Tag Archives: Southwest Airlines

Southwest to start Houston Hobby-Washington Reagan National service on August 4

By Bruce Drum on May 20, 2013 | Leave a Comment

Southwest Airlines (Dallas) announced today that new service between Houston Hobby and Ronald Reagan Washington National Airport will begin on August 4, 2013. The airline initially will operate one daily roundtrip flight between the two cities.

The U.S. Department of Transportation (DOT) recently awarded slot exemptions for this service by selecting Southwest’s application over competing applications by other airlines to serve other cities from Reagan National Airport.

The new route completes a triad of nonstop service options between Houston and the metropolitan airports in Boston, New York, and Washington, DC.

Southwest has served Houston Hobby since June 18, 1971, and has more than 2,800 Houston-based employees and currently operates 153 daily departures from Hobby Airport. Earlier this year, the Houston City Council approved Southwest’s proposal to construct a new five-gate international facility at Hobby Airport. New near-international service on Southwest Airlines is scheduled to begin in 2015.

Copyright Photo: Tony Storck/AirlinersGallery.com. Boeing 737-8H4 WL N8610A (msn 36635) completes its final approach into nearby Baltimore/Washington.

Southwest Airlines:

Posted in: Southwest Airlines | Tagged: 36635, 737, 737800, 7378H4, aviation, Baltimore/Washington, Boeing, Boeing 737, Boeing 737800, BWI, N8610A, reagan national airport, ronald reagan washington, Southwest Airlines, transportation

Southwest Airlines helps to launch the Boeing 737 MAX 7

By Bruce Drum on May 15, 2013 | Leave a Comment

Boeing (Chicago) and Southwest Airlines (Dallas) announced today the launch of the 737 MAX 7, the third member of the 737 MAX family. The carrier and launch customer for the 737 MAX program became the first airline to order the 737 MAX 7, when it converted 30 existing orders for Next-Generation 737s into orders for the 737 MAX 7.

Southwest also exercised options to add five more Next-Generation 737-800s to its fleet. These airplanes, along with the 737 MAX 7s, are part of Southwest’s ongoing effort to improve fuel efficiency and profitability. The 737 MAX 7 supports Southwest’s expanding fleet modernization effort. Southwest is expected to take its first 737 MAX 7 delivery in 2019.

“We are thrilled to announce that Southwest Airlines and Boeing have entered into an agreement for Southwest to be the launch customer for the Boeing MAX 7 series, with deliveries beginning in 2019,” said Gary C. Kelly, Southwest Airlines Chairman of the Board, President, and CEO. “The 737 MAX 7 builds on the strengths of today’s Next-Generation 737-700, incorporating the latest CFM International LEAP-1B engines is expected to reduce fuel burn and CO2 emissions by an additional 12 percent over today’s most fuel-efficient single-aisle airplane.”

The 737 MAX 7 (below) brings the most advanced engine technologies to the world’s best-selling airplane, building on the strengths of today’s Next-Generation 737-700. The 110-ft long airplane incorporates the latest CFM International LEAP-1B engines to deliver improved efficiency with the most reliability and passenger comfort in the single-aisle market. The 737 MAX 7 also will extend the range over today’s 737-700 by approximately 400 nautical miles (741 km).

Image: Boeing.

“Southwest has been a valued partner in the evolution of the 737 program,” said Boeing Commercial Airplanes President and CEO Ray Conner. “We have worked together to launch several models of the 737 including the 737 MAX family in 2011. We are excited to bring the 737 MAX 7 to market with Southwest.”

With the MAX 7 conversions and exercised options for 737-800s, Southwest’s unfilled orders consist of 180 737 MAX airplanes and 137 Next-Generation 737s. The 737 MAX now has orders for 1,315 airplanes.

In other news, Southwest Airlines’ Board of Directors, at its meeting held today, significantly increased the Company’s quarterly dividend to $.04 per share from $.01 per share. Annualized, this amounts to over $100 million. The increase in the quarterly dividend will begin with the 147^th consecutive quarterly dividend declared today to Shareholders of record at the close of business on June 5, 2013 on all shares then issued and outstanding. The dividend will be paid on June 26, 2013. The Board also increased the Company’s existing $1 billion share repurchase authorization to $1.5 billion. Of the remaining share repurchase authorization, an initial $250 million of Southwest common stock will be repurchased under an accelerated stock repurchase program.

Gary C. Kelly, Chairman of the Board, President, and CEO, stated: “Over the past 24 months, we have returned over 20 percent of our operating cash flows, or approximately $770 million, to Shareholders through share repurchases and dividends. I am pleased to announce several actions taken today by our Board that follow through with our commitment to deploy free cash flow¹ to our Shareholders. The Board authorized an increase in our quarterly dividend payment to $.04 per share from $.01 per share. Based on yesterday’s closing stock price of $13.98, this would provide an approximate one percent annual dividend yield to our Shareholders. The Board also increased our existing $1 billion share repurchase authorization to $1.5 billion. To date, $725 million in share repurchases of the $1.5 billion authorization have been completed since August 2011. This means we have the authority to repurchase an additional $775 million of our common stock. We intend to execute an agreement today to repurchase $250 million of our shares under an accelerated stock repurchase program, which, upon implementation, will immediately bring shares back into the Company.

Top Copyright Photo: Brian McDonough/AirlinersGallery.com. With this announcement, Southwest exercised options to add five more Next-Generation 737-800s to its growing fleet. Boeing 737-8H4 WL N8308K (msn 36682) arrives at Washington (Reagan National).

Southwest Airlines:

Posted in: Southwest Airlines, Boeing | Tagged: Boeing, 737, Washington, Southwest Airlines, DCA, Reagan National, Boeing 737, transportation, Boeing 737800, 737800, boeing commercial airplanes, aviation, 7378H4, fleet modernization, N8308K, 36682, Boeing 737 MAX 7

Southwest to start Memphis, Pensacola and Richmond service on November 3

By Bruce Drum on May 7, 2013 | Leave a Comment

Southwest Airlines (Dallas) has announced new service beginning in November to Memphis, Tennessee, Pensacola, Florida., and Richmond, Virginia, completing the planned arrival of Southwest’s Low Fares and Legendary Customer Service in 89 domestic destinations, including all previously served by wholly-owned subsidiary AirTran Airways.

The new nonstop service offered on both carriers comes as Customers are able to purchase itineraries among the two airlines’ combined 97 destinations, including international airports, in one transaction.

Beginning Sunday, November 3, Southwest Airlines will fly nonstop between:

Memphis and Baltimore/Washington, Houston (Hobby), Orlando, Chicago (Midway), and Tampa
Pensacola and Nashville and Houston (Hobby)
Richmond and Orlando (AirTran Airways will continue to operate nonstop service between Richmond and Atlanta.)

AirTran Airways will start service between Memphis and Baltimore/Washington, Houston (Hobby), and Orlando on August 11, 2013.

Also timed with the extension of the flight schedule, AirTran Airways will begin new service in four airports in November.

Beginning Sunday, November 3, AirTran Airways will fly nonstop between:

Oklahoma City and Atlanta and Chicago (Midway)
Hartford/Springfield and Atlanta
Louisville and Atlanta
Norfolk/Virginia Beach and Atlanta

Southwest Airlines and wholly-owned subsidiary AirTran Airways, in addition to providing new destinations, added nonstop routes to and from airports they currently serve.

Additional New Service on Southwest Airlines Beginning November 3:

One daily nonstop flight between Atlanta and New York (LaGuardia)
One daily nonstop flight between Atlanta and West Palm Beach
One daily nonstop flight between Atlanta and St. Louis
One daily nonstop flight between Austin and New Orleans

Shifting from AirTran to Southwest Beginning November 3:

One daily nonstop flight between Atlanta and San Juan, Puerto Rico
One daily nonstop flight between Dayton and Orlando
Two daily nonstop flights between Ft. Lauderdale and Philadelphia
One daily nonstop flight between Ft. Lauderdale and Pittsburgh
Two daily nonstop flights between Milwaukee and Ft. Myers
One daily nonstop flight between Pittsburgh and Ft. Myers

Additional New Service on AirTran Airways Beginning November 3:

One daily nonstop flight between Baltimore/Washington and Kansas City
One daily nonstop flight between Columbus and Tampa Bay
Two daily nonstop flights between Ft. Lauderdale/Hollywood and Jacksonville

Seasonal nonstop service will also begin on November 3 for both Southwest Airlines and AirTran Airways, providing Customers a way to travel to popular Florida destinations.

Seasonal Nonstop Service Beginning November 3 between:

Ft. Lauderdale/Hollywood and Albany, Columbus, Indianapolis, Kansas City, and Raleigh-Durham
Ft. Myers and Hartford/Springfield, Boston Logan, Akron-Canton, and Philadelphia
Orlando and Detroit
Tampa and Norfolk/Virginia Beach
West Palm Beach and Philadelphia

In other news, Southwest has been awarded two slot exemptions (one daily round trip) from the DOT to operate new service from Houston’s William P. Hobby Airport to Reagan National creating the only nonstop service between DCA and HOU.

Southwest Airlines:

Posted in: Southwest Airlines | Tagged: 36990, 737, 737800, 7378H4, aviation, Baltimore/Washington, Boeing, Boeing 737, Boeing 737800, BWI, N8314L, Southwest Airlines

Southwest to revamp its Atlanta schedules to better compete for business traffic against Delta

By Bruce Drum on April 26, 2013 | Leave a Comment

Southwest Airlines (Dallas) is changing its Atlanta operation in order to better compete against Delta Air Lines (Atlanta) for business customers. The airline, according to this Bloomberg report, will have no more than 20 aircraft on the ground at any time at ATL instead of current 30 (including the shrinking AirTran Airways). This will allow the 175 daily flights to be spread more evenly throughout the day according to the airline. The new strategy and schedule will become effective in November.

Read the full report: CLICK HERE

Southwest Airlines:

AirTran Airways:

Posted in: AirTran Airways, Southwest Airlines | Tagged: 27704, 737, 737300, 7373H4, AirTran Airways, aviation, Boeing, Boeing 737, Boeing 737300, Hobby, HOU, Houston, N629SW, Silver One, Southwest Airlines, transportation

Southwest reports 1Q net profit of $59 million, establishes a “No Show” policy

By Bruce Drum on April 25, 2013 | Leave a Comment

Southwest Airlines Company (Southwest Airlines) (Dallas) today reported its first quarter 2013 results. First quarter 2013 net income was $59 million, or $.08 per diluted share, which included $6 million (net) of favorable special items. This compared to net income of $98 million, or $.13 per diluted share, in first quarter 2012, which included $116 million (net) of favorable special items. Excluding special items, first quarter 2013 net income was $53 million, or $.07 per diluted share, compared to a net loss of $18 million, or $.02 loss per diluted share, in first quarter 2012. This exceeded the First Call consensus estimate of $.02 per diluted share. Operating income for first quarter 2013 was $70 million, compared to $22 million in first quarter 2012. Excluding special items, operating income was $112 million for first quarter 2013, compared to $10 million in the same period last year. Additional information regarding special items is included in this release and in the accompanying reconciliation tables.

Gary C. Kelly, Chairman of the Board, President, and Chief Executive Officer, stated, “The significant year-over-year improvement in our first quarter results (excluding special items) was driven by record first quarter revenues and a better-than-expected cost performance. On relatively flat available seat miles year-over-year, total operating revenues of $4.1 billion increased 2.3 percent, or 1.8 percent on a unit basis, compared to first quarter last year. Passenger revenues were boosted significantly by continued progress on the AirTran integration, fleet modernization efforts, and the Rapid Rewards loyalty program. Year-over-year passenger unit revenue trends were relatively stable through February, and while worse than expected, March passenger unit revenues outperformed the domestic industry, on a capacity adjusted basis. Soft revenue trends have continued, thus far, in April, and we expect a year-over-year decline in our April passenger unit revenues. While we are cautious about April trends and the potential effects from government sequestration, recent bookings for May and June have been solid, and lower fuel prices have roughly offset the revenue weakness thus far in April.

“Based on market prices as of April 22^nd, second quarter 2013 economic fuel costs, including fuel taxes, are expected to be in the $3.00 to $3.05 per gallon range, well below second quarter 2012′s $3.22 per gallon, including fuel taxes, and below the original forecast included in our 2013 plan¹. Also, we now have derivative contracts in place for the remainder of the year that support estimated fuel costs per gallon below our 2013 plan. First quarter 2013 economic fuel costs were $3.29 per gallon, which was in line with our expectation, and 4.4 percent lower than first quarter 2012′s all-time high $3.44 per gallon.

“We are pleased with the early results from revenue initiatives implemented in first quarter 2013 and are excited about the incremental benefit expected for future periods. We launched some of our new 2013 ancillary revenue streams, including selling open premium boarding positions at the gate, increasing our EarlyBird Check-In™ charge, and increasing certain other fees.

“We also phased in the ability for our Customers to fly connecting itineraries between the Southwest and AirTran networks, our top priority this year. As of April 14^th, all 97 destinations within the combined networks can be flown on a single itinerary, a key milestone of our AirTran integration. Bookings on these connecting itineraries, thus far, have been strong, giving us further confidence in our plan to achieve $400 million in net, pre-tax, AirTran synergies in 2013 (excluding acquisition and integration costs). With connecting capabilities in place, our ability to optimize the combined networks and operations is enabled, particularly in Atlanta. This is a significant milestone. We are now in a position to evolve Atlanta to a point-to-point operation in fall 2013, similar to our other top ten Southwest cities. This will allow our People to be substantially more productive through scheduling our aircraft, flight crews, and ground staff more constantly throughout the day. Our November schedule (which will open next month) will offer our Atlanta Customers a wider selection of departure times throughout the day, with roughly the same number of daily departures. We expect these changes will grow our local Atlanta traffic.

“We are enthused about planned initiatives for the remainder of the year. Today, we are announcing details of a new No Show policy that will apply to Southwest reservations that include Wanna Get Away^® or DING!^® fares and are made on or after May 10, 2013, for travel on or after September 13, 2013. The policy is intended to alter behavior, encouraging Customers to cancel unused nonrefundable fares prior to a flight’s departure, allowing us to better predict future inventory and reduce the number of empty seats on aircraft. Also, later this quarter, we will implement phase one of our new revenue management system.

“While we continue to optimize our network and maintain a relatively flat fleet in 2013, we are also making excellent progress on our fleet modernization efforts. Thus far this year, we have taken delivery of nine new Boeing 737-800s and two used Boeing 737-700s, retired three older Boeing 737-300s and one Boeing 737-500, and retrofitted more -700s with our new Evolve interior. As of
March 31, 2013, nearly 90 percent of the Southwest -700 fleet had the Evolve interior, and we expect to complete the remainder of the Southwest -700 retrofits in second quarter 2013. Further, all of Southwest’s -800s and -700s are now equipped with WiFi technology.

“We began operating Southwest’s first scheduled service outside of the continental United States on April 14^th, with daily service to San Juan, Puerto Rico, from Orlando and Tampa Bay, Florida. These flights augment AirTran’s existing service between San Juan and Atlanta, Georgia; Baltimore/Washington; and Fort Lauderdale, Florida. Since the beginning of the year, Southwest has also launched service to Branson, Missouri; Charlotte, North Carolina; Flint, Michigan; Portland, Maine; and Rochester, New York. We are excited about our growing network and opportunities ahead. Further, as part of the Dallas Love Field Modernization project, we reached a significant milestone at our hometown airport with the opening of 11 brand new Southwest gates and new concessions on April 16^th. This impressive project is on budget and on track for full completion in second half 2014.

“Our balance sheet and liquidity remain strong with approximately $3.1 billion in cash and short-term investments at March 31, 2013. Earlier this month, we replaced our $800 million revolving credit facility with a new $1 billion five-year revolving credit facility. The $200 million increase enhances our liquidity and financial flexibility. Despite the uncertainties surrounding the impact to travel demand from government sequestration and increased consumer taxes, we remain focused on our 2013 plan to achieve a 15 percent pre-tax return on invested capital. In first quarter, we returned $115 million to our Shareholders through repurchasing $100 million of common stock (approximately 9 million shares) and distributing $15 million in dividends.”

No Show Policy

Southwest is implementing a No Show policy that applies to nonrefundable fares that are not canceled or changed by a Customer 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 prior to scheduled departure, all unused funds on the full itinerary will be lost, and the remaining reservation will be canceled. The policy applies to reservations made or changed on or after Friday, May 10, 2013, for travel on or after Friday, September 13, 2013. This policy does not apply to military fares, senior fares, or travel during certain irregular operations, including severe weather conditions.

The No Show policy will not impact Customers who simply cancel a Wanna Get Away or DING! fare prior to scheduled departure; in this case, Customers may reuse their funds toward future travel on Southwest, without a change fee, as they have always done. Customers who are traveling on a fully refundable itinerary that does not contain a Wanna Get Away or DING! fare will continue to have the option of either requesting a refund or holding funds for future travel.

Financial Results and Outlook

The Company’s total operating revenues in first quarter 2013 were $4.1 billion, compared to $4.0 billion in first quarter 2012. Operating unit revenues increased 1.8 percent from first quarter 2012. Total first quarter 2013 operating expenses of $4.0 billion were comparable to first quarter 2012. The Company incurred $13 million in special charges (before taxes) during the first quarters of 2013 and 2012 associated with the acquisition and integration of AirTran. Cumulative costs associated with the acquisition and integration of AirTran, as of March 31, 2013, totaled $337 million (before profitsharing and taxes). The Company expects total acquisition and integration costs to be no more than $550 million (before profitsharing and taxes). Excluding special items in the first quarters of 2013 and 2012, operating expenses were approximately $4.0 billion in both periods.

First quarter 2013 economic fuel costs, including fuel taxes, decreased 4.4 percent to $3.29 per gallon, compared to $3.44 per gallon in first quarter 2012. The Company now has derivative contracts in place for approximately 95 percent of its estimated fuel consumption for the remainder of the year. As of April 22^nd, the fair market value of the Company’s hedge portfolio through 2017 was a net liability of approximately $151 million, compared to a net asset of $200 million at March 31^st. Additional information regarding the Company’s fuel derivative contracts is included in the accompanying tables.

First quarter 2013 profitsharing expense was $15 million, compared to no profitsharing expense in first quarter last year. Excluding fuel, profitsharing, and special items in both periods, first quarter 2013 unit costs increased 2.8 percent from first quarter 2012, which was better than expected largely due to lower workers’ compensation claims, favorable airport settlements, and lower advertising expense. Based on current cost trends, the Company expects a similar year-over-year increase in its second quarter 2013 unit costs, excluding fuel, profitsharing, and special items in both periods.

Operating income for first quarter 2013 was $70 million, compared to $22 million in first quarter 2012. Excluding special items, operating income was $112 million for first quarter 2013, compared to $10 million in first quarter 2012.

Other income for first quarter 2013 was $24 million, compared to $137 million in first quarter 2012. This $113 million decrease primarily resulted from $46 million in gains recognized in first quarter 2013, compared to $170 million in gains in first quarter 2012. In both periods, these gains primarily resulted from unrealized mark-to-market gains/losses associated with a portion of the Company’s fuel hedging portfolio, which are special items. Excluding these special items, other losses were $5 million in first quarter 2013, compared to $6 million in first quarter 2012, primarily attributable to the premium costs associated with the Company’s fuel derivative contracts. Second quarter 2013 premium costs related to fuel derivative contracts are currently estimated to be approximately $12 million, which is comparable to second quarter 2012. Net interest expense declined to $22 million in first quarter 2013, compared to $33 million in first quarter 2012, primarily as a result of the Company’s repayment of its $385 million 6.5 percent notes in March 2012.

Net cash provided by operations was $983 million, and capital expenditures were $534 million, resulting in $449 million in free cash flow² in first quarter 2013. The Company repaid approximately $164 million in debt and capital lease obligations during first quarter 2013, and intends to repay approximately $149 million in debt and capital lease obligations during the remainder of the year. As of April 23^rd, the Company had approximately $3.2 billion in cash and short-term investments, and a fully available unsecured revolving credit line of $1 billion.

The Company’s return on invested capital (before taxes and excluding special items) was approximately 8 percent for the twelve months ended March 31, 2013. Additional information regarding pre-tax return on invested capital is included in the accompanying reconciliation tables.

Southwest Airlines Awards and Recognitions

Named seventh Most Admired Company in the world by FORTUNE Magazine
Recognized as the top travel brand and fifth overall brand by The Business Journals in the American Brand Excellence Awards
Named Domestic Carrier of the Year by the Airforwarders Association
Named to the Airline of the Year list by the Express Delivery and Logistics Association
Awarded the Air Cargo Excellence Diamond Award by Air Cargo World
Named number one in Customer Service by the 2013 Airline Quality Ratings
Recognized as one of the 2013 100 Best Corporate Citizens by CR Magazine
Awarded the Grassroots Innovation Award for the Free Hobby Campaign by the Public Affairs Council

Copyright Photo: Brian McDonough/AirlinersGallery.com. Boeing 737-7H4 WL N240WN (msn 32503) with “Live in the Vineyard” promotional decal arrives at Baltimore/Washington.

Southwest Airlines:

Posted in: Southwest Airlines | Tagged: 32503, 737, 737700, 7377H4, aviation, Baltimore Washington, Boeing, Boeing 737, Boeing 737700, BWI, fleet modernization, Live in the Vineyard, N240WN, Southwest Airlines, southwest airlines company, transportation

Southwest Airlines launches Pittsburgh-Houston Hobby flights, arrives in San Juan

By Bruce Drum on April 15, 2013 | Leave a Comment

Southwest Airlines (Dallas) has launched a new route from Pittsburgh International Airport (PIT) to William P. Hobby Airport (HOU) in Houston.

The PIT-HOU schedule will include one flight daily. Monday through Friday, it will depart PIT at 11:50 a.m., arriving HOU at 2:00. p.m. Saturdays it will depart PIT at 9:15 a.m. and on Sunday depart PIT at 12:00 p.m. Returning from HOU to PIT: Sunday through Friday, the flight will depart HOU at 1:35 p.m. and arrive at PIT 5:35 p.m. Saturday, it departs HOU at 10:35 a.m. and arrives at PIT 2:29 p.m.

Southwest launched inaugural service to five cities on Sunday, April 14, 2013—the most cities the airline has ever opened in one day. Southwest, America’s largest airline in terms of originating domestic passengers boarded, is expanding its footprint as part of the ongoing integration of its wholly-owned subsidiary, AirTran Airways.

As of April 14, 2013, Southwest Airlines Offers New Nonstop Service between:

Charlotte and Baltimore/Washington, Chicago (Midway), Houston (Hobby), and Orlando
Flint and Baltimore/Washington, Orlando, and Tampa Bay
Portland, Maine and Baltimore/Washington
Rochester and Baltimore/Washington, Chicago (Midway), Orlando, and Tampa Bay
San Juan and Orlando and Tampa Bay.

AirTran ceased service in Charlotte, Flint, Portland (Maine), and Rochester on April 13, 2013. AirTran will continue to offer service between San Juan and Baltimore/Washington, Fort Lauderdale/Hollywood, and Atlanta. Southwest previously announced that the carrier will assume AirTran’s San Juan service to Fort Lauderdale/Hollywood on Sept. 29, 2013.

Video: Southwest finally arrives in San Juan:

Copyright Photo: Tony Storck. Boeing 737-7H4 WL N713SW (msn 27847) in the SeaWorld Adventure Park-Shamu special livery arrives at Baltimore/Washington (BWI).

Southwest Airlines:

Posted in: Southwest Airlines | Tagged: 27847, 737, 737700, 7377H4, aviation, Baltimore/Washington, Boeing, Boeing 737, Boeing 737700, BWI, N713SW, pittsburgh international airport, SeaWorld, SeaWorld Adventure Park, Shamu, Southwest Airlines, transportation, william p hobby airport, william p hobby airport hou

A behind the scenes view of the Southwest Airlines headquarters

By Bruce Drum on April 7, 2013 | Leave a Comment

Southwest Airlines (Dallas) has added a nice pictorial article on their blog that takes the reader on a virtual tour of their headquarters at Love Field in Dallas.

Read the nice article: CLICK HERE

It is always nice to see an airline remembering and embracing its history and culture. Well done WN.

Copyright Photo: Bruce Drum. It all started with these three Boeing 737-200s on June 18, 1971. 737-2H4 N21SW (msn 20345) and the two others are parked at the Southwest hangar at Love Field during a rare down time. In the beginning, the titles were on the rear fuselage and the tail.

Southwest Airlines:

Posted in: Southwest Airlines | Tagged: 20345, 737, 737-200, 737-2H4, Boeing, Boeing 737, Boeing 737-200, DAL, Dallas, Love Field, N21SW, Southwest Airlines, transportation, virtual tour

Golf Southwest Style at 35,000 Feet

By Bruce Drum on March 31, 2013 | Leave a Comment

Southwest Airlines (Dallas) has always had a fun persona, with cabin crews making funny announcement and creating unique “games” to pass the time for passengers and to stir up some fun while flying the airline. The latest is Southwest Golf:

Southwest Airlines:

Posted in: Southwest Airlines | Tagged: aviation, cabin crews, Southwest Airlines, transportation, unique games

Southwest’s new ad campaign

By Bruce Drum on March 22, 2013 | Leave a Comment

Posted in: Southwest Airlines | Tagged: Southwest Airlines

Southwest Airlines and AirTran Airways connect their networks

By Bruce Drum on March 18, 2013 | Leave a Comment

Southwest Airlines (Dallas) announced today that it has successfully completed the connection between the Southwest and AirTran Airways networks. Customers are now able to purchase itineraries to the airlines’ combined 97 destinations, including international, in one transaction. The newly connected itineraries are on sale now via all Southwest and AirTran sales channels for service starting on April 14.

Southwest Airlines and AirTran Airways took the first step in connecting their networks on January 26, 2013, by offering a small number of connected itineraries in five markets. On February 25, 2013, the airline launched connected itineraries in 39 cities.

By connecting the Southwest and AirTran networks, Customers may:

Add one or more AirTran domestic flight segments to a Southwest itinerary, using Southwest booking channels
Book one or more Southwest flight segments connecting to an AirTran itinerary, using AirTran channels
Use all Southwest channels to book an AirTran-only domestic itinerary.
Add an international AirTran segment to a Southwest itinerary within a single reservation, through a Customer-friendly transfer of the transaction to AirTran channels for booking, purchase, and ticketing by AirTran.
Earn currency in either loyalty program no matter which carrier they fly. (The currency a Customer earns is determined by the carrier from which they buy their ticket, even if flying on a shared itinerary.)

As is standard with industry “code share” arrangements, the Marketing Carrier’s (where you buy your ticket) rules and policies apply to reservations and ticketing. The Operating Carrier’s (which airline operates the flight) procedures apply to boarding, seating, and the onboard experience. Southwest is making one exception: any itinerary with a Southwest segment or that is purchased through a Southwest point-of-sale channel will not have bag fees for the first or second checked bag (weight and size restrictions apply.)

Southwest Airlines announced plans to acquire AirTran Airways on September 27, 2010, an acquisition that significantly expanded Southwest Airlines’ low-fare service to more Customers in more domestic markets, creating hundreds of additional low-fare itineraries for the traveling public. Since Southwest Airlines closed the deal to purchase AirTran Airways on May 2, 2011, Southwest and AirTran Employees have worked hard to facilitate a thoughtful and smooth integration process while providing the same high level of Customer Service that Customers have come to expect. To date, Southwest Airlines has welcomed 30 percent of AirTran Employees to the Southwest Family, has converted 11 AirTran Airways 737-700 aircraft to the Southwest paint scheme and interior configuration, and has transitioned five AirTran Airways-served cities into Southwest Airlines operations.

The process of a full integration of the AirTran Airways 737 fleet into the Southwest Airlines fleet (i.e. paint scheme and interior configuration) and transition to a single ticketing system is a large and complex process that is expected to be completed by the end of 2014. Southwest Airlines realized $142 million of net, annualized, pre-tax synergies during 2012, and expects to achieve $400 million in 2013 (excluding acquisition and integration expenses).

Copyright Photo: Michael B. Ing. Southwest Airlines’ Boeing 737-8H4 WL N8309C (msn 36985) completes its final approach into Los Angeles International Airport.

AirTran Airways:

Southwest Airlines:

Posted in: AirTran Airways, Southwest Airlines | Tagged: 36985, 737, 737800, 7378H4, AirTran Airways, aviation, Boeing, Boeing 737, Boeing 737800, LAX, Los Angeles, N8309C, Southwest, Southwest Airlines, transportation

Southwest arrives in Branson, Missouri, replacing AirTran

By Bruce Drum on March 10, 2013 | Leave a Comment

Southwest Airlines (Dallas) yesterday (March 9) officially landed in Branson, Missouri! The Branson Community rolled out the red carpet today as Congressman Billy Long joined the Branson Airport in welcoming Southwest’s first Customers to Branson.

Southwest attributes its entrance into the market to the roots planted by its wholly-owned subsidiary AirTran Airways. AirTran began service to the market in 2009 and currently serves one nonstop flight to Atlanta. Southwest will increase service options for Branson Customers by offering three daily nonstop flights to Dallas Love Field, Houston Hobby, and Chicago Midway, with additional Saturday-only nonstop service to Orlando. The introduction of Southwest’s larger Boeing 737 aircraft to the market means that passenger seat availability will increase, providing Branson Customers greater access to the airline’s vast network.

The Branson Airport celebrated the Southwest inaugural service today with a press conference and a tailgate party to welcome the airline’s first Customers to Branson. Community Members joined the Branson Airport to celebrate the long-anticipated arrival of Southwest Airlines and its Employees to the market. Southwest also showed its passion for the community by joining the Make-A-Wish Foundation of Missouri to help make a child’s wish come true. Southwest and the Southwest region of Make-A-Wish Missouri will help send five-year-old Kyah to San Diego to visit the zoo.

Southwest Airlines:

Posted in: Southwest Airlines | Tagged: aviation, branson airport, branson missouri, Southwest Airlines, transportation

Southwest Airlines to fly to San Juan, Puerto Rico (replacing AirTran)

By Bruce Drum on March 5, 2013 | Leave a Comment

Southwest Airlines (Dallas) and its wholly owned subsidiary AirTran Airways announced an extension of flight schedules for travel through November 1, 2013. In extending both carriers’ bookable inventory, Southwest introduces four new nonstop routes, including the first Southwest service from Des Moines to the West through Las Vegas, and the return of seasonal service in three markets. The carrier also announced new Southwest Airlines service between Fort Lauderdale-Hollywood and San Juan, a conversion from AirTran service in the market, beginning on September 29, 2013. Southwest Airlines begins its initial service in San Juan, Puerto Rico on April 14 with nonstop service between both Tampa Bay and Orlando. AirTran introduces additional seasonal flying to and from Florida.

Southwest’s new markets:

Two daily nonstop flights between Fort Lauderdale-Hollywood and San Juan
One daily nonstop flight between Nashville and Pittsburgh
One daily nonstop flight between Atlanta and San Diego
One daily nonstop flight between Des Moines and Las Vegas
One daily nonstop flight between Jacksonville and Chicago

Southwest’s returning seasonal markets:

One daily nonstop flight between Indianapolis and Orlando
One daily nonstop flight between Jacksonville and Las Vegas
One daily nonstop flight between Orlando and Minneapolis-Saint Paul

AirTran’s new markets:

Seasonal service between Orlando and Houston (Hobby)
Seasonal service between Orlando and New Orleans
Seasonal service between Fort Myers and Columbus
Seasonal service between Fort Lauderdale-Hollywood and Pittsburgh

Top Copyright Photo: Bruce Drum. Southwest Airlines Boeing 737-7H4 WL N944WN (msn 36659) with extra “Free Bags Fly Free” markings arrives on runway 9L at Fort Lauderdale-Hollywood International Airport.

Southwest Airlines:

AirTran Airways:

Bottom Copyright Photo: Tony Storck. The special AirTran schemes are not expected to survive the integration into Southwest. The pictured Boeing 737-7BD WL N354AT (msn 36725) in the special Georgia Aquarium ”Dolphin 1″ scheme is due to become N7724A with Southwest.

Posted in: AirTran Airways, Southwest Airlines | Tagged: 36659, 36725, 737, 737700, 7377BD, 7377H4, AirTran Airways, aviation, Baltimore/Washington, Boeing, Boeing 737, Boeing 737700, Bruce Drum, BWI, Dolphin 1, FLL, fort lauderdale hollywood international airport, Fort Lauderdale/Hollywood, Georgia Aquarium, N354AT, N944WN, Southwest Airlines, transportation

Southwest Airlines Adopt-A-Pilot® volunteer program takes off in schools nationwide inspiring more than 412,000 students since the program’s inception

By Bruce Drum on February 27, 2013 | 1 Comment

Southwest Airlines (Dallas) today announced the official kickoff of its award-winning Adopt-A-Pilot® program where thousands of fifth-grade students “adopt” Southwest Airlines and AirTran Airways Pilots. Through this unique volunteer program, Pilots commit their resources and time from February through May to educate students through aviation-themed activities related to math, science, and other core subjects as well as inspire them to stay in school, set goals, and dream big dreams for the future. Now in its 16^th year, more than 900 Pilots are visiting and inspiring students across the country.

“We hear countless stories from participating Pilots about how much they get back personally by helping students learn and inspiring them to dream big dreams,” said Chuck Magill, Southwest Airlines Vice President of Flight Operations. “We may be an airline, but we also do extraordinary work on the ground. The Adopt-A-Pilot® program is a prime example of our dedication to community and commitment to bringing future leaders unique learning opportunities.”

During the four-week long curriculum, Pilots volunteer their time in participating classrooms and correspond from the “road” via e-mail and postcards. Beyond the program’s core mentorship and curriculum-based activities, participating Pilots often take it one step further and seek mentors for their students.

Created in 1997, Adopt-A-Pilot® started as a community outreach program in just 50 classrooms in Southwest’s destination cities, and has grown to reach more than 412,000 students nationwide. Southwest Airlines developed the program in cooperation with the U.S. Department of Education and the Smithsonian Institution of National Air and Space Museum. National leaders such as Gen. Colin Powell, President Bill Clinton, and First Lady Laura Bush have recognized the excellence that the Adopt-A-Pilot program offers students.

Southwest Airlines:

Posted in: Southwest Airlines | Tagged: aviation, Southwest Airlines, transportation

Southwest Airlines launches “Movies On Demand” for its WiFi aircraft

By Bruce Drum on February 20, 2013 | Leave a Comment

Southwest Airlines (Dallas) has announced that movies on demand are now available on all WiFi-equipped Southwest aircraft for only $5 per movie, per device. The airline also announced an upgrade to their television package. In 2012, Southwest became the only airline in the world to stream live television directly to Customers’ personal devices. Now, in addition to eight channels of live news and sports, Customers can also select on-demand episodes of popular television shows. The upgraded TV package is $5 a day, per device on WiFi-enabled planes.

“Providing a comprehensive and robust inflight connectivity system for our Customers is paramount,” said Dave Ridley, Southwest Airlines’ Senior Vice President Business Development. “Our Flight Attendants are famous for delivering superb Customer Service, and we’re excited to enhance our onboard entertainment offering and take the Customer Experience to new heights.”

The majority of Southwest Customers now have access to WiFi, movies on demand, and the upgraded television offering. As of February 6, all Southwest Boeing 737-700 and 737-800 aircraft were equipped with Row 44 satellite technology that enables these entertainment offerings/services. This milestone represents nearly 75 percent of all Southwest aircraft, which completes the retrofit installations. Moving forward, all new deliveries and AirTran conversions will enter service with Row 44 technology installed.

WiFi service can be purchased for $8 a day, per device including stops and connections. Customers do not need to purchase WiFi in order to access movies or TV.

Accessing the Internet, or watching movies and television is simple. Customers use their WiFi-enabled device onboard any Boeing 737-700 or 737-800 aircraft, connect to “southwestwifi,” and launch their browser to be directed to the inflight entertainment portal. From the portal, Customers are able to select WiFi, movies, or television. The portal also provides free access to a flight tracker, shopping, and games. With Row 44 satellite technology, connectivity continues to work over bodies of water so Customers remain connected all day, no matter where they travel.

Southwest Airlines:

Posted in: Southwest Airlines | Tagged: aviation, Southwest Airlines, technology, transportation

Southwest Airlines to expand its code-share with subsidiary AirTran Airways

By Bruce Drum on February 15, 2013 | Leave a Comment

Southwest Airlines (Dallas) has announced that it is taking the next step in its marriage with subsidiary, AirTran Airways. Customers are now able to purchase a growing number of itineraries between the Southwest and AirTran networks for travel on a single itinerary. Soon, Customers will be able to book flights to any of the airlines’ combined 97 destinations, including international, in one transaction.

“Connecting the networks is a priority in 2013 and a major milestone as we work to combine our two Companies,” said Bob Jordan, Chief Commercial Officer at Southwest Airlines and President of AirTran. “With a connected network, we can offer Customers more itineraries, more destinations, more low fares, and a taste of what’s to come once the integration is complete.”

Southwest Airlines and AirTran Airways took the first step in connecting their networks on January 26, 2013, by offering a small number of shared itineraries in five markets. The initial phase was successful, and the airlines are prepared to launch in 39 cities on February 25, 2013. The airline is on pace to fully connect the networks in April.

By connecting the Southwest and AirTran networks, Customers may:

Add one or more AirTran domestic flight segments to a Southwest itinerary, using Southwest booking channels (southwest.com, 1-800-IFLYSWA, travel agencies, Southwest’s mobile site and apps, and Southwest Airlines ticket counters).
Book one or more Southwest flight segments connecting to an AirTran itinerary, using AirTran channels (airtran.com, 1-800-AIRTRAN, AirTran Airways ticket counters, and travel agencies).
Use all Southwest channels to book an AirTran-only domestic itinerary.
Add an international AirTran segment to a Southwest itinerary within a single reservation, through a Customer-friendly transfer of the transaction to AirTran channels for booking, purchase, and ticketing by AirTran.
Earn currency in either loyalty program no matter which carrier they fly. (The currency a Customer earns is determined by the carrier from which they buy their ticket, even if flying on a shared itinerary.)

As is standard with industry “code share” arrangements, the Marketing Carrier’s rules and policies apply to reservations and ticketing. The Operating Carrier’s procedures apply to boarding, seating, and the onboard experience. Southwest is making one exception: any itinerary with a Southwest segment or that is purchased through a Southwest point-of-sale channel will not have bag fees for the first or second checked bag (weight and size restrictions apply).

Southwest Airlines announced plans to acquire AirTran Airways on September 27, 2010, an acquisition that significantly expanded Southwest Airlines’ low-fare service to more Customers in more domestic markets, creating hundreds of additional low-fare itineraries for the traveling public. Since Southwest Airlines closed the deal to purchase AirTran Airways on May 2, 2011, Southwest and AirTran Employees have worked hard to guarantee a thoughtful and smooth integration process while providing the same high level of Customer Service that Customers have come to expect. To date, Southwest Airlines has welcomed 29 percent of AirTran Employees to the Southwest Family, has converted 11 AirTran Airways 737-700 aircraft to the Southwest paint scheme and interior configuration, and has transitioned five AirTran Airways-served cities into Southwest Airlines operations.

Copyright Photo: Tony Storck. All visuals for AirTran Airways, including aircraft, will be gone by the end of 2014. The Boeing 717 fleet will be leaving sooner for Delta Air Lines. Southwest will not operate or integrate the Boeing 717s. Therefore many of the special color schemes on the 717s will be retired when the aircraft are removed from the AirTran fleet. The pictured ex-TWA 717-231 N925AT (msn 55079, ex N412TW) displays the special “The Wizarding World of Harry Potter” color scheme at Baltimore/Washington.

Southwest Airlines:

AirTran Airways:

Posted in: AirTran Airways, Southwest Airlines | Tagged: 55079, 717, 717200, 717231, AirTran Airways, aviation, Baltimore/Washington, Boeing, Boeing 717, Boeing 717200, BWI, N925AT, Southwest Airlines, The Wizarding World of Harry Potter, transportation

Grand Rapids to join the Southwest Airlines network on August 11

By Bruce Drum on February 4, 2013 | Leave a Comment

Southwest Airlines (Dallas) announced today that Grand Rapids, Michigan is the next AirTran Airways (Dallas) city to be converted to Southwest service. Those flights from Grand Rapids to Baltimore/Washington, Denver, Orlando, and Saint Louis will begin on August 11, 2013. AirTran service in Grand Rapids will end the previous day, August 10, 2013.

From Gerald R. Ford International Airport (GRR), fly Southwest Airlines Nonstop to:

(BWI) Baltimore/Washington International Thurgood Marshall Airport
(DEN) Denver International Airport
(MCO) Orlando International Airport
(STL) Lambert-St. Louis International Airport

Additionally, AirTran expands operations in Memphis with new nonstop flights between Memphis and Chicago (Midway), Baltimore/Washington, and Orlando, beginning on August 11, 2013. In Memphis, AirTran currently offers five daily nonstop flights to Atlanta.

Southwest also will begin nonstop service between Flint, Michigan and Las Vegas starting on August 11, 2013. Bishop International Airport (FNT) in Flint is currently served by AirTran Airways and will convert to Southwest Airlines service on April 14, 2013. Inaugural service from Flint will also include nonstop service to Baltimore/Washington, Orlando, and Tampa Bay.

Top Copyright Photo: Eddie Maloney. Boeing 737-3H4 N609SW (msn 27929) in the California One motif lands at Las Vegas.

Southwest Airlines:

AirTran Airways:

Bottom Copyright Photo: Bruce Drum. Southwest Airlines is also phasing out the AirTran Airways’ Boeing 717 fleet. The 717s will gradually migrate to Delta Air Lines. Boeing 717-2BD N946AT (msn 55009) painted in the special livery of the world champion Baltimore Ravens of the National Football League (NFL) climbs away from the runway at Fort Lauderdale-Hollywood International Airport (FLL).

Posted in: AirTran Airways, Southwest Airlines | Tagged: 27929, 55009, 717, 717200, 7172BD, 737, 737300, 7373H4, AirTran Airways, aviation, Baltimore Ravens, Boeing, Boeing 717, Boeing 717200, Boeing 737, Boeing 737300, California One, FLL, Fort Lauderdale/Hollywood, lambert st louis international airport, LAS, Las Vegas, N609SW, N946AT, Southwest Airlines, transportation

Southwest Airlines achieves its 40th consecutive year of profitability

By Bruce Drum on January 24, 2013 | Leave a Comment

Southwest Airlines Company (Southwest Airlines and AirTran Airways) (Dallas) today reported its fourth quarter and full year 2012 results. Fourth quarter 2012 net income was $78 million, or $.11 per diluted share, which included $13 million (net) of favorable special items. This compared to net income of $152 million, or $.20 per diluted share, in fourth quarter 2011, which included $86 million (net) of favorable special items. Excluding special items, fourth quarter 2012 net income was $65 million, or $.09 per diluted share, which was comparable to fourth quarter 2011. This exceeded the First Call consensus estimate of $.08 per diluted share. Additional information regarding special items is included in this release and in the accompanying reconciliation tables.

For the full year of 2012, net income was $421 million, or $.56 per diluted share, which included $4 million (net) of favorable special items. This compared to $178 million, or $.23 per diluted share, in full year 2011, which included $152 million (net) of unfavorable special items. Excluding special items, full year 2012 net income was $417 million, or $.56 per diluted share, compared to net income of $330 million, or $.43 per diluted share, for full year 2011. Operating income for full year 2012 was $623 million, compared to $693 million for full year 2011. Excluding special items, operating income for full year 2012 was $838 million, which was comparable to full year 2011.

Gary C. Kelly, Chairman of the Board, President, and Chief Executive Officer, stated, “2012 was a year of tremendous progress. Our profits (excluding special items) of $417 million grew 26 percent as compared to 2011 and represented our 40^th consecutive year of profitability. Without a doubt, this is a remarkable feat and a record unmatched in the airline industry. These solid earnings were achieved despite significant efforts and costs related to critical strategic initiatives. I expect these initiatives to produce substantial returns over the next several years. For 2012, these initiatives contributed to the 49 percent surge in our cash flow from operations to $2.1 billion. We ended the year with fourth quarter profits (excluding special items) of $65 million, which was in line with our year ago performance.

“I was very pleased with our operational performance for the year and our Customer Service delivery. Both were exceptional, especially considering the amount of work involved with our initiatives. I am deeply grateful to all of our People for their extraordinary efforts and a truly remarkable year.

“Our fourth quarter 2012 operating revenues were a fourth quarter record $4.2 billion, bringing full year 2012 operating revenues to more than $17 billion. Our strong fourth quarter 2012 operating revenue performance was driven by record yields, continued high load factors, and an impressive freight revenue performance. As with the full year profits, these strong revenues were achieved despite the transitional state of the AirTran route network. While there was much change in 2012, significant optimization efforts are planned in 2013 for the AirTran network. As we enter 2013, bookings and revenue trends, thus far, suggest a year-over-year improvement in January 2013 passenger unit revenues in the two to three percent range. While the effect of U.S. tax increases on the domestic economy remains uncertain, bookings for the remainder of first quarter, thus far, are strong.

“Our economic fuel costs, including fuel taxes, were $3.32 per gallon for fourth quarter 2012, and $3.28 per gallon for full year 2012, compared to $3.29 per gallon and $3.19 per gallon for the respective year-ago periods. Based on market prices as of January 18^th, our first quarter 2013 economic fuel costs, including fuel taxes, are estimated to be approximately $3.30 per gallon, as compared to $3.44 per gallon for first quarter 2012. While current fuel price levels are very high, the year-over-year decline estimated for first quarter 2013 economic fuel costs is an encouraging trend.

“As expected, our fourth quarter 2012 unit costs, excluding fuel, profitsharing, and special items, increased 5.8 percent, as compared to fourth quarter 2011. While we expect a similar trend in first quarter 2013, year-over-year unit cost inflation, excluding fuel, profitsharing, and special items, is expected to significantly ease for full year 2013 as we complete our Evolve interior cabin retrofits and begin to more fully realize benefits from our fleet modernization efforts.

“While we continue to transform our Company with a bold five-year strategic plan that began in 2011, we remain committed to the pillars of our success—outstanding Customer Service; safe, reliable, and efficient operations; and low costs. We are on track with our plan to fully integrate AirTran into Southwest Airlines by the end of 2014. We realized $142 million of net, annualized, pre-tax synergies during 2012, and we expect to achieve our $400 million target in 2013 (excluding acquisition and integration expenses). This month, we are on track to begin testing connecting itineraries between the Southwest and AirTran networks in a handful of markets, with significant offerings planned in February and more in March. Once fully implemented in April, we expect the connected networks to contribute incremental revenue in 2013 and provide significant opportunities to optimize the combined network. Our fleet modernization initiatives are on schedule with 259 Southwest 737-700 aircraft retrofitted with our new 143-seat Evolve cabin. We expect to have all 372 of Southwest’s 737-700 aircraft retrofitted with Evolve by June and 78 of our 737-300 aircraft retrofitted by the end of 2013. We currently have 34 737-800s in our fleet with plans to grow to 54 this year and 78 next year. We have equipped 400 Southwest aircraft with Row 44 WiFi technology, providing our Customers access to satellite-based WiFi and live television. We intend to significantly grow our inflight entertainment offerings in 2013. We are thrilled with the Customer feedback and incremental revenue generated from our All-New Rapid Rewards frequent flyer program that was installed in 2011. Our international reservation system implementation is on track for 2014, and we continue to make great progress on implementing our new revenue management program in 2013. Also, we’ve announced new 2013 revenue streams: selling open A1 through A15 premium boarding positions and a new service charge for reuse of funds associated with restricted tickets that are not canceled (or changed) prior to departure. Collectively, we expect our strategic initiatives and new revenue streams to contribute the majority of the planned $1.1 billion year-over-year revenue increase in 2013. I am enthused about our 2013 plan and believe our transformation efforts will make us better, stronger, and more competitive.

“Our financial position remains strong with $3 billion in cash and short term investments. We generated $716 million in free cash flow* during 2012, and we expect healthy free cash flow* in 2013. We remain focused on enhancing Shareholder value through capital efficiency and our targeted 15 percent pretax return on invested capital.

“We believe in our strategic plan. And, the outstanding efforts, commitment, and dedication of our People exhibited in 2012 gives me confidence in our ability to successfully execute this plan. The year 2012 was a year of dramatic accomplishments that I believe positions us to be stronger than ever.”

Notable 2012 accomplishments for Southwest Airlines include:

40^th consecutive year of profitability
83.1 percent Ontime Performance
Recognized with numerous awards and recognitions, most notably being named Customer Service Champions by JD Powers, included in the 2012 Customer Service Hall of Fame by MSN Money, and named one of America’s Top 500 Companies by Barrons
Received Single Operating Certificate in March 2012; ten months after AirTran acquisition close
Launched 737-800 operations in March (34 aircraft currently in service)
Converted 259 Southwest 737-700s to new 143-seat Evolve configuration (including progress thus far in 2013)
Continued equipping aircraft with satellite-based WiFi technology, reaching the 400^thinstallation in January 2013 (including AirTran conversions)
Earned flag status and began selling service to Puerto Rico (to be launched April 2013)
Launched Southwest service to Atlanta, Akron-Canton, and Dayton
Received slots at Ronald Reagan Washington National Airport and began service
Launched AirTran service to Austin, Orange County, Mexico City, and Cabo San Lucas
Discontinued AirTran service to 14 airports
Resolved all seniority list integrations
Converted 11 AirTran 737-700s to the Southwest livery with Evolve configuration
Converted four AirTran stations to Southwest: Seattle, Dulles, Des Moines, and Key West
Announced plans to convert seven more AirTran stations in 2013: Phoenix, Branson, Charlotte, Flint, Portland (Maine), Rochester, and Wichita
Converted 26 percent of the AirTran workforce to Southwest
Harmonized all Customer policies between Southwest & AirTran
Opened new Pilot and Flight Attendant crew bases at Denver International Airport
Selected Amadeus for International Reservation system for 2014 implementation
Completed 717 sublease/lease deal with Delta
Received Houston City Council approval for Hobby international terminal
Deferred $1 billion in capital spending
Returned $422 million to Shareholders through repurchasing $400 million of common stock (approximately 46 million shares) and distributing $22 million in dividends

Financial Results and Outlook

AirTran Airways, Inc. became a wholly-owned subsidiary of the Company on May 2, 2011. Results discussed in this release and provided in the accompanying unaudited Condensed Consolidated Financial Statements and Comparative Consolidated Operating Statistics include the results of operations and cash flows for AirTran beginning May 2, 2011, including the impact of purchase accounting. Full year 2011 results do not include AirTran’s results prior to the acquisition date. However, the Company believes the analysis of specified financial results on a “combined basis” provides more meaningful year-over-year comparability. Full year 2011 financial information presented on a “combined basis” is the sum of the historical financial results of the Company and AirTran for periods prior to the acquisition date, but includes the impact of purchase accounting beginning May 2, 2011. Supplemental financial information presented on a “combined basis” and the accompanying reconciliations are included in this release.

The Company’s total operating revenues in fourth quarter 2012 increased 1.6 percent to $4.2 billion, compared to $4.1 billion in fourth quarter 2011. Operating unit revenues increased 1.9 percent from fourth quarter 2011. Based on current bookings and revenue trends, the Company expects a solid year-over-year increase in its first quarter 2013 unit revenues.

Total fourth quarter 2012 operating expenses were $4.1 billion, compared to $4.0 billion in fourth quarter 2011. Excluding special items in both periods, fourth quarter 2012 operating expenses increased 2.4 percent from fourth quarter 2011.

Fourth quarter 2012 economic fuel costs, including fuel taxes, were $3.32 per gallon, including $.09 per gallon in unfavorable cash settlements for fuel derivative contracts, compared to $3.29 per gallon in fourth quarter 2011, including $.12 per gallon in unfavorable cash settlements for fuel derivative contracts. Based on market prices as of January 18, 2013, the Company expects first quarter 2013 economic fuel costs, including fuel taxes, to be approximately $3.30 per gallon, including $.05 per gallon in unfavorable cash settlements for fuel derivative contracts. First quarter 2013 premium costs related to fuel derivative contracts, recorded in Other (gains) losses, are currently estimated to be approximately $5 million, compared to premium costs of $6 million in first quarter 2012. As of January 18, 2013, the fair market value of the Company’s hedge portfolio through 2017 was a net asset of approximately $216 million, compared to a net asset of approximately $220 million at December 31, 2012. Additional information regarding the Company’s fuel derivative contracts is included in the accompanying tables.

Fourth quarter 2012 profitsharing expense was $19 million, which was comparable to fourth quarter 2011. Excluding fuel, profitsharing, and special items in both periods, fourth quarter 2012 unit costs increased 5.8 percent from fourth quarter 2011. Based on current cost trends, the Company expects a similar year-over-year increase in its first quarter 2013 unit costs, excluding fuel, profitsharing and special items in both periods.

Operating income for fourth quarter 2012 was $91 million, compared to $147 million in fourth quarter 2011. Excluding special items in both periods, operating income was $136 million for fourth quarter 2012, compared to $167 million in fourth quarter 2011. The Company incurred $14 million in special charges (before taxes) during fourth quarter 2012 associated with the acquisition and integration of AirTran.

Other income for fourth quarter 2012 was $34 million, compared to $108 million in fourth quarter 2011. This $74 million decrease primarily resulted from $62 million in gains recognized in fourth quarter 2012, compared to $153 million in fourth quarter 2011. In both periods, these gains primarily resulted from unrealized mark to market gains/losses associated with a portion of the Company’s fuel hedging portfolio, which are special items. Excluding these special items, other losses were $3 million in fourth quarter 2012, compared to $15 million in fourth quarter 2011, primarily attributable to the premium costs associated with the Company’s fuel derivative contracts. Net interest expense declined to $28 million in fourth quarter 2012, compared to $45 million in fourth quarter 2011, primarily as a result of the Company’s repayment of its $400 million notes in December 2011 and the redemption of its $385 million notes in March 2012.

Total operating revenues for full year 2012 increased 9.1 percent to $17.1 billion, while total operating expenses increased 10.0 percent to $16.5 billion, resulting in operating income of $623 million, compared to $693 million for full year 2011. For full year 2012, special charges (before taxes) associated with the acquisition and integration of AirTran were $183 million, bringing cumulative costs incurred to $324 million (before profitsharing and taxes). The Company expects total acquisition and integration costs will be no more than $550 million. Excluding special items, operating income was $838 million for full year 2012, compared to $839 million for full year 2011. Excluding special items and compared to combined results for the same period in 2011, total operating revenues for full year 2012 increased 3.0 percent, while total operating expenses increased 3.1 percent, resulting in a 0.5 percent increase in operating income for full year 2012.

The Company’s return on invested capital (before taxes and excluding special items) was approximately 7 percent for the year ended December 31, 2012. Additional information regarding pretax return on invested capital is included in the accompanying reconciliation tables.

Net cash provided by operations for full year 2012 was $2.1 billion, and capital expenditures were $1.3 billion. As a result, the Company generated $716 million in free cash flow* in 2012. During 2012, the Company paid $22 million in dividends, which was a 57 percent increase over the year ago period. The Company also repurchased approximately 46 million shares of common stock for approximately $400 million. The Company repaid $578 million in debt and capital lease obligations during 2012, and intends to repay approximately $205 million in debt and capital lease obligations in 2013, including approximately $70 million in first quarter 2013. As of January 23^rd, the Company had approximately $3 billion in cash and short-term investments, and a fully available unsecured revolving credit line of $800 million.

Southwest Airlines Fourth Quarter 2012 Awards and Recognitions

Recognized as one of the 2012 Green Rankings Top 500 US Companies by Newsweek
Named to G.I. Job’s 2013 Top 100 Military Friendly Employers
Ranked first in America’s Happiest Airlines for Holiday Travel by Forbes for the third consecutive year
Recognized with the Employees Choice Awards Best Place to Work 2013 by Glassdoor.com
Named one of the Five Most Likeable Companies of 2012 by Likeable Media
Named one of the National Conference on Citizenship’s The Civic 50 for use of time, talent, and resources in civic engagement

Copyright Photo: Brian McDonough. Boeing 737-8H4 WL N8313F (msn 38810) prepares to touch down at Baltimore/Washington. The airline currently operates 34 737-800s with plans to grow to the 737-800 fleet to 54 this year and 78 next year.

Southwest Airlines:

AirTran Airways:

Posted in: AirTran Airways, Southwest Airlines | Tagged: 38810, 737, 737800, 7378H4, AirTran Airways, aviation, Baltimore/Washington, Boeing, Boeing 737, Boeing 737800, BWI, N8313F, Southwest, Southwest Airlines, southwest airlines company, transportation

Southwest Airlines and Row 44 reach the 400 aircraft mark, adds extra flights to New Orleans for the Super Bowl

By Bruce Drum on January 22, 2013 | Leave a Comment

Southwest Airlines (Dallas) and Row 44 announced today that the Row 44 inflight entertainment and connectivity service, which includes high-speed Internet, shopping, destination services, and real-time flight map with updates, has been installed on 400 Southwest aircraft. In addition, Southwest offers Row 44′s live television service across all Wi-Fi equipped aircraft.

Now available on Southwest aircraft installed with Wi-Fi, the live television service features nine channels of live news and sports, which includes NBC Sports, NFL Network, NFL Red Zone, MLB, MSNBC, CNBC, Fox News, Fox Business News and FOX-NYC. Passengers with Wi-Fi-enabled devices can stream the live television service. Importantly, the Row 44 live television service utilizes a distinct band transmitted to the aircraft, and therefore does not interfere with Internet connectivity.

In other news, Southwest and subsidiary AirTran Airways are adding extra flights to New Orleans for the Super Bowl on February 3, 2013.

Southwest Airlines Additional Service on Jan. 31:

Two daily nonstops from San Francisco to New Orleans.
Two daily nonstops from Baltimore/Washington to New Orleans for a total of four daily nonstop departures.

AirTran Airways Additional Service on Jan. 31:

One daily nonstop from Atlanta to New Orleans for a total of five daily nonstop departures.

Southwest Airlines Additional Service on Feb. 4:

Two daily nonstops from New Orleans to San Francisco.

The airlines added other flights, but due to high demand, the service is already sold out.

Southwest Airlines Additional Service on Feb 4:

Two daily nonstops from New Orleans to Baltimore/Washington for a total of four daily nonstop departures (sold out).

AirTran Airways Additional Service on Feb 4:

Two daily nonstop departures from New Orleans to Atlanta for a total of six daily nonstop departures (sold out).

In addition, Southwest Airlines’ Bay Area Customers can fly existing service from Oakland to New Orleans with seven daily direct flight options.

Southwest Airlines:

Posted in: Southwest Airlines | Tagged: 737, 737700, 7377H4, AirTran Airways, aviation, Baltimore/Washington, Boeing, Boeing 737, Boeing 737700, BWI, inflight entertainment, N907WN, Southwest Airlines, transportation

Southwest to charge $40 to upgrade to an earlier “A” boarding pass on the day of flight

By Bruce Drum on January 21, 2013 | Leave a Comment

Southwest Airlines (Dallas) customers LUV the coveted “A” boarding group according to the airline. Now Southwest will offer an additional option to upgrade their position with the open seating at the board gate.

The airline continues:

Now they have one more way to be among the first to board. Beginning today, Southwest Airlines will offer customers the opportunity to purchase one of the earliest boarding positions at the gate for $40 per flight, when available.

This new boarding option will only be offered at the gate on the day of travel, beginning 45 minutes before the flight departs. Customers will hear an announcement in the gate area and will be able to purchase an available boarding position via credit card from a Customer Service Agent. Customers will only have the opportunity to purchase these positions if available. The airline successfully tested this new boarding option in San Diego last month, and received positive feedback.

Copyright Photo: Ton Jochems. Boeing 737-8H4 N8326F (msn 35969) touches down at the popular destination of Las Vegas, Nevada.

Southwest Airlines:

Posted in: Southwest Airlines | Tagged: 35969, 737, 737800, 7378H4, aviation, Boeing, Boeing 737, Boeing 737800, LAS, Las Vegas, N8326F, Southwest Airlines, transportation

Southwest Airlines’ Boeing 737-7H4 N718SW exits the taxiway at Islip, Long Island

By Bruce Drum on December 28, 2012 | Leave a Comment

Southwest Airlines (Dallas) had a minor incident yesterday (December 27) at Islip, Long Island that attracted some media interest. Boeing 737-7H4 N718SW (msn 27852) exited the taxiway at Islip while taxiing and the nose wheel got mired in the soft dirt. The airline issued the following statement:

This morning (December 27), flight WN 4695 leaving Islip for Tampa exited the taxiway during taxi from the gate. The aircraft had 129 customers on board, and there were no reported injuries. The customers deplaned the aircraft and were bussed back to the terminal where a replacement aircraft will take them to their original destination. Maintenance crews are working to move the aircraft and evaluate it for any damage.

Read the media coverage (with photos) from Channel 10 News: CLICK HERE

Southwest Airlines:

Posted in: Southwest Airlines | Tagged: aviation, Southwest Airlines, transportation

AirTran Airways to fly Denver-Los Cabos starting on March 10

By Bruce Drum on December 27, 2012 | Leave a Comment

Southwest Airlines (Dallas) and its wholly owned subsidiary, AirTran Airways, have announced new international flights between Denver International Airport (DEN) and Los Cabos International Airport (SJD) in Baja California, Mexico.

AirTran’s daily service on the new route begins on March 10, 2013.

AirTran Airways also currently serves SJD Los Cabos International Airport with daily service to/from Orange County (increasing to twice-daily as of June 2, 2013) and has flights between other destinations in the US and both Cancun and Mexico City.

Southwest Airlines began service to Denver on January 3, 2006, with 13 daily departures to three destinations. The airline currently operates 163 daily flights to 54 destinations from Denver. Southwest recently demonstrated its LUV for the state of Colorado by dedicating Colorado One, a specialty aircraft painted with the colors of the Colorado state flag (see below).

Top Copyright Photo: Michael B. Ing. Boeing 737-7BD N290AT (msn 33925) of AirTran Airways completes its final approach into Los Angeles.

AirTran Airways:

Southwest Airlines:

Bottom Copyright Photo (click on the photos for the larger view): Mark Durbin. Colorado One in the form of Boeing 737-7H4 N230WN (msn 34592), taxies at San Francisco.

Posted in: AirTran Airways, Southwest Airlines | Tagged: 33925, 34592, 737, 737700, 7377BD, 7377H4, AirTran Airways, aviation, baja california mexico, Boeing, Boeing 737, Boeing 737700, Colorado One, denver international airport, LAX, Los Angeles, N230WN, N290AT, San Francisco, SFO, Southwest, Southwest Airlines, transportation

Southwest to add additional Florida service for winter-spring season

By Bruce Drum on December 12, 2012 | Leave a Comment

Southwest Airlines (Dallas) is adding new seasonal nonstops in several Florida markets.

Effective from February 15 to April 13, 2013 the airline will be bringing back daily roundtrip nonstops between Orlando and Oklahoma City (last flown since 2008!). WN is also adding new nonstop service between Orlando and Little Rock. Southwest will also be adding a third daily nonstop roundtrip between Tampa and both Columbus, Ohio and St. Louis.

From March 10 through April 13, 2013 WN will be adding a second flight between Louisville and Tampa and between Kansas City and Fort Lauderdale/Hollywood. The airline will also add a fourth daily roundtrip between St. Louis and Tampa.

Southwest Airlines:

Posted in: Southwest Airlines | Tagged: 23938, 737, 737300, 737334, aviation, Boeing, Boeing 737, Boeing 737300, LAX, N334SW, SeaWorld, SeaWorld Adventure Parks, Shamu, Southwest Airlines, transportation

Southwest Airlines files for DCA slot exemptions for Houston Hobby-Washington Reagan National authority

By Bruce Drum on December 7, 2012 | Leave a Comment

Southwest Airlines (Dallas) today announced it has filed an application with the U.S. Department of Transportation (DOT) for slot exemptions that would allow Southwest to offer nonstop service between Ronald Reagan Washington National Airport (DCA) and William P. Hobby Airport (HOU). The proposed service is possible due to Spirit Airlines’ discontinued use of the slot exemptions, which are available for use inside Washington National’s traditional 1,250 mile service perimeter.

Southwest’s application points out that current average fares for nonstop service between Houston and Washington National are more than 60 percent higher than Southwest’s average nonstop fare between Houston and Baltimore/Washington International (BWI), a similar distance. Southwest projects that its proposed HOU-DCA service would attract tens of thousands of new Passengers and save consumers millions of dollars annually.

As part of the effort to bring a low-fare alternative to the HOU-DCA market, Southwest is unveiling www.Southwest.com/HOU-DCA.

A decision by the DOT is expected in the first quarter of 2013. Southwest is prepared to begin service this spring if awarded the slots.

Southwest has served Houston since June 18, 1971, and currently has more than 2,700 HOU Employees serving 143 flights every day. Earlier this year, the Houston City Council approved the carrier’s proposal to construct a new five-gate international facility at Hobby Airport. This new service is scheduled to begin in 2015.

Copyright Photo: Brian McDonough. Boeing 737-7H4 N281WN (msn 36528) with special 500th Boeing 737 Aircraft markings arrives at Washington (Dulles).

Southwest Airlines:

Posted in: Southwest Airlines | Tagged: 36528, 500th Boeing 737 Aircraft, 737, 737700, 7377H4, aviation, Boeing, Boeing 737, Boeing 737700, Dulles, IAD, N281WN, ronald reagan washington, ronald reagan washington national airport dca, Southwest Airlines, transportation, Washington, william p hobby airport

Southwest to convert Wichita to a Southwest city on June 2

By Bruce Drum on November 19, 2012 | Leave a Comment

Southwest Airlines (Dallas) on June 2, 2013 will convert service at Wichita, Kansas from AirTran Airways to a Southwest city. At Wichita’s Mid-Continent airport, WN will substitute three AirTran nonstop flights between Wichita and Atlanta with two Southwest nonstops between Wichita and both Dallas/Love and Chicago/Midway, and daily Southwest nonstop service between Wichita and Las Vegas. This will give Southwest five daily departures, with direct and connecting service to another 70 Southwest cities across America.

Integration between Southwest and AirTran also continues in the Caribbean. On the same day WN will convert existing AirTran nonstop service between Baltimore/Washington and San Juan, Puerto Rico to Southwest Airlines service, and will add a fourth daily roundtrip between San Juan and Orlando. All of Southwest’s service to San Juan utilizes Boeing 737-800 aircraft complete with Boeing’s Sky Interior.

According to the airline, Southwest will also add two daily nonstop roundtrips between Houston/Hobby and New York’s LaGuardia Airport. WN will also add new nonstop service between Chicago/Midway and Tulsa. Other nonstop markets that will seasonally return will be daily nonstops between Seattle/Tacoma and Atlanta, Nashville, Houston/Hobby, and Kansas City, between Austin and Portland OR, and between Las Vegas and Manchester. Southwest will end nonstop service in five markets—Albuquerque-Tucson, Oakland-Reno, Little Rock-St. Louis, and between Birmingham and both Jacksonville and New Orleans. In addition, WN will eliminate seasonal nonstops between Hartford and Ft. Myers, weekend-only nonstops in the Norfolk-Tampa and Providence-Ft. Myers markets, and will seasonally shift Southwest nonstop service between Ft. Lauderdale/Hollywood and both Raleigh/Durham and Milwaukee to AirTran. WN will also reduce frequency in 40 roundtrip markets and increase service in 49 others, winding up with an average of 3,382 departures each weekday—which represents an overall increase in roughly 18 midweek departures per day.

Southwest Airlines:

Posted in: Southwest Airlines | Tagged: 36992, 737, 737800, 7378H4, AirTran Airways, BFI, Boeing, Boeing 737, boeing 737 800 aircraft, Boeing 737-800, Boeing 737800, Boeing Field, laguardia airport, mid continent airport, N8317M, Seattle, Southwest Airlines, transportation

Southwest Airlines arrives in Key West

By Bruce Drum on November 4, 2012 | Leave a Comment

Southwest Airlines (Dallas) has officially landed at Key West International Airport (EYW), extending the airline’s Florida presence to the southernmost point of the country in the Florida Keys. Key West, a popular tourist destination, becomes the eighth city the airline serves in the state of Florida and the 78^th city added to the airline’s vast route map.

Southwest attributes its entrance into the market, beginning today, to the roots planted by its wholly-owned subsidiary AirTran Airways. Southwest will take over AirTran’s two daily nonstop departures to Orlando International Airport (MCO) and Tampa Bay International Airport (TPA). In addition to the two daily nonstop flights, Southwest will introduce an entirely new market with daily nonstop service to Louis Armstrong New Orleans International Airport beginning on March 9, 2013. With this nonstop service, Key West Customers will have access to Southwest’s extensive network with additional connecting service to more than 75 destinations nationwide.

Southwest Airlines:

Posted in: Southwest Airlines | Tagged: 36660, 737, 737700, 7377H4, Baltimore/Washington, Boeing, Boeing 737, Boeing 737700, BWI, Florida One, key west international airport, louis armstrong new orleans international airport, N945WN, orlando international airport, orlando international airport mco, Southwest Airlines, transportation

Southwest Airlines to push south to San Juan, Puerto Rico on April 14

By Bruce Drum on November 2, 2012 | Leave a Comment

Southwest Airlines (Dallas) now offers for sale nonstop service from San Juan, Puerto Rico, to Orlando and Tampa, for travel beginning on Sunday, April 14, 2013. Beginning in April, Southwest will operate three daily nonstop flights between Orlando and San Juan and one daily nonstop flight between Tampa and San Juan, as the carrier transitions these routes from AirTran Airways-operated city pairs.

AirTran Airways will continue to offer service between San Juan and Baltimore/Washington, Fort Lauderdale/Hollywood, and Atlanta. Southwest soon will determine the best time to convert the remaining AirTran flying to Southwest as part of the ongoing integration to eventually become one airline flying under the Southwest brand. AirTran Customers who booked flights between San Juan and Tampa Bay or San Juan and Orlando for travel beginning April 14, 2013, or later will be contacted by the airline and rebooked on Southwest flights.

AirTran began service at San Juan in March 2008 with service to Orlando and Atlanta. In February 2009, the carrier added service between San Juan and Baltimore/Washington. AirTran added San Juan service to Tampa Bay in April 2011 and to Fort Lauderdale/Hollywood in May 2012. Today, AirTran still offers a total of five daily nonstop flights to three markets from San Juan: Atlanta, Baltimore/Washington, and Fort Lauderdale/Hollywood (see below).

Top Copyright Photo: Southwest Airlines’ Boeing 737-8H4 N8604K (msn 39883) taxies to the runway at Los Angeles International Airport.

AirTran Airways:

Southwest Airlines:

Bottom Copyright Photo: Bruce Drum. Boeing 737-7BD N313AT (msn 33927) departs the runway at Fort Lauderdale-Hollywood International Airport.

The incredibly shrinking AirTran route map and future Southwest destinations:

Please click on the map to expand.

Posted in: AirTran Airways, Southwest Airlines | Tagged: 33927, 39883, 737, 737700, 7377BD, 737800, 7378H4, AirTran Airways, Boeing, Boeing 737, Boeing 737700, Boeing 737800, FLL, Fort Lauderdale/Hollywood, LAX, Los Angeles, N313AT, N8604K, Southwest Airlines, southwest destinations, transportation

Four AirTran Airways cities convert to Southwest Airlines cities with new routes on April 14, 2013

By Bruce Drum on October 22, 2012 | Leave a Comment

Southwest Airlines (Dallas) announced today future service details affecting four AirTran Airways cities that will convert to Southwest Airlines service in the Spring of 2013.

Beginning April 14, 2013, Southwest Airlines nonstop service will be offered between:

Charlotte and Baltimore/Washington, Chicago (Midway), Houston (Hobby), and Orlando
Flint and Baltimore/Washington, Orlando, and Tampa Bay
Portland, Maine and Baltimore/Washington
Rochester and Baltimore/Washington, Chicago (Midway), Orlando, and Tampa Bay

AirTran service in these cities will end the previous day, April 13, 2013.

In addition to seasonal and other itinerary changes across the 97 destinations served by both carriers, AirTran’s international footprint grows with the new schedule to include new, daily service beginning April 14, 2013, between Punta Cana in the Dominican Republic and Baltimore/Washington, subject to applicable governmental approval.

Additional New Service on Southwest Airlines beginning April 14, 2013:

One daily nonstop flight between Boston Logan and Kansas City
One daily nonstop flight between Houston (Hobby) and Pittsburgh

Copyright Photo: Bruce Drum. Boeing 737-7H4 N459WN (msn 32497) of Southwest Airlines taxies to the active runway at Seattle/Tacoma International Airport (SEA).

AirTran Airways:

Southwest Airlines:

Posted in: AirTran Airways, Southwest Airlines | Tagged: 32497, 737, 737700, 7377H4, AirTran Airways, Boeing, Boeing 737, Boeing 737700, Free Bags Fly Here, N459WN, SEA, Seattle/Tacoma, Southwest Airlines

Southwest Airlines reports net income of $16 million in the third quarter

By Bruce Drum on October 18, 2012 | Leave a Comment

Southwest Airlines Company (Dallas) today reported its third quarter 2012 results. Third quarter 2012 net income was $16 million, or $.02 per diluted share, which included $81 million (net) of unfavorable special items. This compared to a net loss of $140 million, or $.18 loss per diluted share, in third quarter 2011, which included unfavorable special items totaling $262 million (net). Excluding special items, third quarter 2012 net income was $97 million, or $.13 per diluted share, compared to $122 million, or $.15 per diluted share, in third quarter 2011. This exceeded the First Call consensus estimate of $.12 per diluted share. Operating income for third quarter 2012 was $51 million, compared to $225 million in third quarter 2011. Excluding special items, operating income was $208 million for third quarter 2012, compared to $285 million for the same period last year. Additional information regarding special items is included in this release and in the accompanying reconciliation tables.

Gary C. Kelly, Chairman of the Board, President, and Chief Executive Officer, stated, “Our third quarter 2012 net income was $97 million, and operating income was $208 million, each excluding special items. Our third quarter 2012 passenger revenues, unit revenues, and load factor were all third-quarter records and meaningful accomplishments; however, we need sustained revenue momentum to achieve our return on invested capital target. And, that is a priority. While in line with the domestic industry, our third quarter 2012 year-over-year unit revenue growth was more sluggish than planned due to weaker demand, particularly in September. While the economy remains a significant concern, we are encouraged, thus far, by October’s bookings and revenue trends. Thus far in October 2012, passenger unit revenues are running ahead of the comparable year ago period by approximately four percent. For next year, we are excited about planned initiatives including the first phase of our new revenue management system.

“We have significant transformation work underway on five key strategic initiatives, and I am proud of our People and their results. The integration of AirTran into Southwest is our top priority and much progress was made in third quarter. We have converted nine AirTran aircraft to the Southwest livery. AirTran’s airport facilities at Seattle and Des Moines have been converted to Southwest; Key West, Florida will be converted next month; and Branson, Missouri is scheduled for March 2013. Our April 2013 schedule, to be published next week, will reflect four more AirTran city conversions at Charlotte, North Carolina; Flint, Michigan; Portland, Maine; and Rochester, New York. During third quarter 2012, AirTran ceased operations at six cities, while Southwest launched new service to Dayton, Akron-Canton, and Ronald Reagan Washington National Airport, which began the integration of AirTran in those cities. We remain on track to launch connection of the two airlines’ networks early next year and significantly optimize the combined networks compared to third quarter 2012. Seniority list integrations for seven of the eight impacted unions have been resolved. We produced approximately $110 million in pre-tax synergies in the first nine months of 2012, and we plan for $400 million in pre-tax synergies in 2013 (excluding acquisition and integration expenses). I am very pleased with the AirTran integration results, thus far, and anticipate significant financial performance improvement from next year’s planned actions.

“Our operating costs grew in the third quarter, but much of the growth was investment related. In particular, we are in the early stages of restructuring and retrofitting our fleet to improve our unit costs and long-term financial performance. This ‘fleet modernization’ effort is one of our strategic initiatives, and it, too, is expected to drive significant financial benefits beginning in 2013. We have retrofitted 147 Southwest 737-700s with our updated cabin interior and plan to complete all 372 -700 retrofits in first half 2013. AirTran’s -700s are receiving the updated interior as the aircraft are converted to the Southwest livery. We have added 26 737-800s to our fleet, with eight more deliveries scheduled for this year. Our near-term plans call for keeping the fleet relatively flat taking into account our aircraft deliveries, 737 Classic retirements, and leases/subleases to Delta. Overall, we anticipate our fleet modernization efforts will significantly benefit pre-tax results in excess of $700 million, annually, once fully implemented in 2015.

“Third quarter 2012 economic fuel costs were $3.16 per gallon, which was in line with third quarter 2011. Crude oil and jet fuel prices have soared over the last several months, and our fourth quarter 2012 economic fuel costs are expected to hit an all-time high $3.45 per gallon (based on market prices as of October 15, 2012). This is disappointing, especially given the weak economy, and we will need to more aggressively control costs in the next year.

“Our liquidity and balance sheet remain strong. As of yesterday, total cash on hand and short-term investments were $3.5 billion, in addition to a fully available unsecured revolving credit line of $800 million. Operating cash flow for the first nine months of this year was approximately $1.8 billion, resulting in strong free cash flow* of nearly $900 million. During that time, we continued to return cash to our Shareholders with the repurchase of approximately 37 million shares of common stock for approximately $325 million and dividends totaling $22 million. We also repaid $517 million of debt and capital lease obligations without refinancing. Our debt levels are modest with debt-to-capital leverage near 40 percent, including off balance sheet aircraft leases. We remain committed to our goals of enhancing Shareholder value, preserving our financial strength, and achieving our 15 percent pre-tax return on invested capital.”

Financial Results and Outlook

AirTran Airways, Inc. became a wholly-owned subsidiary of the Company on May 2, 2011. Results discussed in this release and provided in the accompanying unaudited Condensed Consolidated Financial Statements and Comparative Consolidated Operating Statistics include the results of operations and cash flows for AirTran beginning May 2, 2011, including the impact of purchase accounting. Year-to-date 2011 results do not include AirTran’s results prior to the acquisition date. However, the Company believes the analysis of specified financial results on a “combined basis” provides more meaningful year-over-year comparability. Year-to-date 2011 financial information presented on a “combined basis” is the sum of the historical financial results of the Company and AirTran for periods prior to the acquisition date, but includes the impact of purchase accounting beginning May 2, 2011. Supplemental financial information presented on a “combined basis” and the accompanying reconciliations are included in this release.

The Company’s total operating revenues in third quarter 2012 of $4.3 billion were comparable to third quarter 2011. Operating unit revenues increased 0.6 percent from third quarter 2011. Based on traffic and revenue trends thus far, the Company currently expects a solid year-over-year increase in operating unit revenues in fourth quarter 2012.

Total third quarter 2012 operating expenses were $4.3 billion, compared to $4.1 billion in third quarter 2011. Excluding special items in both periods, third quarter 2012 operating expenses increased 1.9 percent from third quarter 2011.

Third quarter 2012 economic fuel costs were $3.16 per gallon, including $.03 per gallon in unfavorable cash settlements for fuel derivative contracts, compared to $3.18 per gallon in third quarter 2011, including $.02 per gallon in unfavorable cash settlements. Based on market prices as of October 15, 2012, the Company expects fourth quarter 2012 economic fuel costs to be approximately $3.45 per gallon, including $.09 per gallon in unfavorable cash settlements for fuel derivative contracts. Fourth quarter 2012 premium costs, recorded in Other (gains) losses, are currently estimated to be approximately $3 million, compared to premium costs of $14 million in fourth quarter 2011 and $36 million in fourth quarter 2010. As of October 15, 2012, the fair market value of the Company’s hedge portfolio through 2016 was a net asset of approximately $196 million, compared to a net asset of approximately $133 million at September 30, 2012, and a net liability of $140 million at June 30, 2012. Additional information regarding the Company’s fuel derivative contracts is included in the accompanying tables.

Excluding fuel, profitsharing, and special items in both periods, third quarter 2012 unit costs increased 6.2 percent from third quarter 2011. Based on current cost trends, the Company expects a similar year-over-year increase in its fourth quarter 2012 unit costs, excluding fuel, profitsharing and special items in both periods. Third quarter 2012 profitsharing expense was $29 million, compared to $36 million in third quarter last year.

Operating income for third quarter 2012 was $51 million, compared to $225 million in third quarter 2011. Excluding special items, operating income was $208 million for third quarter 2012, compared to $285 million in third quarter 2011. The Company incurred $145 million in special charges (before taxes) during third quarter 2012 primarily associated with the Boeing 717 lease/sublease agreement with Delta Air Lines, Inc. and Boeing Capital Corp. Cumulative costs associated with the acquisition and integration of AirTran, as of September 30, 2012, totaled $310 million (before taxes). The Company expects total acquisition and integration costs will be approximately $550 million.

Other expenses for third quarter 2012 were $18 million, compared to $451 million in third quarter 2011. This $433 million decrease primarily resulted from $10 million in other gains recognized in third quarter 2012, compared to $405 million in other losses recognized in third quarter 2011. In both periods, these gains and losses primarily resulted from unrealized mark to market gains/losses associated with a portion of the Company’s fuel hedging portfolio, which are special items. Excluding these special items, other losses were $18 million in third quarter 2012, compared to $36 million in third quarter 2011, primarily attributable to the premium costs associated with the Company’s fuel derivative contracts. Net interest expense declined to $28 million in third quarter 2012, compared to $46 million in third quarter 2011, primarily as a result of the Company’s repayment of its $400 million notes in December 2011 and the redemption of its $385 million notes in March 2012.

Total operating revenues for the nine months ended September 30, 2012 increased 11.8 percent year-over-year to $12.9 billion, while total operating expenses increased 12.5 percent year-over-year to $12.4 billion, resulting in operating income in the nine months ended September 30, 2012 of $532 million, versus $546 million for the same period last year. Excluding special items, operating income was $702 million for the nine months ended September 30, 2012, compared to $672 million for the same period last year. Excluding special items and compared to combined results for the same period last year, total operating revenues for the nine months ended September 30, 2012 increased 3.4 percent, while total operating expenses increased 3.3 percent, resulting in a 5.2 percent increase in operating income for the nine months ended September 30, 2012.

Net income for the nine months ended September 30, 2012 was $343 million, or $.45 per diluted share, compared to $26 million, or $.03 per diluted share, for the same period last year. Excluding special items, net income for the nine months ended September 30, 2012 was $352 million, or $.46 per diluted share, compared to $263 million, or $.34 per diluted share, for the same period last year.

The Company’s return on invested capital (before taxes and excluding special items) was approximately seven percent for the twelve months ended September 30, 2012. Additional information regarding pre-tax return on invested capital is included in the accompanying reconciliation tables.

Copyright Photo: Tony Storck. Boeing 737-7H4 N912WN (msn 36621) of Southwest Airlines arrives at Baltimore/Washington. The airliner wears special “Tinker Bell – Powered by Pixie Dust” markings.

Southwest Airlines:

Posted in: Southwest Airlines | Tagged: 36621, 737, 737700, 7377H4, aviation, Baltimore/Washington, Boeing, Boeing 737, Boeing 737700, BWI, N912WN, Powered by Pixie Dust, Southwest Airlines, southwest airlines company, Tinker Bell, transportation

Southwest Airlines continues Denver expansion with the opening of a new flight crew bases and line maintenance at Denver International Airport

By Bruce Drum on October 2, 2012 | Leave a Comment

Southwest Airlines (Dallas) yesterday (October 1) officially opened the carrier’s newest Pilot and Flight Attendant crew bases at Denver International Airport. The new crew domiciles, which will be the airline’s ninth, will be home to nearly 400 Pilots and 400 Flight Attendants, with potential to grow as needed. The lounges will be located on the third level of concourse C at Denver International Airport (DIA). Southwest Airlines is also started line maintenance in Denver yesterday, which will be the first time the carrier has had this function at its operation at DEN.

The crew bases will serve as offices on the ground for Southwest’s Pilots and Flight Attendants. Flight Crews stationed in Denver may use these offices before and after trips to receive briefings, access required reading material, learn about changes in policies or schedules, and catch up on Southwest news.

Southwest currently operates eight Pilot and Flight Attendants bases nationwide. Additional Southwest crew domiciles are located in Baltimore/Washington, Chicago Midway, Dallas Love Field, Houston Hobby, Phoenix, Oakland, Orlando, and Las Vegas.

In addition to the crew bases, Southwest has also established a line maintenance operation at DIA. Southwest will now have six local Maintenance Employees perform routine maintenance as needed for flights flying to/from DIA to streamline the carrier’s growing operation in the Mile High City.

Southwest Airlines began service to Denver on January 3, 2006, with 13 daily nonstop departures to three destinations. The airline currently operates 166 daily nonstop flights to 54 destinations from Denver. Southwest recently demonstrated its LUV for the state of Colorado by dedicating Colorado One (above), which is a specialty aircraft painted with the colors of the Colorado state flag. Southwest also is actively engaged in the community through sponsorships of the Downtown Denver Partnership, the Denver Nuggets, Red Rocks Amphitheater, Denver’s Road Home, the Mile High Pedicab Company, and many more local organizations.

Copyright Photo: Mark Durbin. Boeing 737-7H4 N230WN (msn 34592) “Colorado One” taxies at San Francisco International Airport.

Southwest Airlines:

Posted in: Southwest Airlines | Tagged: 34592, 737, 737700, 7377H4, aviation, Boeing, Boeing 737, Boeing 737700, Colorado One, colorado state flag, DEN, Denver, denver international airport, N230WN, San Francisco, SFO, Southwest, Southwest Airlines, transportation, travel

Southwest Airlines orders up to 268 additional Blended Winglets sets

By Bruce Drum on September 20, 2012 | Leave a Comment

Aviation Partners Boeing (APB) (Seattle) has announced the largest single order in its history, with Southwest Airlines (Dallas) purchasing up to 268 additional sets of Blended Winglets for Boeing Next-Generation 737-700 and 737-800 aircraft, surpassing its original order placed in 2003. This order will ensure that all of Southwest’s future Boeing Next-Generation 737 aircraft will be equipped with Blended Winglets until Southwest Airlines transitions to the Boeing 737 MAX.

Blended Winglets provide the most reliable form of fuel hedging available in today’s volatile fuel market; the performance lasts for the life of the aircraft and regardless of fuel price — they continue to generate savings. To date, Aviation Partners Boeing estimates that Blended Winglet Technology has saved airlines worldwide more than 3.3 billion gallons of jet fuel.

Nearly 5,000 Blended Winglet Systems are now in service on Boeing 737s, 757s and 767s with more than 200 airlines worldwide.

Aviation Partners Boeing is a joint venture of Aviation Partners, Inc. and The Boeing Company.

Copyright Photo: Bruce Drum. Boeing 737-8H4 N8302F (msn 36680) taxies to the gate at Seattle-Tacoma International Airport (SEA).

Southwest Airlines:

Posted in: Southwest Airlines | Tagged: 36680, 737, 737800, 7378H4, aviation, aviation partners inc, Blended Winglets, Boeing, Boeing 737, Boeing 737800, boeing 737s, N8302F, SEA, seattle tacoma international airport, Seattle/Tacoma, Southwest Airlines, transportation

Branson, Missouri to convert to a Southwest city on March 9

By Bruce Drum on August 27, 2012 | Leave a Comment

Southwest Airlines (Dallas) announced today the carrier will add a 79^th destination to its route map with service to Branson, Missouri, beginning in March 2013. Southwest starts service in Branson on March 9, 2013, with daily flights offering nonstop service to Dallas (Love), Houston (Hobby), and Chicago (Midway), and with Saturday-only service to Orlando. Southwest will assume all flying from AirTran Airways, its wholly owned subsidiary, with AirTran’s operations at Branson fully converting to Southwest Airlines.

Southwest’s Branson Service:

One daily nonstop flight between Branson and Dallas Love Field
One daily nonstop flight between Branson and Houston Hobby
One daily nonstop flight between Branson and Chicago Midway
One Saturday-only nonstop flight between Branson and Orlando

Southwest also announced today that the airline has extended its flight schedule for travel between March 9, 2013, and April 12, 2013. In the new schedule, Southwest will begin service between several markets as listed below. The carrier also will add seasonal service to this flight schedule to accommodate Spring Break travel.

Southwest’s new markets:

Two daily nonstop flights between Newark and Nashville
One daily nonstop flight between Newark and Austin
One daily nonstop flight between Newark and New Orleans
One daily nonstop flight between Dayton and Orlando
One daily nonstop flight between Key West and New Orleans

Copyright Photo: Brian McDonough. Boeing 737-3H4 N352SW (msn 24888) in the special Lone Star One livery arrives at Baltimore/Washington.

Southwest Slide Show:

New WN routes radiating from Branson:

Please click on the map for the full size.

Posted in: Southwest Airlines | Tagged: 24888, 737, 737300, 7373H4, AirTran Airways, aviation, Baltimore/Washington, Boeing, Boeing 737, Boeing 737300, BWI, Lone Star One, N352SW, Southwest Airlines, transportation, travel

Southwest introduces “Colorado One”

By Bruce Drum on August 23, 2012 | Leave a Comment

Southwest Airlines (Dallas) yesterday (August 22) introduced its latest state logojet (N230WN) named “Colorado One” in support of its operations at Denver International Airport.

The company issued the following statement:

“Southwest Airlines is taking its “LUV” for the state of Colorado to new heights by unveiling Colorado One, a Boeing 737-700 emblazoned with an artist’s rendition of the Colorado state flag! Southwest unveiled the newest specialty aircraft in the carrier’s fleet at a ceremony at Denver International Airport (DIA) with more than 500 local employees and community leaders, along with Colorado Governor John Hickenlooper, Denver Mayor Michael B. Hancock, and Manager of Aviation for Denver International Airport, Kim Day.

The ceremony included attendees waiving Colorado flags, enjoying locally-made granola snacks, and cheering as Kelly, Governor Hickenlooper, Mayor Hancock, and Day closed the event by christening the aircraft amid fan-fare.

Southwest Airlines began service to Denver on Jan. 3, 2006, with 13 daily nonstop departures to three destinations. The airline currently operates 168 daily nonstop flights to 54 destinations from Denver.

Copyright Photo: Southwest Airlines. Boeing 737-7H4 N230WN (msn 34592) is also the 5,000th Boeing 737 built, a significant milestone aircraft.

Southwest Slide Show (see the other logojets):

Video:

Southwest-AirTran Destination Map:

Click on the map for the full size.

Posted in: Southwest Airlines | Tagged: 34592, 737, 737-700, 737-7H4, aviation, Boeing, Boeing 737, Boeing 737-700, Colorado One, colorado state flag, DEN, Denver, denver international airport, N230WN, Southwest Airlines, transportation, travel, vacation

Southwest arrives in Akron/Canton and Dayton

By Bruce Drum on August 13, 2012 | Leave a Comment

Southwest Airlines (Dallas) has officially landed in two brand new destinations with its new service to Akron-Canton Airport (CAK) and Dayton International Airport (DAY). The new service officially launched on Sunday, August 12, and the airline is celebrating the new service in both cities with press conferences at each airport this morning. In Akron-Canton, Southwest will offer two daily roundtrip flights to Southwest’s sizable operation at Chicago Midway, as well as one daily roundtrip flight to Denver. Likewise, the airline will begin service to Dayton with one daily flight to Denver. Southwest’s service in both markets will complement AirTran Airways‘ existing service in these cities. AirTran’s service will continue, and the airlines will jointly determine the best time to convert all AirTran’s flying to Southwest as part of the ongoing integration to eventually becoming one airline flying under the Southwest brand.

AirTran began service at Akron-Canton in 1997 and started serving Dayton in 1998. Today, AirTran offers 11 daily flights from Akron-Canton in addition to the three daily Southwest flights. From Dayton, today AirTran offers eight daily flights in addition to the daily Southwest flight to Denver.

Copyright Photo: Nick Dean. Boeing 737-7H4 N918WN (msn 29843) in the Illinois One special livery arrives at Seattle/Tacoma International Airport (SeaTac).

Southwest:

AirTran:

Posted in: AirTran Airways, Southwest Airlines | Tagged: 29843, 737, 737700, 7377H4, akron canton airport, aviation, Boeing, Boeing 737, Boeing 737700, dayton international airport, Illinois One, N918WN, SEA, Seattle/Tacoma, Southwest Airlines, transportation, travel

Southwest is celebrating its Three Million Fans on Facebook with Facebook One

By Bruce Drum on August 3, 2012 | Leave a Comment

Southwest Airlines (Dallas) today is celebrating the Three Million Fan milestone with a special discount offer and a signature “concept” plane dedicated to our fans! Southwest Airlines was the first airline to reach a million Facebook Fans back in 2010, and now is the first airline worldwide to amass three million Facebook Fans!

Southwest decided to offer its fans a special one-day discount code available today only! Fans can get 50 percent off a roundtrip Wanna Get Away Fare simply by using the promotion code: LUV2LIKE. This promotion code is good through August 3, 2012, 11:59 p.m. PDT and is available for travel 9/5, 9/11, 9/18, 9/25, 10/2, 10/31, and 11/6/12 (seats are limited, and some exclusions may apply). Customers can learn all the details and use the promo code only at http://www.southwest.com/html/promotions/fs-3million-likes.html.

Southwest also had a little FUN in creating a rendering of its own “concept” Facebook aircraft paint scheme. Southwest thought its Facebook Fans would particularly “like” to fly on Southwest’s Facebook One.

It is unclear if this “concept” special color scheme will evolve onto an actual aircraft. If so, we are waiting to “capture” it.

Southwest Airlines:

Posted in: Southwest Airlines | Tagged: aviation, Facebook, Facebook One, Southwest Airlines, transportation

Southwest announces nonstop service between Ronald Reagan Washington National Airport and Lambert-St. Louis International Airport

By Bruce Drum on August 1, 2012 | Leave a Comment

Southwest Airlines (Dallas) announced today it will begin service between Ronald Reagan Washington National Airport (DCA) and Lambert-St. Louis International Airport (STL) with two daily nonstop roundtrip flights starting on September 30, 2012.

Southwest Airlines began service to DCA on July 8, 2012, with daily nonstop roundtrip service to Austin. The new STL service is made possible by Southwest’s recent purchase of four inside-perimeter slots at DCA.

Southwest Airlines also has been expanding its presence in St. Louis, a market the carrier has served for more than 25 years. Southwest is the largest carrier at STL with DCA being its 34^th nonstop destination out of the market. Southwest recently added flights between STL and markets such as Newark, Nashville, New Orleans, Raleigh-Durham, Milwaukee, and Seattle. The carrier also will begin service between St. Louis and both New York LaGuardia and San Antonio beginning on August 12, 2012.

Copyright Photo: Brian McDonough. Brand new Boeing 737-8H4 N8305E (msn 36683) lands at Baltimore/Washington. Southwest is adding the new type on its main routes.

Southwest:

Posted in: Southwest Airlines | Tagged: 36683, 737, 737800, 7378H4, aviation, Baltimore/Washington, Boeing, Boeing 737, Boeing 737800, BWI, N8305E, ronald reagan washington national airport dca, Southwest, Southwest Airlines, transportation, travel

Southwest reports a second quarter net profit of $228 million

By Bruce Drum on July 19, 2012 | Leave a Comment

Southwest Airlines Company (Dallas) today reported its second quarter 2012 results. Second quarter 2012 net income was $228 million, or $.30 per diluted share, which included $45 million (net) of unfavorable special items. This compared to net income of $161 million, or $.21 per diluted share, in second quarter 2011, which included favorable special items totaling $40 million (net). Excluding special items, second quarter 2012 net income was a record $273 million, or $.36 per diluted share, compared to $121 million, or $.15 per diluted share, in second quarter 2011. This compared favorably to Thomson’s First Call mean estimate of $.33 per diluted share. Operating income for second quarter 2012 was $460 million, compared to $207 million in second quarter 2011. Excluding special items, operating income was a record $485 million for second quarter 2012, compared to $276 million for the same period last year.

Read the full report: CLICK HERE

Southwest Airlines:

Posted in: Southwest Airlines | Tagged: 27848, 737, 737700, 7377H4, Boeing, Boeing 737, Boeing 737700, LAX, Los Angeles, N714CB, Southwest Airlines, transportation

Southwest to start Kansas City-Minneapolis/St. Paul service on February 14

By Bruce Drum on July 16, 2012 | Leave a Comment

Southwest Airlines (Dallas) and its wholly owned subsidiary AirTran Airways announced today that they have extended their flight schedules for travel between February 14, 2013, and March 8, 2013. In the schedule, Southwest will begin new service between Kansas City and Minneapolis-St. Paul with two daily nonstop flights. Both carriers also will begin new seasonal routes as listed below.

Southwest’s new market:

Two daily nonstop flights between Kansas City and Minneapolis-St. Paul

Southwest’s new seasonal markets include:

One daily nonstop flight between Albuquerque and Orlando
One daily nonstop flight between Albany and Las Vegas
One daily nonstop flight between Hartford/Springfield and Las Vegas
One daily nonstop flight between Long Island/Islip and Ft. Myers
One daily nonstop flight between West Palm Beach and Pittsburgh
One daily nonstop flight between West Palm Beach and Providence
One daily nonstop flight between Providence and Ft. Myers

AirTran’s new seasonal markets include:

Two daily nonstop flights between Chicago Midway and Ft. Myers
One daily nonstop flight between Detroit and Ft. Myers

Southwest Airlines:

AirTran Airways:

Posted in: AirTran Airways, Southwest Airlines | Tagged: 27877, 737, 737700, 7377H4, AirTran Airways, aviation, Boeing, Boeing 737, Boeing 737700, Hobby, HOU, Houston, minneapolis st paul, N763SW, Southwest Airlines, transportation, travel

AirTran adds more flights on the Baltimore/Washington-Fort Lauderdale/Hollywood route

By Bruce Drum on July 12, 2012 | Leave a Comment

AirTran Airways (subsidiary of Southwest Airlines) (Dallas) has announced more options for Baltimore Customers looking to get to Florida, AirTran Airways will add as many as four daily nonstop flights between Baltimore/Washington and Ft. Lauderdale/Hollywood beginning on September 6, 2012, through the end of its published schedule on February 13, 2013. The new flights will add to AirTran’s existing three daily roundtrip flights between the markets.

With the September flight schedule, Southwest Airlines will operate three daily nonstop flights between Baltimore/Washington and Ft. Lauderdale/Hollywood for a combined total of up to ten daily roundtrip BWI-FLL flights between the carriers.

Southwest Airlines began service to Baltimore/Washington on Sept. 15, 1993, with ten daily nonstop departures to two cites. Since then, Southwest has grown its operation to more than 170 daily nonstop departures to nearly 50 cities. Southwest has nearly 3,000 Employees at BWI, and has a plane dedicated to the state, Maryland One.

Top Copyright Photo: Bruce Drum. Boeing 737-7BD N281AT taxies to the runway at Fort Lauderdale/Hollywood.

AirTran Airways:

Southwest Airlines:

Bottom Copyright Photo: Bruce Drum. Maryland One arrives at Las Vegas.

Posted in: AirTran Airways, Southwest Airlines | Tagged: 32486, 33922, 737, 737700, 7377BD, 7377H4, AirTran, AirTran Airways, aviation, Boeing, Boeing 737, Boeing 737700, FLL, Fort Lauderdale/Hollywood, LAS, Las Vegas, Maryland One, N214WN, N281AT, Southwest, Southwest Airlines, transportation, travel

Southwest to launch nonstop Nashville-New York LaGuardia flights on February 13

By Bruce Drum on July 9, 2012 | Leave a Comment

Southwest Airlines (Dallas) and its wholly owned subsidiary AirTran Airways announced today they extended their flight schedules for travel bookings through February 13, 2013. In the schedule, Southwest will begin new service between Nashville and New York LaGuardia with two daily nonstop flights. The carrier also will begin new seasonal routes as listed below:

Southwest’s new seasonal markets include:

One daily nonstop flight between Nashville and Ft. Myers
One daily nonstop flight between Ft. Lauderdale/Hollywood and Phoenix
One daily nonstop flight between Milwaukee and New Orleans
One daily nonstop flight between Ontario and Reno

Southwest Airlines:

Posted in: Southwest Airlines | Tagged: 26593, 737, 737300, 7373H4, aviation, Boeing, Boeing 737, Boeing 737300, FLL, Fort Lauderdale/Hollywood, N390SW, new york laguardia, Southwest Airlines, transportation, travel

Southwest Airlines acquires four Reagan National slots from Spirit Airlines

By Bruce Drum on July 4, 2012 | 1 Comment

Southwest Airlines (Dallas) has acquired four landing and takeoff slots at Washington (Reagan National) from Spirit Airlines (Fort Lauderdale/Hollywood). The Department of Transportation (DOT) approve the acquisition on July 2. Southwest intends to launch nonstop St. Louis-Washington (Reagan National) flights on September 6.

Meanwhile Spirit will move its two daily roundtrips from Fort Lauderdale/Hollywood to Reagan National to nearby Baltimore/Washington International Thurgood Marshall Airport (BWI) on September 5.

Top Copyright Photo: Eddie Maloney. Brand new Boeing 737-8H4 N8309C (msn 36985) was delivered on May 18, 2012.

Southwest:

Spirit:

Bottom Copyright Photo: Brian McDonough. Airbus A320-232 N603NK makes its final approach into Washington (Reagan National).

Posted in: Southwest Airlines, Spirit Airlines | Tagged: Boeing, Airbus, A320, 737, Washington, Southwest Airlines, LAS, Las Vegas, DCA, Reagan National, Spirit Airlines, Boeing 737, Airbus A320, transportation, Boeing 737800, 737800, Airbus A320200, A320200, aviation, A320232, N603NK, 4321, 7378H4, N8309C, 36985, baltimore washington international

Southwest Airlines previews live TV inflight on five Boeing 737s

By Bruce Drum on June 29, 2012 | Leave a Comment

Southwest Airlines (Dallas), in conjunction with Row 44, is taking the next step in wireless inflight entertainment with a preview of live TV on five of the carrier’s aircraft, with plans to expand to 20 aircraft by mid-July. Customers on these select planes will now have the option to purchase live TV consisting of seven sports and news channels, and view on their personal devices.

Flight Attendants will notify the Southwest Customers who are onboard a TV-enabled WiFi aircraft. Those interested in using the TV service during this preview period will have the opportunity to log on to the service through the WiFi portal via their personal WiFi-enabled device (tablets, laptops, WiFi-enabled smart phones, etc). Live TV is offered as a separate charge from WiFi, so Customers do not have to purchase WiFi to purchase live TV. The airline will evaluate different price points from $3 to $8 throughout the trial period, with instructions on how to access live TV available via a link on the Southwest Airlines WiFi portal.

Southwest Airlines will offer seven live TV channels on these five aircraft so that Customers can stay abreast of the latest news or sports scores while flying at 35,000 feet:

NBC Sports
MLB live games from MLB.com
NFL Network
CNBC
MSNBC
Fox News
Fox Business News

The Row 44 system not only supports this new feature, but it was created with live TV in mind. Customers who are watching TV are accessing a separate portion of the bandwidth specifically dedicated for that use. Both live TV and WiFi usage will be monitored to determine if they perform together seamlessly, and if successful, live TV will be available to all WiFi-enabled planes by the end of the year.

Southwest Airlines maintains the world’s largest satellite-based WiFi fleet with more than 250 connected aircraft and plans to equip the entirety of their Boeing 737-700s and 737-800s (70 percent of its total fleet) by mid-2013. Row 44 offers Southwest Airlines the ability to be flexible as the airline’s needs evolve, and the satellite-based technology ensures that Customers’ access to WiFi and live TV will be uninterrupted during near-International flights over water.

Copyright Photo: Brian McDonough. Note the Row 44 embedded device on the top of this aircraft – a quick visual way to denote WiFi-equipped WN aircraft.

Southwest:

Posted in: Southwest Airlines | Tagged: 737, 737700, 7377H4, aviation, Baltimore/Washington, Boeing, Boeing 737, Boeing 737700, BWI, inflight entertainment, live tv channels, N907WN, Row 44, Southwest Airlines, transportation, WiFi

Southwest Airlines and AirTran Airways aircraft maintenance technicians ratify Seniority Integration Agreement

By Bruce Drum on June 22, 2012 | Leave a Comment

Southwest Airlines (Dallas) announced the Aircraft Maintenance Technicians (AMT) from Southwest Airlines, represented by the Aircraft Mechanics Fraternal Association (AMFA), and AirTran Airways (Dallas), represented by the International Brotherhood of Teamsters (IBT) Local 528, voted to ratify their Seniority Integration Agreement. This agreement integrates the two groups’ seniority lists. Southwest Airlines finalized closing of the acquisition of AirTran Holdings, Inc., on May 2, 2011.

AMFA represents approximately 1,750 Southwest Airlines Aircraft Maintenance Technicians, and the IBT represents close to 500 Mechanics from AirTran Airways.

Today’s vote by the AMTs means they now join the Pilots, Flight Attendants, Flight Instructors, Dispatchers, and Ramp, Operations, Provisioning and Freight Agents as having successfully completed the Seniority Integration negotiation process. Work groups still in seniority integration negotiations include Customer Service Agents and Customer Support and Service Employees and Materials Specialists.

This moves the merger one step closer.

Top Copyright Photo: Bruce Drum.

Southwest Airlines:

AirTran Airways:

Bottom Copyright Photo: Jay Selman. The AirTran Boeing 717s will not be painted in Southwest’s livery.

Posted in: AirTran Airways, Southwest Airlines | Tagged: 27717, 55012, 717, 717200, 7172BD, 737, 737300, 7373H4, aircraft maintenance technicians, aircraft mechanics fraternal association, AirTran, AirTran Airways, airtran holdings inc, aviation, Boeing, Boeing 717, Boeing 717200, Boeing 737, Boeing 737300, Charlotte, CLT, international brotherhood of teamsters, LAS, Las Vegas, Little Debbie Cupcakes, N647SW, N950AT, Southwest Airlines, transportation, Triple Crown

TWU Local 555 at Chicago Midway: Southwest wants to outsource some of our ramp work

By Bruce Drum on June 20, 2012 | Leave a Comment

Southwest Airlines‘ (Dallas) ramp workers at its Chicago (Midway) hub, represented by the Transport Workers Union (TWU), handed out leaflets yesterday (June 19) to passengers at MDW to explain their side in the continuing contract negotiations with the company that began in July 2011 but so far have resulted in little progress according to this article by CBS News.

TWU says Southwest wants the contract authority to replace up to 20 percent of the TWU workers with contract workers provided by (lower cost) independent contractors.

Is the beginning of the end of friendly labor relations at Southwest?

Read the full article: CLICK HERE

In other news, Southwest has begun retiring its 25 Boeing 737-500s (the first two – 513 and 519 have been retired).

Southwest Airlines:

Posted in: Southwest Airlines | Tagged: 24184, 737, 737500, 7375H4, aviation, Boeing, Boeing 737, Boeing 737500, Chicago Midway, contract negotiations, contract workers, LAX, Los Angeles, N507SW, SeaWorld Adventure Parks, Shamu, Southwest Airlines, transport workers union, transportation, TWU

Southwest’s dispatchers approve the new contract

By Bruce Drum on June 11, 2012 | Leave a Comment

Southwest Airlines (Dallas) and the Transport Workers Union (TWU) 550, representing the carrier’s more than 180 Dispatchers, announced today that the Dispatchers overwhelmingly ratified its tentative agreement with the Company. The agreement is for a new, five-year contract through November 2014. The previous contract became amendable November 2009.

In early 2011, Southwest sought assistance from the National Mediation Board (NMB) through the mediation process as defined by the Railway Labor Act.

In other news, Southwest today (June 11) officially opened its new Customer Support and Services (CS&S) Center in the City of San Antonio. The new Center, located at Interstate 35 and O’Connor, replaces the old facility located at Medical Drive, where Southwest Airlines’ Employees provided service to Customers for more than 30 years. This new location will provide Southwest’s Employees with more than 60,000 square feet of floor space with options to extend over time.

Southwest Airlines:

Posted in: Southwest Airlines | Tagged: aviation, Southwest Airlines, transport workers union, transportation

Southwest Airlines to fly to Key West, Florida, announces its winter schedule

By Bruce Drum on June 4, 2012 | 3 Comments

Southwest Airlines (Dallas) and its wholly owned subsidiary AirTran Airways (Dallas) announced today new nonstop routes as they extend their flight schedules for travel bookings through January 4, 2013. Southwest also announced that it will begin service to Florida’s Key West Airport (EYW) on November 4, 2012, assuming all flying from AirTran. Southwest will operate one daily nonstop departure to Tampa Bay (TPA) and one daily nonstop departure to Orlando (MCO). In addition, Southwest will add new service between several markets (details below).

Southwest’s new markets include:

Two daily nonstop flights between Dallas Love Field and Harlingen
One daily nonstop flight between Denver and Louisville
Two daily nonstop flights between Houston Hobby and Indianapolis
One daily nonstop flight between Houston Hobby and Orange County
One daily nonstop flight between Kansas City and New Orleans

Southwest assumes flying from AirTran:

One daily nonstop flight between Key West and Orlando
One daily nonstop flight between Key West and Tampa Bay
Two daily nonstop flights between Boston Logan and Milwaukee
One daily nonstop flight between Ft. Lauderdale/Hollywood and Milwaukee
Five daily nonstop flights between Minneapolis-St. Paul and Milwaukee
One daily nonstop flight between San Francisco and Milwaukee
One daily nonstop flight between Orlando and Minneapolis-St. Paul

AirTran has also made adjustments to its flight schedule to accommodate seasonal demand to several destinations.

AirTran’s seasonal new markets include:

One daily nonstop flight between Buffalo and Tampa Bay
One daily nonstop flight between Akron-Canton and Ft. Myers
One daily nonstop flight between Columbus and Ft. Lauderdale/Hollywood
One daily nonstop flight between Columbus and Tampa Bay
One daily nonstop flight between Ft. Lauderdale/Hollywood and Indianapolis
One daily nonstop flight between Ft. Lauderdale/Hollywood and Philadelphia
One daily nonstop flight between Pittsburgh and Tampa Bay
One daily nonstop flight between Rochester and Tampa Bay
Four weekly nonstop flights between Flint and Ft. Myers
Four weekly nonstop flights between Grand Rapids and Ft. Myers

Top Copyright Photo: Bruce Drum.

Bottom Copyright Photo: Tony Storck.

Southwest:

AirTran:

Posted in: AirTran Airways, Southwest Airlines | Tagged: AirTran Airways, aviation, Southwest Airlines, transportation, travel

Southwest agrees to spend $100 million for international flights from Houston Hobby over the objections of United Airlines

By Bruce Drum on May 27, 2012 | Leave a Comment

Southwest Airlines (Dallas) has agreed to spend approximately $100 million for upgrades and improvements to Houston’s Hobby Airport on the south side in order to launch and receive international flights. The agreement with the city was over the objections of United Airlines (Chicago) which operates a large international hub at Houston’s Bush Intercontinental on the north side.

Read the full story from news-journal.com: CLICK HERE

Southwest:

Posted in: Southwest Airlines, United Airlines | Tagged: international hub, Southwest Airlines, transportation, travel, United Airlines

AirTran Airways launches new international flights from San Antonio, Austin, Fort Lauderdale/Hollywood, Orange County and Chicago Midway

By Bruce Drum on May 24, 2012 | Leave a Comment

AirTran Airways (Dallas), a subsidiary of Southwest Airlines (Dallas), announced today that the carrier is officially kicking off brand new international service from several markets including San Antonio, Austin, Orange County, California, and Chicago Midway, as well as new service between Ft. Lauderdale/Hollywood and San Juan, Puerto Rico. The new routes were announced last winter and service details are outlined below. Today’s departure out of San Antonio International Airport marks AirTran’s first international destination and flight from the airport. The international service also brings AirTran service to Austin-Bergstrom International Airport and John Wayne Airport in Orange County for the first time.

San Antonio New Service:

Beginning May 24, AirTran will operate four weekly nonstop flights between San Antonio (SAT) and Cancun (CUN) with service Tuesdays, Thursdays, Saturdays, and Sundays. Beginning Sept. 1, 2012, through the end of the current schedule*, the carrier will operate three weekly nonstop flights on Thursdays, Saturdays, and Sundays.
Also beginning May 24, AirTran will operate one daily nonstop flight between San Antonio and Mexico City (MEX).

Ft. Lauderdale/Hollywood New Service:

Beginning May 24, AirTran will launch service between Ft. Lauderdale/Hollywood (FLL) and San Juan, Puerto Rico, (SJU) with two daily nonstop flights.

Austin New Service:

Beginning May 25, AirTran will launch inaugural service to Austin-Bergstrom International Airport (AUS) with four weekly nonstop flights between Austin and Cancun on Mondays, Wednesdays, Fridays, and Sundays through Aug. 31, 2012. Beginning Sept. 1, 2012, through the end of the schedule, the carrier will operate the service on Mondays, Fridays, and Sundays.

Orange County New Service:

Beginning June 3, AirTran will operate one daily nonstop flight between John Wayne Airport in Orange County (SNA) and Mexico City and one daily nonstop flight between Orange County and Cabo San Lucas/San Jose del Cabo (SJD).

Chicago Midway New Service:

Beginning June 3, AirTran will operate one daily nonstop flight between Chicago Midway (MDW) and Cancun.

*Current schedules are available for booking through Nov. 2, 2012.

AirTran Slide Show: CLICK HERE

Southwest Slide Show: CLICK HERE

Posted in: AirTran Airways, Southwest Airlines | Tagged: AirTran Airways, Southwest Airlines

Delta Air Lines to lease and operate all 88 AirTran Airways Boeing 717s

By Bruce Drum on May 22, 2012 | Leave a Comment

Delta Air Lines (Atlanta) will become a new Boeing 717 operator as Southwest Airlines (Dallas) has found a way to dispose of the 88 Boeing 717-200s operated by its subsidiary AirTran Airways (Dallas).

Southwest confirmed today that the airline, together with its subsidiary, AirTran Airways, Inc., has reached a tentative agreement with Delta Air Lines, Inc., and Boeing Capital Corp., to sublease all 88 of its Boeing 717 aircraft to Delta. A final agreement is subject to Delta and Southwest reaching certain agreements with all parties related to the aircraft leases. The tentative agreement between Southwest and Delta would transition the 717s over three years starting in the second half of 2013 with completion in 2015.

A transition of the 717s was an option that the airline acknowledged when it executed its fleet agreement with the Boeing Company. The plan calls for the transition of approximately three 717 aircraft per month beginning in mid-2013. Southwest is not releasing any additional details about the tentative agreement at this time. The Company currently plans to keep the total fleet count relatively flat as the 717s transition to Delta.

Delta will use the 717s to replace inefficient 50-seat regional jets and some older McDonnell Douglas DC-9-51 aircraft still in service, on a capacity-neutral basis.

The tentative agreement also provides Delta with additional flexibility to acquire up to 70 larger two-class, 76-seat regional jets as the Boeing 717 aircraft are delivered to Delta. Delta currently operates 255 larger two-class regional jets; the fleet will be increased to 325 aircraft.

Delta will begin taking delivery of Boeing 717 aircraft as early as 2013 upon ratification of a new tentative agreement covering Delta’s more than 12,000 pilots. The tentative agreement was approved on May 21 by the Master Executive Council (MEC) of the Delta Air Line Pilots Association (ALPA), and now will be presented to pilots for review and ratification through June 30.

Southwest’s plans to integrate current AirTran Employees into the Southwest operation over the next several years remain unchanged. All Pilots would train and transition directly into the airline’s 737 fleet as the 717s are reduced. AirTran Flight Attendants and Maintenance personnel are currently trained on both aircraft types. Southwest would replace AirTran’s 717 flying with 737 aircraft, and would work with individual airports on facilities transition timelines. Southwest affirms its current plans to maintain service to all previously announced airports.

Because of this transaction, the AirTran 717s are not likely ever to wear Southwest’s livery.

AirTran Slide Show: CLICK HERE

Delta Slide Show: CLICK HERE

Southwest Slide Show: CLICK HERE

Posted in: AirTran Airways, Delta Air Lines, Southwest Airlines | Tagged: AirTran Airways, Delta Air Lines, Southwest Airlines

Southwest’s flight attendants turn down the Overwater/Near International flying by 61% to 39%

By Bruce Drum on May 22, 2012 | Leave a Comment

Southwest Airlines (Dallas) has received a set back in its plan to add international flights (and AirTran Airways). The Southwest flight attendants have turned down by a 61 percent no vote the proposed Overwater/Near International Flying Tentative Agreement reached by management and the TWU leaders.

Read the full report from the TWU: CLICK HERE

Southwest Slide Show: CLICK HERE

Posted in: Southwest Airlines | Tagged: Southwest Airlines

Southwest Airlines and its Dispatchers end mediation and announce a tentative agreement, will defer deliveries of 30 new Boeing 737-800s

By Bruce Drum on May 17, 2012 | Leave a Comment

Southwest Airlines (Dallas) and the Transport Workers Union (TWU) 550, representing the carrier’s more than 180 Dispatchers, announced yesterday that the two parties have reached a tentative agreement. The tentative agreement is for a new, five-year contract through November 2014, and will be presented to all Southwest Dispatchers pending a final review and approval from the TWU 550 Board of Directors. The current contract became amendable in November 2009.

In early 2011, the Carrier sought assistance from the National Mediation Board (NMB) through the mediation process as defined by the Railway Labor Act. Both Southwest and TWU 550 would like to thank the NMB for its role in reaching this current tentative agreement.

In other news, Southwest has announced today the addition of e-Miles as a new Partner of the carrier’s frequent flyer program, Rapid Rewards. e-Miles is an opt-in online advertising channel that rewards its members for watching, reading, and responding to targeted advertising. e-Miles members now have the opportunity to redeem their e-Miles currency for Rapid Rewards Points.

Finally, the company is deferring 30 Boeing 737-800 (above) deliveries (20 in 2013 and 10 in 2014) to 2017 and 2018.

Read the full report from Reuters: CLICK HERE

Southwest Slide Show: CLICK HERE

Posted in: Southwest Airlines | Tagged: Southwest Airlines

Tag Archives: Southwest Airlines

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