As we integrated our ticketing and reservation processes, the boarding pass was left manual. So until 2003, all customers would queue up in the gate area and exchange their boarding passes. Then we began distributing boarding passes from multiple points in an airport. Later, we added boarding-pass generation via Southwest.com. Now we have self-service kiosks, and were adding functionality to those units this year. So thats what I mean when I say, were behind. It was a choice that we made up until 2003, to keep our operations simpler.
But in this post 9-11 environment, with the additional security procedures that we have, customers want the convenience of being able to get their boarding passes at multiple locations and reduce the number of lines they stand in at airports. That became important for us, to meet those needs from a customers perspective and remain competitive. It has the added advantage of being more cost-effective, because we dont need as many customer service agents.
Q. Are you catching up?
A. Our airport operations have gone through dramatic change since 9-11, with numerous additional security procedures heaped on our people, where we had to staff up even more to handle that. Now weve gotten more and more efficient. The federal government has taken over most of the checkpoint operations. Were finding that the hiring requirement at the airports is dramatically reduced.
Q. What else tells you that youre becoming more efficient?
A. One statistic is the number of people per aircraft. We peaked at about 95 employees per aircraft around 2000 or 2001. Our target, historically, has been around 80. Today, were down to around 73 or 74.
Q. What are the primary causes?
A. The primary areas of improvement have been reservations, where we need fewer reservation agents per aircraft, and the airports, where we need fewer customer service agents per aircraft. That again flows from more customer self-service.
Q. After you became CEO, how long was it before you decided that CIO Tom Nealon would report directly to you?
A. I dont think I ever really had a thought that he would report anywhere else. I think it makes sense to organize around peoples strengths and not make things unnatural. Ive got a different background than [predecessor] Jim Parker and a different background than Herb Kelleher. Technology was reporting to me at the beginning of 2001; we had sponsored a great deal of change in the technology organization and in the technology that was deployed throughout Southwest from 2001 to 2004. And I didnt want to interrupt the momentum that we had. Tom Nealon and I have an outstanding relationship. Hes a very fine Southwest officer. Were very proud of his accomplishments as well as those of the entire technology group.
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