SWA Happenings (Pass the time before Mar DB)

[chase]

Some of this has been published recently on things within Southwest that should bode well for new hires coming our way. Southwest is fortunate to have many things going for it, mostly however it is due to the outstanding folks (except for a few slugs like me that make you good guys look even better!) that we're hiring and the idea that increasing efficiency and productivity is a never ending pursuit....the stories below show how that tradition is continuing:

Engine Modifications

• -300/500 engines are being made more efficient (thanks to new blades & enginve vanes) thereby increasing fuel efficiency (+1.8%) = $18,000 dollars savings per engine per year thanks to more time between mx visits....when all 355 engines are modified savings will be $6.3 M annual savings
• same engines will have EGT reduced by 29 degrees thanks to new design of blades & vanes (see above)...this will reduce visits to mx shop enough to allow engines to fly 2.25 years more at producing revenue before having to come off the line for major overhaul

Efficiencies

• 85 employees per airplane 2003, 74 employees per airplane end of Dec '04
• Renewed insurance policies for 8% year over year premium reduction despite our growth
• Processed 75 Plane Smart Business (program to streamline suggestions to save money on any level of Southwest operations, not just pilots) proposals by pilots with $1.2m savings
• $20M earned with charter flights
• Carried 81m customers, just shy of 1 million flight operations
• Reduced fuel burns from 735 to 690 gallons per hour
• All fleet burn has seen a reduction of almost 20 gallons per block hour
• Gate services (ground power vs. APU running) saves $18 per 25 minute turn

Growth

• 4Q04 Southwest exercised 3 options for 2006 deliver of aircraft...firm orders now stand at 26, options at 8 for 2006....if all goes well that will be 34 aircraft for '06....combined with retirements/medicals that would equate to around 500+ pilots in '06!!!!
• 810 new Flight Attendants, 9 classes
• Interviewed 1,054 pilots, hired 400
• 234 CA upgrade classes
• Professionally organized 84 retirements with class!
• PD received 225,895 resumes, conducted 26,078 interviews, hired 1,706 (1210 of these new folks were pilots/FAs...company looked to hire from within where they could to save even more money!)
• 7th sim ordered, delivery Apr 2006; training center expansion on track will take Soutwest to 2010, construction to begin soon, occupancy in Jan '06

Benefits to the employees in 2004

• Total assets in 401K plan equals $1.2B & $1.8B in the profitsharing---ALL OF THIS MONEY BELONGS TO THE EMPLOYEE & NOT LOST IF BANKRUPTCY (hate using that word but it makes the point about defined contribution versus defined benefit programs)
• 598 "free classes" offered by Southwest for 4,544 employees; computer, career, personal development classes offered throughout the system
• Both spouses in 1,039 marriages work for the "LUV" airline....2078 happy folks (I hope!!)Contributed $67.4M to 401K participants
• Implemented new Turbulence program (thanks Northwest Airlines) to better defend against unexpected bumps...reducing FA injuries, saving money on OJI but more importantly keeping our most important resources, FAs, safe!

POS (Positively outrageous service) to the Customers

• 58.6 million phone calls to reservation agents instead of a computer
• Did not strand a single customer for lack of pilots!!! Way to go scheduling & flt ops!
• Did not cancel a -200 sortie for currency issue
• Southwest Airlines is the nation's largest carrier in terms of scheduled domestic departures...59 cities & 31 states (soon PIT!)

Gary Kelly has said it clearly though....too many seats chasing too few passengers. Southwest passengers flew 3% farther per trip in 2004 than 2003 but they actually paid 1.8% less than the previous year!!!

Fuel hedging is no doubt a linchpin to the company's financial success recently but so are the people in every department who are doing their part to stay focus on saving money but still providing what our customers deserve...the Freedom to Fly safely, on time and with their bags....hopefully we can continue to do that, thanks to those current employees who are making it happen & for those wishing to come here....roll your sleeves up & prepare to work!!!! Good luck regardless of your avaition career & pursuits.

p.s...March line has 14 work days +1 day of commuting to MDW, 16 days off for 83hrs & 104.9 trips for pay....company is hoping more folks fly to move monthly average from 65 hrs per pilot to 70....3 kids in college is my motivation, yikes!!!!

 

[Broadway]

Chase, as always, a tremendous thanks for the SWA info/gouge. Your last post is a great primer for "Why I want to fly for SWA when I grow up." From someone who is an often reader and seldom poster, any gouge from the burning bush regarding the many SWA rumors wrt interview/hiring trends for the remainder of the calendar year? Thanks again.

 

[chase]

Glad the info is helpful....Southwest is doing well but none of us can take that for granted obviously. Our revenue needs to increase to make us attractive to investors but some fallout from other carriers is going to need to occur before the seats vs. customers issue trends toward a positive for revenue trends.

Southwest is still looking for airplanes to lease (probably -300s) or -700s to buy or lease....did see where USAir announced a reduction in their aircraft inventory (leasing company taking back 11 aircraft) due to new scheduling efficiencies announced recently...this reduced their leasing payments & put 11 airplanes back into someone's inventory. Are they in good enough shape for Southwest to lease & add to our stable of 420+ airplanes? Who knows but I'm sure someone is asking about them. Never say never in the game of finding airplanes....managing expectations is a huge endeavor and right now I believe it is wise to keep expectations low and deliver more down the road. Confirmed one class for March (a friend returning to the line in that one), heard there is a 2nd one penciled in later in the month & one for April but until bodies are called for those I wouldn't quit the day job....good luck!!!

 

[CaptUnderpants]

Great info as usual Chase. Any word yet on the time frame for the March DB? I am anxiously waiting and glad that February only has 28 days.

Thanks,
CU

 

[chase]

I've seen on here 9 Mar...it usually falls on a Tues or Wed..9 Mar is a Wed...either then or a week later. I'm sure they are trying to finish up all the background checks as quickly as they can to get the waiting over with for everyone....can't confirm it, will hopefully see some folks the next time I'm in to confirm...regardless, good luck & hope it works out for you!! BTW, thanks for applying!