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CNN Saturday Morning News

Southwest Airlines Maintains Full Schedule

Aired October 20, 2001 - 10:27   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: The airline industry has had to cut jobs, routes and fares since the terrorist attacks. As the airlines continue to struggle, CNN's Jen Rogers takes a look at one airline that is taking a very different approach.

(BEGIN VIDEOTAPE)

JEN ROGERS, CNN CORRESPONDENT (voice-over): Southwest Airlines has always been a little different -- no meals, no advanced seating and since September 11, no layoffs.

GARY KELLY, CFO, SOUTHWEST AIRLINES: We're operating a full schedule. We've not grounded any aircraft. We also don't want to add any aircraft in the current environment. But, you know, we're really -- we're really a people company and a people business and considering layoffs is really a last resort for Southwest Airlines, not the first step.

ROGERS: The first step, filling up Southwest's planes. But with roughly 70 percent of the carrier's flights under 500 miles, driving is a potential threat to business.

BRAD DIECE, SOUTHWEST PASSENGER: I never experienced what it would be like just to do the drive down to Los Angeles for business. And it's an option that I hadn't thought about before. Sometimes, I might drive in the future but I'll probably stick mostly to flying.

UNIDENTIFIED FEMALE: How are you?

ROGERS: Passenger loyalty is just one of the assets analysts say Southwest has in its corner.

(on-camera): Southwest's strategy of relying heavily on regional airports like this one in Burbank, California may also be encouraging passengers to return and to stay away from the crowds and long security lines at the nation's busiest airports.

(voice-over): Passenger loads are up from the depressed levels right after September 11. But many analysts say it's too early to tell what the long-term impact will be. Still, Southwest is a favorite on The Street.

RAY NEIDL, AIRLINE ANALYST: They've been around for a while. They've proven their products. By far, they have the strongest balance sheet. They have good liquidity and they've got the marketing expertise to, I think, bring the customers back fairly quickly.

UNIDENTIFIED FEMALE: Thirty-two thousand men and women...

ROGERS: In fact, Southwest was one of the first on the airwaves with a new campaign after the attacks, featuring its own employees, not one of which has been laid off in the carrier's 30-year history.

Jen Rogers, CNN Financial News, Burbank, California.

(END VIDEOTAPE)

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