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SWA Presentation
- 7. Cities Daily Departures Established Las Vegas 217 1982 Chicago Midway 215 1985 Phoenix 173 1982 Baltimore/Washington 157 1993 Houston Hobby 133 1971 Dallas (Love Field) 130 1971 Low Angeles (LAX) 115 1982 Denver 113 2006 Oakland 112 1989 San Diego 95 1982
Editor's Notes
- Based out of Dallas Texas, Southwest Airlines is a passenger airline that provides air transpiration throughout the United States. It is currently the 6 th largest U.S. airline by revenue. It operates more than 3,100 flights a day, making it the largest U.S. carrier based on domestic passengers. It currently provides employment for 35, 499 people. Southwest’s Chairmain, President, and CEO is Gary C. Kelly. Kelly has served as the airlines CEO since 2004. Kelly replaced the former woman president of Southwest, Colleen Barret in 2008.
- In terms of revenue, Southwest recorded just over $11 million during the fiscal year Southwest’s net income was $178 million
- Rollin King and Herb Kelleher founded Southwest Airlines in 1971. Southwest Airlines was created as a low-fare commercial airline that made transportation possible between Dallas, Houston, and San Antonio. The company started out with only three Boeing 737 aircrafts. Southwest’s first intrastate flight was on June 18 th , 1971. In 1977 Southwest Airlines began being traded under the symbol “LUV” on the New York Stock Exchange. By 1979, Southwest flew to all of the cities in Texas that they currently provide airfare for. Southwest started service to New Orleans in 1979 and the following year added Albuquerque, Oklahoma City, and Tulsa to it’s possible flight destinations. In 1982, Southwest started service to the West Coast, adding Phoenix, Las Vegas, and San Diego. In 1985 the company spread out to the Midwest by beginning service to Chicago Midway and St. Louis. When Southwest exceeded the billion-dollar revenue mark in 1989 it became a major U.S. airline. Southwest topped the monthly domestic originating passenger rankings for the first time in May 2003.
- Southwest Airlines runs their business out of three business sectors. The passenger sector generates 95.5% of revenue. The freight division is another 1.3%, and the other sector makes up 3.2% of revenue. For the fiscal year of 2008, Southwest increased revenues in 2008 by 11.8%.
- Southwest provides services in the following areas: domestic flights, arrival suites, frequent flier loyalty program, cargo transportation services, contract flight training, online ticket booking services, airport lounge. The average trip length of a Southwest airlines flight is 640 miles with an average duration of one hour and 54 minutes. Southwest aircraft fly an average of 6.25 flights per day, or almost 11 hours and 45 minutes per day. Also Southwest Airlines has one of the most efficient turnaround of planes in the industry, averaging 20 to 30 minuets.
- Southwest provides reliable and low-fare service to 64 cities in 32 states with more than 500 Boeing 737 aircrafts. The top 10 major airports that Southwest serves in order of highest number of departures and nonstop cities served are Las Vegas, Chicago Midway, Phoenix, Baltimore/Washington, Houston Hobby, Dallas (Love Field), Los Angeles (lax), Denver, Oakland, and San Diego.
- The average airfare for a southwest passenger is $112.76. According to the Bureau of Transportation, the average domestic airfare for 2009 costs $315. In addition to it’s low fares, Southwest also is the only airline that has not implemented a baggage fee. In the airline industry, Southwest stands alone in putting customer service first. Continental and Delta, have both raised their checked bag fees to $25 for the first bag and $35 for the second bag. In comparison, Southwest allows each passenger to check two bags for free as long as it adheres to their weight requirements. Southwest also allows two carry ons per passenger. While many other airlines charge for more than one carry on. Southwest however provides complimentary in-flight service. Southwest serves complimentary coffee, juices, and cold drinks on all flights. Southwest also provides Premium Drink coupons for frequent flyers. For a flight less than 600 miles in length, one is served peanuts or pretzels. On longer flights, Southwest provides a select snack box. Southwest still doesn’t charge for making a change to one’s flight.
- In 2008, online bookings reached 78% via southwest.com, compared to approximately 74% in 2007.More than 7 million people subscribe to Southwest’s weekly Click ‘N Save e-mails.In the third quarter of 2009, approximately 78% of Southwest Customers are checking in online or at a kiosk.SWABIZ, Southwest’s free online booking tool that allows business travelers to plan, purchase, and track business travel, increased sales 17% from 2007 to 2008.66% of Fortune 500 Companies are enrolled in SWABIZ as of 2006.Southwest was the first airline to establish a home page on the Internet. Initially, five Employees comprised Southwest’s web site development team, and the site took about nine months to create.In September 2009, southwest.com was the 5th largest travel site and largest airline site in terms of unique visitors (source: Comscore MediaMetrix). Nielsen/Netratings also reported that southwest.com was the largest airline site in terms of unique visitors.The “Southwest Shortcut” feature on southwest.com is the first online tool that helps Customers find the lowest fare based on availability over an entire month.DING!, a downloadable desktop application, available for both PC and MAC users, was introduced in February 2005, to notify Customers of exclusive hot offers,. Southwest was the first airline to implement this type of tool.In addition to flights, Customers are also able to make car, hotel, cruise, and complete vacation package reservations on southwest.com.
- For the 13th year in a row, FORTUNE magazine recognized Southwest Airlines in its annual survey of corporate reputations in 2008. Southwest Airlines is the only airline to make the top 20 list.