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The time is 17:39:33 and the date is 28 August 2008

New service

Southwest announced that they will be participating in Disney's Magical Express program in Orlando, FL. The program allows passengers to check their bags through from their home airport through to their rooms at a Walt Disney World resort.

Effective September 2, 2008

Daily nonstop service between Omaha, NE (OMA) and Denver, CO (DEN)
Daily nonstop service between San Francisco, CA (SFO) and Denver, CO (DEN)

Effective November 2, 2008

Daily nonstop service between Orange County, CA (SNA) and Denver, CO (DEN)
Daily nonstop service between Tulsa, OK (TUL) and Denver, CO (DEN)
Daily nonstop service between Albany, NY (ALB) and Fort Lauderdale, FL (FLL)
Daily nonstop service between Kansas City, MO (MCI) and Fort Lauderdale, FL (FLL)
Daily nonstop service between Las Vegas, NV (LAS) and Fort Lauderdale, FL (FLL)
Daily nonstop service between St. Louis, MO (STL) and Fort Myers, FL (RSW)

Discontinued service

Effective August 22, 2008

Daily nonstop service between St. Louis, MO (STL) and Los Angeles, CA (LAX)

Effective November 2, 2008

Daily nonstop service between Kansas City, MO (MCI) and Sacramento, CA (SMF)
Daily nonstop service between Oakland, CA (OAK) and Tucson, AZ (TUS)

Effective January 11th, 2009, Southwest will add 6 more flights, but will cut 196 overall. This is mainly a result of high fuel costs, the uncertainty of the economy, and the beginning months of the year traditionally being slower travel months than those preceding them. .

International service

Prior to ATA's shutdown, Southwest Airlines had set a goal to codeshare with ATA and begin international codeshare services or ticket for international flights in 2009. Destinations served by ATA could have included Canada, the Caribbean, Mexico, and Europe. In 2010, Southwest plans to partner with other carriers for transatlantic and transpacific flights. On July 8, 2008, Southwest announced that it has agreed to a comprehensive codeshare agreement with Canada's second largest carrier WestJet. The terms of the codeshare should be finalized by the end of 2009.

The Southwest Effect and codeshare agreements

The success and profitability of Southwest's business model led to a common trend being named after the company, the Southwest Effect . Since Southwest's original mission in Texas was to make it less expensive than driving between two points (in the early 1970s, during the first major energy cost crisis in the U.S.), it developed a template for entering markets at rates that allowed the airline to be profitable, yet only on the basis of lean operations and high aircraft use. The key concept to the Southwest Effect is that when a low-fare carrier (or any aggressive and innovative company) enters a market, the market itself changes, and usually grows dramatically. For example, when fares drop by 50% from their historical averages, the number of new customers in that market may not just double, but actually quadruple, or more.

Southwest has been a major inspiration to other low-cost airlines, and its business model has been repeated many times around the world. Europe's easyJet and Ryanair are two of the best known airlines to follow Southwest's business strategy in that continent (though easyJet operates two different aircraft models today). Other airlines with a business model based on Southwest's system include Canada's WestJet, Malaysia's AirAsia (the first and biggest LCC in Asia), Qantas's Jetstar (although Jetstar now operates three aircraft types) and Thailand's Nok Air.

Morris Air

One airline influenced by Southwest was Morris Air, founded by June Morris and David Neeleman, based in Utah and operating in the northwestern U.S. Southwest Airlines purchased Morris Air and absorbed the capital and routes into its inventory and service. David Neeleman worked with Southwest for a short period. When his non-compete agreement expired, Neeleman founded JetBlue Airways, a competing airline that also incorporates many principles and practices pioneered by Southwest, including building a positive, warm employee culture and operating a simple fleet.

TranStar Airlines

Southwest Airlines has mostly pursued a strategy of internal growth, rather than by acquisition of other airlines as commonly occurs. However, in addition to acquisition of Morris Air Transport (see above), Southwest did acquire competitor Muse Air in 1985, which operated McDonnell Douglas MD-80s. Muse Air was renamed TranStar Airlines.

Icelandair

In 1997, Southwest and Icelandair entered into interline and marketing agreements allowing for joint fares, coordinated schedules, and transfer of passenger luggage between the two airlines at Baltimore. Icelandair operated flights between Baltimore and Keflavik Airport in Iceland. Connecting service between several U.S. cities and several European cities appeared in the Southwest timetable The frequent flyer programs were not included in the agreement. This arrangement lasted for several years but is no longer in existence.

ATA Airlines

ATA Airlines, one of Southwest Airlines' main competitors in the Chicago market, historically operated out of Midway Airport alongside Southwest. ATA declared bankruptcy, and in 2004, Southwest injected capital into ATA that (among other things) would have resulted in Southwest's 27.5% ownership stake in ATA upon their exit from Chapter 11 bankruptcy proceedings.

In a departure from its traditional "go it alone" strategy, Southwest entered into its first domestic codesharing arrangement with ATA, which enabled Southwest Airlines to serve ATA markets in Hawaii, Washington D.C., and New York City.

In late 2005, ATA secured $100 million in additional financing from the firm of Matlin Patterson, and Southwest's original deal with ATA was modified such that Southwest no longer retained the 27.5% stake (or any other financial interest) in ATA. The codeshare arrangement expanded to include all of ATA's 17 destinations and all of Southwest's 63 destinations. In 2006, Southwest's pilot union approved a codeshare sideletter to their contract with limitations on the growth of this and other codeshare agreements. While these restrictions today are minor, outsourcing remains a growing concern in the union's current contract negotiations.

During 2006, Southwest Airlines began marketing ATA only flights. ATA's dependence on the Southwest network continued to grow in 2006, and at the time of ATA's demise in April 2008, the airline offered over 70 flights a week to Hawaii from Southwest's hubs in PHX, LAS, LAX, and OAK. Additional connecting service was available to many other cities across the United States. Plans had been announced for ATA to offer exclusive international service for Southwest by 2010, but were scratched when ATA abruptly ended operations on April 3, 2008. There was no plan to open the ATA/Southwest codeshare to ATA's sister carriers; North American Airlines or World Airways, even though they are co-owned by the same corporate entity created from ATA Holdings.

The ATA/Southwest codeshare was terminated when ATA filed for Chapter 11 bankruptcy on April 3, 2008. As of 4:00 A.M. EDT on April 3, ATA discontinued all operations.

WestJet Airlines

On July 8, 2008, Southwest Airlines officially announced the intent to begin a codeshare agreement with WestJet Airlines of Canada. The agreement would eventually include the ability of customers to purchase tickets on each others websites, as well as the synching of flights between Canada and the US. The partnership will be finalized by late 2009..

Corporate culture

Southwest experience

Tickets cannot be purchased through common online venues like Orbitz or Travelocity; a minority are booked through travel agents. Most of Southwest's tickets are issued directly by the airline over the phone or online at the company's website which features Web-only fare discounts.

Unlike other major airlines, Southwest allows passengers to change reservations without additional cost. While this provides flexibility to customers, Southwest does not allow same-day standby travel on a different flight (usually a free service at other airlines) without upgrading to maximum fare.

Boarding area at a gate at Orlando International Airport

Customers are not assigned seats; rather, they are assigned to one of three "boarding groups" depending on their check-in time (earlier check-ins get to board earlier), and are left to choose their own seats on the plane, which helps the airline to board passengers faster. At the May 2006 shareholders meeting, Southwest management announced a study of potentially adopting an assigned-seating system in 2008, as part of a reservations-technology overhaul now under way. As of November 8, 2007 Southwest has implemented an update to their Boarding Procedure in which passengers are now assigned their Boarding letter (A, B or C) along with a number which provides them a specific plac

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