Southwest Airlines 2015 Annual Report Download - page 16

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Also unlike most of its competitors, Southwest does not impose additional fees for items such as seat
selection, snacks, curb-side check-in, and telephone reservations. In addition, Southwest allows each
ticketed Customer to check one stroller and one car seat free of charge, in addition to the two free
checked bags.
The Company also continues to promote all of the many other reasons to fly Southwest such as its low
fares, network size, Customer Service, free live television offerings, and its Rapid Rewards frequent
flyer program.
In 2014, the Company launched a new visual expression of its brand by introducing a new Heart
aircraft livery, airport experience, and logo. Aircraft already in the Company’s fleet are scheduled to
receive the newly painted livery within the aircraft’s existing repainting schedule, while new aircraft
will be delivered in the Heart livery. In addition, many of the future airport conversions will be
integrated into existing and upcoming airport improvement projects.
Technology Initiatives
During 2015, the Company continued its commitment to technology improvements to support its
ongoing operations and initiatives.
The Company is in the midst of a multi-year project to completely replace its reservation system. In
2014, the Company launched the Amadeus Altéa reservations solution to support the Company’s
international service. The Company has since begun implementing Amadeus’ Altéa reservations
solution as the Company’s future single reservation system for both domestic and international
reservations. This single reservation system is expected to be implemented in 2017 and is expected to
(i) provide significant incremental revenue opportunities beyond implementation; (ii) allow the
Company to offer product enhancements that will benefit Customers; (iii) give the Company a flexible
and reliable foundation that will allow it to adapt more quickly and efficiently, and better respond to
industry demands; and (iv) reduce the complexities associated with maintaining and operating multiple
reservation systems. In August 2015, the Company achieved one of the first milestones of the single
reservation system when its Customer Support & Services group (“CS&S”) began using Amadeus
Group Manager for international group reservations. This enhanced functionality allows CS&S to book
larger numbers of Passengers on a single reservation via streamlined booking processes.
During 2015, the Company also activated a new recovery optimization tool designed to help the
Company effectively manage its increasingly complex network. The optimizing tool assists with
irregular operations such as out of service events, station reduction, and station shutdown, by
considering many factors including passenger and crew connections, airport curfews, equipment
mismatches, and mission and maintenance requirements.
The Company intends to continue to devote significant technology resources towards, among other
things, (i) the continued development of systems to improve both revenue management and network
optimization capabilities, (ii) the aforementioned replacement of Southwest’s existing domestic
reservation system with the comprehensive Amadeus’ Altéa reservations solution, and (iii) tools to
improve operational management.
Regulation
The airline industry is heavily regulated, especially by the federal government, and there are a
significant number of governmental agencies and legislative bodies that have the ability to directly or
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