Leadership

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Leadership

• Herbert (Herb) D. Kelleher - Executive
  Chairman of the BoardGary Kelly - Vice Chairman
  of the Board and Chief Executive OfficerColleen
  Barrett - President

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History of Southwest Airlines

• 1971-Rollin King and Herb Kelleher got together
  and decided to start a different kind of airline.
  Lamar Muse as president of the airline
• 1973-Southwest has first profitable yeaa
• 1974- Southwest carries one millionth passenger
• 1977 SW carries its five millionth passenger and
  stock is listed on the NYSE as LUV
• 1982- Herb Kelleher comes aboard as permanent
  president, CEO, and chairman of the board for SW
  airlines.

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History Continued

• 2004 SW announces its 31st consecutive year of
  profitability and begins offering online boarding
  passes at southwest.com
• 2006 SW celebrates its 35th anniversary on June
  18
• Currently More than 33,000 total Employees
  throughout the Southwest system.

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Where Southwest flies

• Cities Served by Southwest
• Southwest flies to 64 cities in 32 states.
• Albany Indianapolis Phoenix Albuquerque Long
  Island Pittsburgh Amarillo Jackson
  Portland Austin Jacksonville Providence
  Baltimore/Washington Kansas City Raleigh-Durham
  Birmingham Las Vegas Reno Boise
  Little Rock Sacramento Buffalo Los Angeles
  (LAX)St. Louis Burbank Louisville Salt Lake
  City Chicago (Midway) Lubbock San
  Antonio Cleveland Manchester San
  Diego Columbus Midland/Odessa SanFrancisco
  Corpus Christi Nashville San Jose Dallas (Love
  Field) New Orleans Seattle/Tacoma Denver Norfolk
  Spokane Detroit (Metro) Oakland Tampa
  El Paso Oklahoma City Tucson Ft. Philadelphia
  Lauderdale/Hollywood Omaha Tulsa Ontario
  Ft. Myers/Naples West Palm Beach Harlingen/South
  Padre Island Orange County Washington, DC
  (Dulles) Hartford/Springfield Orlando  Houston
  (Hobby)  

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2006 Financials
2006 Financial Statistics Net income 499
million Total passengers carried 96.3 million
Total RPMs 67.7 billion Passenger load factor
73.1 percent Total operating revenue 9.1
billion
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Southwest Airlines Distinctions

• Southwest Airlines has consistently received the
  lowest ratio of complaints per passengers boarded
  of all Major U.S. carriers that have been
  reporting statistics to the Department of
  Transportation (DOT) since September 1987, which
  is when the DOT began tracking Customer
  Satisfaction statistics and publishing its Air
  Travel Consumer Report.
• The airline adopted the first profit-sharing plan
  in the U.S. airline industry in 1973. Through
  this plan and others, Employees own at least
  eight percent of the Company stock.

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Distinctions continued

• The airline is about 87 percent unionized.
• Southwest Airlines is a member of the FORTUNE
  500.
• The Ronald McDonald House program, cornerstone of
  the Ronald McDonald Childrens Charities, is the
  primary corporate charity of Southwest Airlines.
  Annually, the Company sponsors the Southwest
  Airlines LUV Classic golf tournaments whose
  proceeds benefit various Ronald McDonald Houses
  and have totaled close to 9 million over the
  past 20 years

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Social Responsibility

• Southwest Airlines has always been devoted to
  each and every community that we serve. Our
  Employees, Customers, and neighbors make the
  Southwest Family the LUVing place that it is, and
  we are proud to offer our cities more than just
  friendly and affordable air service. We offer our
  hearts! Thousands of times each year, Southwest
  Airlines and its Employees reach out to
  individuals, families, and entire communities
  providing help where it is needed. Most donations
  are invisibleexcept to the people they affect.
  For Southwest, that is recognition enough.

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Mission Statement

• The mission of Southwest Airlines is dedication
  to the highest quality of Customer Service
  delivered with a sense of warmth, friendliness,
  individual pride, and Company Spirit.

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Southwest Culture

• Many airlines have tried to copy Southwests
  business model, and the Culture of Southwest is
  admired and emulated by corporations and
  organizations in all walks of life.

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• Every company I have ever gone in, they say
  people are number one, but theyre just not. They
  dont live up to that, and we do.
• Gary Kelly, CFO Southwest Airlines

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Southwest Airlines Recognitions

• G.I. Jobs recognized Southwest Airlines in the
  Top 50 Military Friendly Employers of 2006.
  Southwest was the only airline included on the
  list.
• In October 2007, Southwest Airlines was named
  number two in Leadership Development for a large
  company by Leadership Excellence Magazine.

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Best company to work for

• FORTUNE has ranked Southwest Airlines in the top
  five of the Best Companies to Work For in
  America. Southwest ranked first in 1997 and 1998,
  second in 1999, and fourth in 2000. Southwest has
  chosen not to participate since 2000.
• BusinessWeek ranked Southwest Airlines as one of
  the top 50 Best Places to Launch a Career.

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Intern Programs-incentives

• Why Become a Southwest Airlines Intern? Did you
  know...
• All Southwest Airlines Interns are eligible for
  FREE UNLIMITED space-available travel anywhere
  Southwest Airlines flies.
• SWA offers a casual dress code.
• As an intern, you are eligible to participate in
  career development classes, such as Myers-Briggs
  Type Indicator, 737 General Familiarization, and
  Resume building/Interviewing skills workshop.
• Being a SWA Intern allows you to experience
  informal networking opportunities and social
  functions, such as deck parties, intern outings,
  lunches, and holiday celebrations.

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To Employees

• We are committed to provide our Employees a
  stable work environment with equal opportunity
  for learning and personal growth. Creativity and
  innovation are encouraged for improving the
  effectiveness of Southwest Airlines. Above all,
  Employees will be provided the same concern,
  respect, and caring attitude within the
  organization that they are expected to share
  externally with every Southwest Customer.
• Southwest Airlines

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Southwests University for People

• University for People
• Leadership classes
• Software training
• Team performance
• Personal development
• Career development workshops
• Career Development Service
• Virtual University at Southwest Airlines
  University for People

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Much more than executives deserve credit

• Executive assistants are given just as much
  credit that the executives they assist are.
• The culture of Southwest acknowledges the role
  that each member of the staff contributes to the
  system.

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• Ive tried to create a culture of caring for
  people in the totality of their lives, not just
  at work. Theres no magic formula. Its like
  building a giant mosaic--it takes thousands of
  little piecesThe intangibles are more important
  than the tangibles. Someone can go out and buy
  airplanes from Boeing and ticket counters, but
  they cant buy our culture, our esprit de corps.
  Herb Kelleher
• CEO Southwest
• Wall Street Journal
• 8/31/99

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What defines the culture of Southwest?

• Southwest received 284,827 resumes and hired
  3,363 new Employees in 2006.
• Southwest has 1,133 married couples. In other
  words, 2,266 Southwest Employees have spouses who
  also work for the Company.

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Sources

• http//www.southwest.com/about_swa/?refabtsw_gn
• http//www.southwest.com/about_swa/press/factsheet
  .htmlLeadership
• http//www.swamedia.com/swamedia/factsheet.html
• http//www.clomedia.com/content/templates/clo_case
  studies.asp?articleid257
• http//ocw.mit.edu/NR/rdonlyres/