Professional Documents
Culture Documents
The Companys Investor Day presentations and slides contain forward-looking statements within the meaning of Section 27A
of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forwardlooking statements are based on, and include statements about, the Companys estimates, expectations, beliefs, intentions, and
strategies for the future, and are not guarantees of future performance. Specific forward-looking statements can be identified by
the fact that they do not relate strictly to historical or current facts and include without limitation statements related to (i) the
Companys financial goals, strategies, expectations, opportunities, and outlook, and its projected results of operations; (ii)
factors and assumptions underlying the Companys financial outlook and projections; (iii) the Companys fleet plans and
strategies, including its fleet modernization initiatives, and the Companys related financial and operational expectations; (iv)
the Companys growth plans, strategies, and opportunities, including its network and capacity plans, opportunities, and
expectations; (v) the Companys plans and expectations with respect to its new reservation system and other technology
initiatives, and the Companys related multi-faceted financial and operational expectations and opportunities; and (vi) the
Companys construction initiatives and related financial and operational expectations. Forward-looking statements involve
risks, uncertainties, assumptions, and other factors that are difficult to predict and that could cause actual results to vary
materially from those expressed in or indicated by them. Factors include, among others, (i) changes in demand for the
Companys services and other changes in consumer behavior; (ii) the impact of economic conditions, fuel prices, actions of
competitors (including, without limitation, pricing, scheduling, and capacity decisions and consolidation and alliance
activities), and other factors beyond the Companys control, on the Companys business decisions, plans, and strategies; (iii) the
Companys dependence on third parties, in particular with respect to its fleet and technology plans; (iv) the impact of
governmental regulations and other governmental actions related to the Companys operations; (v) the Companys ability to
timely and effectively implement, transition, and maintain the necessary information technology systems and infrastructure to
support its operations and initiatives; (vi) the Companys ability to timely and effectively prioritize its initiatives and related
expenditures; (vii) the Companys ability to maintain positive relations with employee and employee representatives and any
related pressure on the Companys labor costs; and (viii) other factors, as described in the Company's filings with the Securities
and Exchange Commission, including the detailed factors discussed under the heading "Risk Factors" in the Companys Annual
Report on Form 10-K for the fiscal year ended December 31, 2015.
2
Gary Kelly
Chairman of the Board, President, and Chief
Executive Officer
Tammy Romo
Executive Vice President and Chief Financial
Officer
Our outlook for 2016 supports strong returns and healthy cash flows
5
16%
$2,100
$1,800
12%
Net margin
$1,500
10%
$1,200
8%
$900
6%
$600
4%
$300
2%
$-
0%
2011
2012
2013
2014
2015
(40.0)
26.4
93.0
73.5
68.6
Net margin
Net income
(in millions)
14%
Net income 1
Y/Y %
Change
Our profits and margins have dramatically improved over the past five years,
as planned, from a successful implementation of our strategic initiatives
1Excludes special items.
Note: See reconciliation of reported amounts to non-GAAP financial measures.
34%
32.7%
AirTran integration
International
Network optimization
30%
26%
21.2%
22%
18%
13.1%
14%
10%
6.8%
7.2%
2011
2012
2013
2014
2015
(3.5)
0.4
5.9
8.1
11.5
6%
Y/Y Pt.
Change
1ROIC is defined as annual pre-tax return on invested capital, excluding special items.
Note: See reconciliation of reported amounts to non-GAAP financial measures.
32.7%
Consumer Discretionary
30%
Transports
U.S. Airlines
23.7%
Southwest Airlines
23.7%
18.3%
20%
15.9%
10%
0%
Southwest not only exceeded the U.S Airlines, Transports, and Consumer
Discretionary returns, but more than doubled the S&P 500
Source: Third party investment firm.
1Southwest ROIC is defined as annual pre-tax return on invested capital, excluding special items, for the last twelve months. For all others, the standardized ROIC calculation methodology equal to (EBIT + Rent Expense) / Average
Invested Capital. Invested Capital = Total Debt + Shareholder Equity + Preferred Equity + Noncontrolling Interest + Capitalized Rent. Rent capitalized at 7.0x for industrial companies and 8.0x for consumer discretionary companies;
Excludes annual individual constituent company ROICs of greater than 100% or less than (100%).
2U.S. Airlines includes AA, UA, DL, AS, B6, HA, VX, NK and G4, and excludes Southwest.
10
Investment
grade rating by
all three agencies
Returned
approximately
$1.3 billion to
Shareholders thus
far in 2016
11
High liquidity
(in billions)
(in billions)
(in billions)
$5.0
$4.0
$10.0
Revolver
$8.0
NPV of
Aircraft rents
Debt
$3.5
$3.2
$2.9
$3.0
$7.4
$2.5
$2.5
$2.1
$3.0
$6.0
$2.0
$1.6
$2.0
Cash and
short-term
investments
$1.0
$1.5
$4.0
$1.4
$3.4
$1.0
$2.0
$0.5
$-
$-
$Total liquidity
Equity
Debt
12
Note: As of March 31, 2016, unless otherwise noted.
Investment grade
S&P/ Fitch
B-
B+
BB-
BB
BB+
BBB-
BBB
BBB+
A-
Moodys
B3
B2
B1
Ba3
Ba2
Ba1
Baa3
Baa2
Baa1
A3
Source: For DAL Moodys rating, Moodys press release dated February 11, 2016. For all other ratings, Bloomberg as of June 17, 2016. Moodys Senior Unsecured rating used (if unavailable, Long Term Corporate Family rating used); S&Ps
Long-term Issuer rating used; Fitchs Senior Unsecured rating used (if unavailable, Long-term Issuer rating used).
13
(in millions)
$700
$600
Convertible notes
Bullet maturities
Amortizing debt
$765
$628
1
$110
$541
$536
$500
$500
$400
$527
$300
$300
$300
$285
$300
$427
$200
$100
$100
$218
$241
2016
2017
$285
$236
$265
2019
2020
$-
1We
estimate the convertible notes will be settled for $68 million and 6 million shares.
Note: As of March 31, 2016.
2018
2021-2031
14
Aircraft capex
(in billions)
(in billions)
$2.5
Other
Facilities
Technology
AC Capex
Restructured
order book
deferred $1.9B
$2.0
$1.5
$1.0
$0.5
$2016
2016
2017
2018
2019
2020
80
60
61
59
40
36
35
34
30
25
24
24
20
0
2016
Options
1The
2017
2018
18
2019
2020
2021
2022
2023
2024
2025
2026
2027
18
19
23
23
36
36
36
Company has flexibility to substitute 737-7 in lieu of 737-8 firm orders beginning in 2019 and options beginning in 2021.
seven 737-800s and thirteen 737-700s delivered as of March 31, 2016.
2Includes
16
80
67
61
60
40
41
40
34
29
20
0
2016
Options
1The
2017
2018
15
14
14
15
2019
2020
2021
2022
2023
2024
2025
2026
2027
18
19
23
23
36
36
23
18
Company has flexibility to substitute 737-7 in lieu of 737-8 aircraft beginning in 2019.
thirteen 737-800s and nineteen 737-700s delivered as of June 23, 2016.
2Includes
17
$1,600
Share repurchases
$1,400
Dividends
$5.0B
Returns to
Shareholders
$1,200
$1,000
$800
$600
$400
$200
$0
2011
2012
2013
2014
2015
YTD
20162
cash flow is calculated as operating cash flows less capital expenditures less assets constructed for others, net.
repurchases and dividends paid are year to date through June 23, 2016; free cash flow is illustrative beyond actual free cash flow for the 3 months ended March 31, 2016 of $1,177 million.
Note: See reconciliation of reported amounts to non-GAAP financial measures.
2Share
18
(in billions)
United
$0.3
$0.5
$0.3
American
$0.7
$0.9
$0.9
$0.4
$0.2
$0.7
$0.6
$0.5
<$0.1
<$0.1
$0.1
$0.1
$0.1
Delta
Southwest
$0.6
$0.2
<$0.1
<$0.1
<$0.1
<$0.1
<$0.1
<$0.1
$0.1
<$0.1
<$0.1
<$0.1
<$0.1
$0.3
$0.1
$0.8
$1.0
$0.3
$0.1
<$0.1
<$0.1
$0.2
JetBlue
Alaska
$0.1
$0.1
Hawaiian
<$0.1
<$0.1
<$0.1
<$0.1
<$0.1
$0.1
$0.3
$1.2
$1.2
$4.1
$0.4
$1.4
$2.6
$0.4
$0.6
$1.1
$1.4
<$0.1
$0.1
$0.1
$0.2
$0.1
$0.2
$0.4
$0.6
<$0.1
<$0.1
Spirit
$0.1
Allegiant
<$0.1
USAir
<$0.1
Northwest
0 90
91
92
93
94 5 95
96
$0.1
$0.5
$0.4
97
98
Dividend Only
$0.1
<$0.1
$0.1
<$0.1
$0.1
$0.2
$0.1
$0.1
99 10 00
01
02
03
04 15 05
06
07
08
09 20 10
11
12
13
14 2515
19
20
0.1%
-2%
-4.1%
-5%
-7.3% -7.0%
-8%
-11%
-10.5%
-14% -13.8%
-6.5%
-6.1%
-3.7%
21
No Hidden Fees1
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Apple
Alphabet (Google)
Amazon
Berkshire Hathaway
Walt Disney
Starbucks
Southwest Airlines
Federal Express
Nike
General Electric
Low Fares2
Hidden fees determined by having bag and reservation change/cancellation fees per domestic passenger below the industry average, as determined by Bureau of Transportation Statistics for the year ending December 31, 2015.
fares defined by having an average domestic fare below the industry average US domestic fare, as determined by data from the Department of Transportation O&D survey for the year ending December 31, 2015.
and second checked pieces of luggage, size and weight limits apply.
4There are never change fees, though fare differences might apply.
2Low
3First
22
+91%
2010
2011
2012
2013
2014
95%
130%
2015
23
+$1.7 billion
+111%
Jan-11
Jan-12
Jan-13
Jan-14
Jan-15
Jan-16 May-16
2011
2012
2013
2014
2015
2016F
Rapid Rewards has grown +111% in Members and $1.7 billion in revenue
since the program relaunch
24
Phoenix
41%
30%
20%
Market share
34%
14%
10%
DC/BWI Area
(BWI, DCA, IAD)
32%
Denver
35%
26%
25%
17%
Bay Area
15%
Las Vegas
Chicago
(MDW, ORD)
36%
32%
22%
11%
LUV
OA #1
OA #2
11% 10%
25
737 Range
26
1Extra-bilateral
27
8.60
Fleet modernization
8.40
Accelerated depreciation
8.20
8.00
7.80
7.60
7.40
7.20
Y/Y %
Change
2011
2012
2013
2014
2015
0.0
4.2
2.3
3.1
0.1
28
Note: See reconciliation of reported amounts to non-GAAP financial measures.
12.00
Southwest
(in cents)
10.00
8.00
6.00
4.00
2.00
2000
2015
While the gap to the industry has contracted over the past 10 years, we
are committed to preserving a meaningful competitive cost advantage
Source: DOT form 41 and T100 data, through December 31, 2015. Stage-length adjusted for Southwests average stage-length, represents domestic mainline.
1Industry airlines: AA, AQ, AS, B6, CO, DH, DL, F9, FL, G4, HA, HP, NK, NW, TW, TZ, UA, US, WN, VX,YX and excludes Southwest.
29
Unit costs
681
704
13.42
665
13.18
Aircraft
12.86
12.43
12.68
145
146
CASM
694
698
12.47
12.29
12.38
141
11.17
136
134
Classics
700s
800s
2011
2012
2013
2014
2015
2011
2012
2013
2014
2015
The increase in the seat gauge of our aircraft drives down unit costs
30
Note: See reconciliation of reported amounts to non-GAAP financial measures.
Fuel efficiency
Fuel saving initiatives
74
72.7
73
71.7
72
71
70
69
69.4
68.4
68
67
66
65
Y/Y %
Change
2011
2012
2013
2014
2015
(0.2)
1.5
3.3
1.5
1.6
1Based
on the Companys existing fuel derivative contracts and market prices as of June 20, 2016.
Capital Efficiency
$500M ASR launched May 2016
Operating Margin
Cost Control
~2% increase in 2Q16 CASM ex-fuel,
profitsharing & special, Y/Y
~1% increase in FY16 CASM ex-fuel,
profitsharing & special Y/Y
$1.80 to $1.85 per gallon range for 2Q16
economic fuel2
$1.95 to $2.00 per gallon range for annual
2016 economic fuel2
1ROIC
2Based
32
Non-GAAP Reconciliation
(in millions)
Year Ended
Operating income, as reported
Add (Deduct): Net impact from fuel contracts
Add: Asset impairment1
Add: Acquisition and integration costs 2
Add: Union contract bonuses
Deduct: Litigation settlement
Deduct: Special revenue adjustment3
Operating Income, non-GAAP
4
84
(134)
1,117
10,431
434
10,865
ROIC, pre-tax
129
(107)
861
12,439
184
12,623
10.3%
Year Ended
2010
2011
2012
2013
2014
2015
$
988 $
693 $
623 $ 1,278 $ 2,225 $ 4,116
172
32
84
28
(323)
14
7
132
183
86
126
39
9
334
(37)
(172)
$ 1,167 $
839 $
838 $ 1,448 $ 2,388 $ 3,957
6.8%
117
(36)
919
12,580
145
12,725
7.2%
143
(60)
1,531
11,664
50
11,714
13.1%
133
(62)
2,459
11,470
104
11,574
21.2%
114
(124)
3,947
11,037
1,027
12,064
2010
459
2011
178
2012
421
2013
754
2014
1,136
2015
2,181
251
373
(21)
21
(221)
(103)
(11)
33
42
11
(9)
171
35
(10)
87
24
(251)
(52)
4
(31)
9
85
73
112
2
54
(104)
79
550
330
417
805
(42)
24
(23)
210
(108)
2,355
32.7%
6
1,397
Year Ended
Operating revenues, as reported
2010
2011
2012
2013
2014
2015
$ 12,104 $ 15,658 $ 17,088 $ 17,699 $ 18,605 $ 19,820
(172)
$ 12,104 $ 15,658 $ 17,088 $ 17,699 $ 18,605 $ 19,648
Amounts net of profitsharing impact on charges incurred through March 31, 2011. Pursuant to the terms of the Companys ProfitSharing Plan,
acquisition and integration costs w ere excluded from the calculation of profitsharing expense from April 1, 2011, through Dec. 31, 2013. These
costs, totaling $385 million, are being amortized on a pro rata basis as a reduction of operating profits, as defined by the ProfitSharing Plan, from
2014 through 2018, in the calculation of profitsharing. In addition, acquisition and integration costs incurred during 2014 and future periods w ill
reduce operating profits, as defined, in the calculation of profitsharing.
3
The Company recorded a special revenue adjustment during third quarter 2015 of $172M related to its amended co-branded credit card agreement
w ith Chase Bank USA, N.A.
4
Net adjustment related to presumption that all aircraft in fleet are ow ned (i.e., the impact of eliminating aircraft rent expense and replacing w ith
estimated depreciation expense for those same aircraft).
Average Invested Capital is an average of the five most recent quarter end balances of debt, net present value of aircraft leases, and equity
adjusted for hedge accounting.
33
Non-GAAP Reconciliation
(in millions)
2010
$ 3,296
324
2011
$ 5,580
64
(in millions)
Net cash provided by operating activities
Capital expenditures
Assets constructed for others
Reimbursement for assets constructed for others
Free cash flow
2014
2015
$ 5,321 $ 3,362
(28)
254
(in cents)
CASM, excluding special items, as reported
Add: CASM impact from fleet modernization
CASM, excluding special items and impact of fleet modernization
Year Ended
2012
2013
$ 5,963 $ 5,645
157
118
2011
12.29
12.29
Year Ended
2012
2013
2014
12.68
12.47
12.38
0.18
0.71
1.04
12.86
13.18
13.42
Year Ended
2011
2012
2013
1,356
2,064
2,477
(968)
(1,348)
(1,433)
(14)
$
388 $
716 $ 1,030 $
2014
2,902
(1,748)
(80)
27
1,101 $
2015
11.17
1.26
12.43
2015
3,238
(2,041)
(102)
24
1,119
Three Months
Ended March 31,
2016
1,616
(438)
(11)
10
$
1,177
Amounts net of profitsharing impact on charges incurred through March 31, 2011. Pursuant to the terms of the Companys ProfitSharing Plan, acquisition and integration costs w ere excluded
from the calculation of profitsharing expense from April 1, 2011, through Dec. 31, 2013. These costs, totaling $385 million, are being amortized on a pro rata basis as a reduction of operating
profits, as defined by the ProfitSharing Plan, from 2014 through 2018, in the calculation of profitsharing. In addition, acquisition and integration costs incurred during 2014 and future periods w ill
reduce operating profits, as defined, in the calculation of profitsharing.
2
Net of profitsharing impact.
34
Randy Sloan
Senior Vice President and
Chief Information Officer
Point-to-point interfaces
Fully integrated
Expensive to modify
Configurable
Limited capabilities
Expanded capabilities
37
Why Amadeus
Functional capability
Technical strength
Implementation success
Market leadership
Commercial terms
Similar cultures
38
R1 Sell
Late 2016
New
Reservation
System
R2 Operate
1H 2017
R3 Enhanced capability
2H 2017
Continuous improvement
Key Characteristics
Andrew Watterson
Senior Vice President Network and Revenue
Schedule variation
Increased days of inventory
Redeyes
Improved connection times
New
Reservation
System
IROPS automation & optimization
Mobile enhancements at airport
Standby capability & policy
improvements
Net benefit
R3 ~$200M EBIT1
Beyond R3 At least $500M
EBIT run rate by 2020
41
1EBIT
2005
42
Pre AirTran
Acquisition
43
Post AirTran
Acquisition
44
Today
45
Daily Flights
46
Source: US DOT O&D Passenger Survey YE 4Q 2015 for domestic data
11
11
BOS
CLT
DCA
DFW
JFK
LAX
LGA
MIA
ORD
PHL
PHX
ATL
BOS
CVG
DTW
JFK
LAX
LGA
MSP
RDU
SEA
SLC
7
DEN
EWR
IAD
IAH
LAX
ORD
SFO
4
BOS
FLL
JFK
MCO
2
PDX
SEA
HNL
DEN
SFO
DEN
47
Date: June 13, 2016
9
7
3
Source: US DOT O&D Passenger Survey YE 4Q 2015 for domestic data and PaxIS YE Feb16 for intl data, via Diio
Note: BUR/LAX/LGB/ONT/SNA, BWI/DCA/IAD, DAL/DFW, EWR/JFK/LGA, FLL/MIA/PBI, HOU/IAH, MDW/ORD and OAK/SFO were combined and counted as a single metro
48
2006
2015
19 carriers
1%
0%
13 carriers
Other
5%
2% 1% 0%
Other
5%
7%
6%
4%
12%
8%
47%
8%
61%
13%
9%
11%
Over the past decade, Southwest has added 28 destinations resulting in a total
of 62 destinations (including four seasonal)
49
Source: US DOT O&D Passenger Survey YE 4Q 2006 and YE 4Q 2015 for domestic data. YE 4Q 2015 AA and US were combined.YE 4Q 2006 US and HP were combined.
Depth
Connecting
Dots
Depth
Connecting Dots
New Dots
New Dots
BNA
6-7x
Nov 16
BOS
9-10x
Sep 16
DAL
3-4x
Aug 15
DEN
4-5x
Apr 16
DTW
3-4x
Nov 16
FLL
10-11x
Nov 16
LAS
5-6x
Apr 16
LAX
2-3x
Apr 16
ORF
4-5x
Apr 16
ROC
2-3x
Aug 16
SEA
Year-round
Mar 15
MSP
2x
Apr 16
SJC
1x
Nov 16
SJD1
Sat only
Jun 15
SMF
1x
Aug 16
LIR
Sat only
Nov 15
SJO
1x
Mar 15
50
1Seasonal
service.
WN
313.4
AA
226.1
DL
215.7
OO
145.3
EV
126.4
UA
122.9
B6
68.6
AS
42.4
NK
32.6
F9
20.8
HA
18.5
VX
16.0
52
Note: Domestic flight count is visually depicted by size of circle for each Carrier/Station within map.
53
1Q 2013-2016
1Q 2013-2016
4,000
3,500
3,000
3,016
3,084
3,372
3,511
120
90%
100
85%
80
80%
60
2,000
80.1%
40
65%
1,000
20
60%
2014
2015
2016
Enplaned
2013
2014
2015
2016
26.2M
27.8M
31.6M
33.9M
Aircraft utilization
1Q 2013-2016
16
15
80.6%
70%
1,500
2013
14.8
14.7
15.2
15.4
14
13
12
11
10
2013
only
79.3%
75%
2,500
1WN
77.2%
2014
2015
2016
800
700
600
500
400
300
200
100
0
679
568
590
40
54
92
714
111
384
399
455
484
144
137
132
119
2013
2014
2015
2016
-800s
-700s
Classic
(-300/-500)
54
1Q 2013-2016
1Q 2013-2016
100%
90%
90%
80%
73.4%
82.8%
78.8%
85.3%
85%
79.9%
80%
75%
70%
68.6%
70%
60%
65%
50%
60%
2013
84.1%
83.1%
2014
2015
2013
2016
2014
1Q 2013-2016
1Q 2013-2016
5.20
5
4
3.57
3.26
2.91
2
1
0
2013
2014
2015
2016
80%
75%
70%
65%
60%
55%
50%
45%
40%
2015
2016
72%
68%
65%
58%
2013
2014
2015
2016
55
Focus
Fleet
Modernization
Delivering
Excellent
Customer
Service
Improving
recoverability with
new passenger
reaccommodation
capabilities
The Baker
Enhancing turn
communication
Improving
Productivity
New maintenance
system enabling
better inventory
management &
planning
Enhanced staff
management at
Airport
Transition to
paperless
Empowered,
Engaged &
Informed
Employees
Advancing
capabilities for our
employees through:
Self-service
scheduling for
Airport Employees
& Maintenance
Mobility
Crew Scheduling
Enhancing
Reliability
Flight schedule
simulation
Improved gate
management tools
Cargo Management
Aircraft health
management
system
Performance weight
& balance
56
Planned improvements
Fleet modernization through retirement of the Classic fleet will aid the Operation
as less efficient Classic aircraft are removed from the system
System ontime performance
90%
85%
86.2%
89.0%
120%
84.1%
81.3%
100%
80%
80%
75%
60%
70%
40%
65%
20%
60%
0%
Classics
-700s
-800s
90.6%
81.5%
Classics
System
-700s
99.0%
Classic Retirement
-800s
85%
81.5%
82.2%
80.1%
80%
75%
72.9%
70%
65%
60%
Classics
-700s
-800s
System
800
700
600
500
400
300
200
100
0
679
714
568
40
590
54
92
111
384
399
455
484
144
137
132
119
2013
2014
2015
2016
-800s
-700s
Classic
(-300/-500)
57
1WN
only
Heart Interior
Our new Heart interiors will come standard on all new -800s. The seating capacity
remains at 175, and seat location is virtually the same as current 737-800 aircraft.
Classic Retirement
Recessed windows give the look and feel of more interior space, new carpet gives a clean feel,
and a new silver bulkhead proudly displays our Heart
The new seat is the widest economy seat in the 737 market and features:
an adjustable headrest
a lower profile armrest
advanced lumbar support
58
1WN
only
Focus
Fleet
Modernization
Delivering
Excellent
Customer
Service
Improving
recoverability with
new passenger
reaccommodation
capabilities
The Baker
Enhancing turn
communication
Improving
Productivity
New maintenance
system enabling
better inventory
management &
planning
Enhanced staff
management at
Airport
Transition to
paperless
Empowered,
Engaged &
Informed
Employees
Advancing
capabilities for our
employees through:
Self-service
scheduling for
Airport Employees
& Maintenance
Mobility
Crew Scheduling
Enhancing
Reliability
Flight schedule
simulation
Improved gate
management tools
Cargo Management
Aircraft health
management
system
Performance weight
& balance
59
OTP
Hercules
Thor
Jonas
Olympia
Petros
29.4%
60.8%
72.7%
74.2%
73.2%
60
Focus
Fleet
Modernization
Delivering
Excellent
Customer
Service
Improving
recoverability with
new passenger
reaccommodation
capabilities
The Baker
Enhancing turn
communication
Improving
Productivity
New maintenance
system enabling
better inventory
management &
planning
Enhanced staff
management at
Airport
Transition to
paperless
Empowered,
Engaged &
Informed
Employees
Advancing
capabilities for our
employees through:
Self-service
scheduling for
Airport Employees
& Maintenance
Mobility
Crew Scheduling
Enhancing
Reliability
Flight schedule
simulation
Improved gate
management tools
Cargo Management
Aircraft health
management
system
Performance weight
& balance
61
Focus
Fleet
Modernization
Delivering
Excellent
Customer
Service
Improving
recoverability with
new passenger
reaccommodation
capabilities
The Baker
Enhancing turn
communication
Improving
Productivity
New maintenance
system enabling
better inventory
management &
planning
Enhanced staff
management at
Airport
Transition to
paperless
Empowered,
Engaged &
Informed
Employees
Advancing
capabilities for our
employees through:
Self-service
scheduling for
Airport Employees
& Maintenance
Mobility
Crew Scheduling
Enhancing
Reliability
Flight schedule
simulation
Improved gate
management tools
Cargo Management
Aircraft health
management
system
Performance weight
& balance
62
Focus
Fleet
Modernization
Delivering
Excellent
Customer
Service
Improving
recoverability with
new passenger
reaccommodation
capabilities
The Baker
Enhancing turn
communication
Improving
Productivity
New maintenance
system enabling
better inventory
management &
planning
Enhanced staff
management at
Airport
Transition to
paperless
Empowered,
Engaged &
Informed
Employees
Advancing
capabilities for our
employees through:
Self-service
scheduling for
Airport Employees
& Maintenance
Mobility
Crew Scheduling
Enhancing
Reliability
Flight schedule
simulation
Improved gate
management tools
Cargo Management
Aircraft health
management
system
Performance weight
& balance
63
Delivering
Excellent
Customer
Service
Improving
Productivity
Outcome
Empowered,
Engaged &
Informed
Employees
Results
Enhancing
Reliability
64
1EBIT
Jeff Lamb
Executive Vice President Corporate Services
Recently Completed
HDQ Densification & Training and Operations Support (TOPS)
Moved Managers into workstations
Culture Centers replaced individual department break rooms
Reduced square footage per Employee by 30%
66
Headquarters
Wings
Design & build a new 370,000 SF, 18 bay,
hardened Flight Training Center and a 414,000
SF six story office building. The project will
also include a parking garage adjacent to the
Wings facility and a Pedestrian Safety Bridge
tying Wings, TOPS
and HDQ.
BUDGET
Project Budget
$250M
SCHEDULE
Project Milestones
Completion
Ground Breaking
May 2016
Simulator Installs
Q2 2017
Q1 2018
67
FLL Modernization
Fort Lauderdale, Florida
FLL Terminal 1 Modernization Program
includes a 5 Gate expansion at Concourse
A, FIS (Federal Inspection Services) Facility,
and enabling projects which include
improvements to Terminal 1.
BUDGET
Project Budget
$333M
$0
SCHEDULE
Project Milestones
Substantial
Completion
Concourse A Completion
Q2 2017
Terminal 1 Modernization
Q4 2017
68
LAX Modernization
Los Angeles, California
Modernize and improve customer experience, solve building circulation problem, new security
checkpoint, new modern baggage systems, new concessions program. Ability to operate all 737-800
fleet on all 13 gates.
ON BUDGET
Project Budget
$515M
$0
ON SCHEDULE
Project Milestones
Completion
01/15/16
Q1 2017
Q2 2017
Substantial Completion
Q2 2018
69
On the Horizon
HOU Hangar Facility
HOU
PHX
We are investing in upgrades to existing hangars over the next several years
70
Break