Southwest
Airlines
Nation's leading discount
airline.
Headquarters:
2702 Love Field Drive
Dallas, TX 75235
Employees: 45,000
CEO: Gary Kelly
Stock Symbol: LUV
Website:
http://www.southwest.com
Career
Site
Southwest is the nation's leading airline with over 3,200 flights daily to 73 cities in 38 states.
The airline is best known for its low prices and no-frills service. Southwest books most of its flights through its website to save money and doesn't participate in other travel websites, which would force the airline to pay commissions.
Known for its quirky style, Southwest specializes in direct flights from city-to-city. It turns planes around quickly from landing to departure so planes spend more time in the air instead of waiting on the ground. The top five airports served based on daily flights are Chicago Midway, Las Vegas, Phoenix, Baltimore, and Denver.
Southwest acquired AirTran of Orlando on May 2, 2011 and is now a Southwest subsidiary with over 500 flights per day. Southwest will integrate AirTran with its company over the next several years.
Southwest only flies 737 aircraft so it can standardize maintenance and save costs. Most planes are able to carry 137 passengers. Seats are not assigned and there is no first-class section. Meals aren't served on flights -- only snacks and beverages. The airline has 559 Boeing 737 jets.
In March, Southwest took delivery of its first 737-800 airplane, which carries 175 passengers and will require four flight attendants instead of the usual three on flights. Southwest plans to take delivery of 33 737-800 aircraft in 2012, which will let the airline carry more passengers on longer routes.
The airline has continued its policy of not charging fees for first and second bags and for snacks unlike other airlines. Southwest also has no fees for making flight changes.
Southwest has a Business Select program where customers can pay a higher fare and board the plane first since there is no assigned seating. The airline also lets passengers board after Business Select customers for a $10 fee to get better seats.
The airline switched to a new Rapid Rewards program on March 2011 where points are earned based on spending instead of receiving credits per flight.
In 2011, Southwest reported revenues of $15.6 billion, a 29.4% increase, and net income of $178 million, down 61.2%. The company has reported annual profits for 39 consecutive years which is unheard of in the airline industry but is warning of trouble this year due to higher fuel costs.
Southwest carried a total of 135.2 million passengers in 2011 with a load factor of 80%. The average fare paid in 2011 was $141.14. The average fuel cost per gallon paid by Southwest was $3.18 per gallon.
"Despite the decline in earnings, 2011 was a momentous year at Southwest Airlines," said CEO Gary Kelly. "We celebrated our 40th year of providing legendary low fare, high quality, domestic air travel and delivered our 39th consecutive year of profits to our Shareholders. We launched service to Greenville-Spartanburg and Charleston, South Carolina and Newark, New Jersey within two weeks time, increasing Southwest's domestic footprint to 72 cities. In March, we launched our All-New Rapid Rewards® program. The completely revamped, industry-leading frequent flyer program continues to grow at a strong pace. Results, thus far, are well beyond our expectations."
Kelly added, "On May 2nd, we acquired AirTran Airways, increasing our fleet by 140 aircraft, and extending our combined network into key markets we didn't previously serve, such as Atlanta and Washington, D.C., via Ronald Reagan National Airport, as well as many smaller domestic cities and leisure markets in the Caribbean and Mexico. We also expanded our presence at New York LaGuardia, Boston, Milwaukee, and Baltimore/Washington."
Southwest Airlines currently operates six Customer Support and Services Centers in Albuquerque, Chicago, Houston, Phoenix, Oklahoma City, and San Antonio.
Southwest pilots are among the most experienced in the industry and are also the best paid.
Southwest said it received 143,143 resumes and hired 2,188 new Employees in 2010.
History
Southwest was founded by Rollin King and
Herb Kelleher. The airline began service June 18, 1971 with three
airplanes and flights to Houston, Dallas, and San Antonio. They
concentrated on getting customers to their destination on-time
and at low fares. They also made sure people had a good time
while flying.
Southwest carried its one millonth passenger
in 1974. The company went public under the symbol LUV in 1977.
The airline topped the monthly domestic
originating passenger rankings for the first time in May 2003.
In 2007, Southwest changed its boarding
policy to allow users to board by specific number instead of
just three sections A, B, C. It also introduced Business Select
seating at a higher ticket price that lets passengers board first
and includes a complimentary alcoholic beverage.
Benefits
Below is a summary of benefits offered:
Passes/Travel Privileges
One of the special benefits of working
at Southwest is flying free. Effective the first day of employment,
Employees, spouses, eligible dependent children, and parents
of Employees have unlimited space-available travel privileges
on Southwest. Discounted travel arrangements with other carriers
are also available through the Southwest Airlines Pass Bureau,
subject to eligibility requirements and other restrictions.
ProfitSharing and 401(k)
Participation in the ProfitSharing Plan
is offered to all eligible Employees. The plan is funded by Company
contributions to profitsharing accounts. Company contributions
are made when the Company meets profitability goals set each
year.
The 401(k) Plan is designed to help Employees
to prepare for the future. Eligible Employees may contribute
up to 50% of their pay to the plan on a pretax basis. A Company
match is offered based on Employee groups. Rollovers are accepted
from the Employee's former employer's qualified plan.
Stock Purchase Plan
This plan was specially designed to allow
Employees to share in the success of the Company. Through the
plan, Employees may invest in Southwest Airlines Co. stock through
payroll deductions. Employees pay only 90% of market value for
the stock. The Company pays broker commissions on stock purchases.
Medical Insurance
Employees may choose from several different
medical plan options depending on their lifestyle, needs, and
priorities through a cafeteria style flexible benefits program.
PPO Network and HMO plans are included. Most medical plan options
are available to Employees at no cost with family coverage available
at minimal cost.
Dental Insurance
Dental coverage is offered through several
dental plan options. Basic dental coverage is available to Employees
at no cost. Optional additions and family coverage are available
at minimal cost. All dental coverage options include preventive,
basic, major, and orthodontic coverage.
Vision
Vision coverage is offered to provide affordable
vision care for Employees and their families. Coverage under
the vision plan includes complete eye exams and lenses and frames
or contact lenses. Under some plans, vision coverage is available
only to certain work groups.
Life Insurance
Basic life insurance is provided to all
Employees at no cost. Coverage is based on annual salary. Optional
Employee and dependant life insurance are also available.
Sick Leave, Vacation and Holidays
Depending on employment classifications,
Employees are able to accrue time off for personal illness and
vacation. Employees celebrate several paid holidays throughout
the calendar based on their employment classifications.
Other Benefits
Long-Term Disability Insurance ·
Dependant Care Spending Account · Healthcare Spending
Account · Adoption Assistance Reimbursement Benefit ·
Child and Elder Care Resource and Referral Program · Mental
Health Chemical Dependency/Employee Assistance Program
Updated March 28, 2012
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