Southwest Airlines 2014 Annual Report Download - page 27

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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
CBP; 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 must transmit this information to Secure Flight, which uses the information to
perform matching against terrorist watch lists. After matching passenger information against the watch
lists, Secure Flight transmits the matching results back to airlines. This serves to identify individuals
for enhanced security screening and to prevent individuals on watch lists from boarding an aircraft. It
also helps prevent the misidentification of passengers who have names similar to individuals on watch
lists. The TSA has also implemented enhanced security procedures as part of its enhanced, multi-layer
approach to airport security, including physical pat down procedures, at security checkpoints. Such
enhanced security procedures have raised privacy concerns by some air travelers.
Since November 2013, the Company, in conjunction with the TSA and CBP, has participated
in TSA PreCheck™, a pre-screening initiative that allows a select group of low risk passengers the
ability to move through security checkpoints with greater efficiency and ease when traveling. Eligible
passengers may use dedicated screening lanes at certain airports that the Company serves for screening
benefits, which include leaving on shoes, light outerwear, and belts, as well as leaving laptops and
compliant liquids in carryon bags.
The Company also participates in the TSA Known Crewmember®program, which is a risk-
based screening system that enables TSA security officers to positively verify the identity and
employment status of flight-crew members. The program expedites flight crew member access to
sterile areas of airports.
The Company has made significant investments to address the effect of security regulations,
including investments in facilities, equipment, and technology to process Customers, checked baggage,
and cargo efficiently and restore the airport experience; however, the Company is not able to predict
the impact, if any, that various security measures or the lack of TSA resources at certain airports will
have on Passenger revenues and the Company’s costs, either in the short-term or the long-term.
Environmental Regulation
The Company is subject to various federal laws and regulations relating to the protection of the
environment, including the Clean Air Act, the Resource Conservation and Recovery Act, the Clean
Water Act, the Safe Drinking Water Act, and the Comprehensive Environmental Response,
Compensation and Liability Act, as well as state and local laws and regulations. These laws and
regulations govern aircraft drinking water, emissions from operations, and the discharge or disposal of
materials such as jet fuel, chemicals, hazardous waste, and aircraft deicing fluid. Additionally, in
conjunction with airport authorities, other airlines, and state and local environmental regulatory
agencies, the Company, as a normal course of business, undertakes voluntary investigation or
remediation of soil or groundwater contamination at several airport sites. The Company does not
believe that any environmental liability associated with these airport sites will have a material adverse
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