Southwest Airlines Consolidates Reservations Centers

		SOUTHWEST AIRLINES JIM PARKER Jim Parker, chief executive officer of Southwest Airlines. (PRNewsFoto)[TK] DALLAS, TX USA

		SOUTHWEST AIRLINES UNVEILS NEW LOOK Southwest Airlines unveils new look. (PRNewsFoto)[TC] DALLAS, TX USA

		SOUTHWEST AIRLINES LOGO Southwest Airlines logo. (PRNewsFoto)[EM] DALLAS, TX USA

DALLAS, Nov. 4 /PRNewswire-FirstCall/ -- Southwest Airlines (NYSE: LUV) today announced the consolidation of its nine Reservations Centers into six. The move follows a steady decline in call volume over the last few years as Customers have chosen other means for booking their Southwest Airlines travel. Employees from its Dallas, Little Rock, and Salt Lake City Centers, totaling approximately 1,900, will be allowed to relocate to one of Southwest's six other Reservations Centers. The three Centers are scheduled to close on February 28, 2004. "This was a difficult decision, but one that assures that those Employees who choose to relocate can continue their careers with Southwest Airlines," said Jim Parker, Southwest's Vice Chairman and CEO. "Our superb Reservations Employees will be given the opportunity to transfer to one of our six remaining Reservations Centers, which are located in Albuquerque, Chicago, Houston, Oklahoma City, Phoenix, and San Antonio. Our desire is to balance operating costs and our Employee resources with the way our Customers choose to do business with us." Acceptance of online booking has steadily increased over the past several years. The established trend means that Customer demand can no longer support nine phone-based Centers, but it does not mean that Southwest has changed its emphasis on People. "The Employees at these three Centers have, like all of our great Reservations Employees, contributed tremendously to Southwest Airlines' well- earned reputation for Legendary Customer Service, and it is our sincere hope that these Employees will continue to deliver Southwest's personalized Customer Service at one of our six other Centers," said Colleen Barrett, Southwest's President and COO. "Our People are our greatest asset. By putting them in the right places, we can continue to have the most energetic, productive, and Customer Service focused Employees in the airline industry." For those who do not choose to relocate, a generous support package -- including cash severance pay, flight privileges, medical coverage, and guidance with a career transition -- will be offered. Southwest estimates the costs associated with consolidating its Reservations operation into six Centers in first quarter 2004 to range from $20 to $30 million. Thereafter, the potential annual operating costs savings may exceed that amount. Parker stressed, "this decision underscores our commitment to low fares, low costs, and longterm job security and Profitsharing for our Employees. Southwest has posted a profit for each quarter following the tragic events of September 11, 2001, and did not furlough any Employees. Although the travel business has changed, our desire to bring the Freedom to Fly to America is greater than ever." Southwest is now in its 32nd year of operation, serving 59 airports in 58 cities in 30 states. Based in Dallas, Southwest currently operates nearly 2,800 flights a day with a fleet of 385 Boeing 737s with an average age of nine years -- one of the youngest pure jet fleets in the domestic airline industry.