Southwest
Airlines
Nation's leading discount
airline.
Headquarters:
2702 Love Field Drive
Dallas, TX 75235
Employees: 35,499
CEO: Gary Kelly
Stock Symbol: LUV
Website:
http://www.southwest.com
Career
Site
Southwest is the nation's leading airline carrying 101.9 million passengers in 2008 on over 3,100 flights daily.
The airline is best known for its low prices with fares ranging from $49 to $399 with advance purchase. Southwest books most of its flights through its website to save money and doesn't participate in other travel sites like Orbitz or Travelocity, 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 Las Vegas, Phoenix, Baltimore, Chicago
Midway and Houston Hobby.
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 continued its policy of not charging fees for first and second bags and for snacks unlike other airlines.
Southwest has introduced Business Select 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.
Southwest flies to 68 cities in 35 states. This year, Southwest began service at Boston's Logan Airport, New York's LaGuardia Airport, Milwaukee and Minneapolis/St. Paul.
The company's 2009 fleet plan includes taking delivery of 13 new Boeing 737-700 aircraft, including three aircraft originally scheduled for delivery in 2008 that were delayed to 2009 due to Boeing machinists' 2008 strike. Two 737-300 lease returns that were planned for fourth quarter 2008 were deferred to first quarter 2009. Including these two lease returns, Southwest plans to return or retire 15 aircraft in 2009 and end the year with 535 aircraft.
In 2008, the company reported record revenues of $11.0 billion and net income of $178 million. The company has been using a sophisticated hedging program for fuel purchases which saved millions of dollars when the price of oil soared in 2008 but hurt when prices collapsed later in the year.
The average passenger fare in 2008 was $119.16, up 11.8% from the previous year. The airline had a passenger load factor of 71.2%, which is the percentage of available seats filled.
Due to weaker results in 2009, Southwest is reportedly offering buyouts to employees, freezing hiring and salaries for senior management.
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
Southwest is known for treating employees
well and as a great place to work. According to the company,
it received 284,827 resumes and hired 3,363 new Employees in
2006.
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 December 20, 2009
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