyBird Check-In®and Pets Are Welcome on Southwest (P.A.W.S.) products.
EarlyBird Check-In provides Customers with automatic checkin so Customers are checked in 12 hours
before general boarding positions become available, improving Customers’ seat selection options.
Customers can purchase EarlyBird Check-In for an additional $12.50 each way (priority boarding
privileges are already a benefit of being an A-List frequent flyer - see “Operating Strategies and
Initiatives—Continued Growth of Southwest’s Rapid Rewards Frequent Flyer Program” above).
Southwest’s P.A.W.S. offering allows Customers to bring a small cat or dog into the aircraft cabin for
a $95 one-way fare. Southwest also charges an additional $50 per one-way trip for unaccompanied
minor travel to address the administrative costs and the extra care necessary to safely transport these
Customers. The Company also expects to continue to benefit from ancillary revenue opportunities
created by Southwest’s Rapid Rewards frequent flyer program.
Southwest sells open priority boarding positions in the first 15 boarding positions within
boarding group “A” systemwide at the gate for a $40 charge per flight based on availability (priority
boarding positions in the first 15 boarding positions within boarding group “A”, when available, are
already included in the purchase of a Business Select fare - see “Other Initiatives - Business Traveler
Amenities” above), which provides another priority boarding choice for its Customers in addition to
Southwest’s “Business Select” product and EarlyBird Check-In.
Southwest has a No Show policy that applies to nonrefundable fares that are not canceled or
changed by a Customer at least ten minutes prior to a flight’s scheduled departure. If a Customer has
booked a nonrefundable fare anywhere in his/her itinerary and that portion of the flight is not used and
not canceled or changed by the Customer at least ten minutes prior to scheduled departure, all unused
funds on the full itinerary will be forfeited, and the remaining reservation will be canceled. This policy
does not apply to military fares, senior fares, or travel during certain irregular operations, including
severe weather conditions. The No Show policy does not impact Customers who simply cancel a
Wanna Get Away or DING! ®fare at least ten minutes prior to scheduled departure; in this case,
Customers may reuse their funds toward future travel on Southwest, without a change fee. Customers
who are traveling on a fully refundable itinerary that does not contain a Wanna Get Away or DING!
fare have the option of either requesting a refund or holding funds for future travel. Southwest’s intent
with its No Show policy is to promote Customer behavior that will enable Southwest to re-sell the open
seat prior to departure.
During 2014, AirTran charged 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).
Inflight WiFi and Entertainment
Southwest offers inflight satellite-based WiFi service on all of its 737-700 and 737-800
aircraft, representing approximately 80 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 WiFi-enabled stops and connections. Southwest’s Customers with small
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