{ "docId": "019dd923-622c-750b-8b9c-af07f88d0859", "docSlug": "90d0f8b0e95b", "documentTitle": "Southwest Airlines (LUV)", "authorId": "02_Elliott_Management", "authorName": null, "documentKindSlug": "regulatory-filing", "documentKindLabel": "Regulatory filing", "sourceTypeSlug": "activist_investor", "sourceTypeLabel": "Activist investor", "presentationDate": "2024-10-22 00:00:00", "orientation": "portrait", "aspectRatio": 0.77272725, "pageNumber": 19, "pageCount": 24, "prevPage": 18, "nextPage": 20, "slideType": "quote_slide", "function": "summarize", "density": "overcrowded", "nDataPoints": 0, "notes": "Transcript format with timestamps.", "elementsJson": [ "paragraph" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9c-af07f88d0859/19", "deckHref": "/decks/019dd923-622c-750b-8b9c-af07f88d0859", "deckJsonHref": "/decks/019dd923-622c-750b-8b9c-af07f88d0859.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9c-af07f88d0859#slide-19", "components": [ { "bbox": null, "kind": "callout", "text": "I think it's interesting from Southwest, from their perspective, they've got an opportunity right now that I don't anyone has really taken advantage of.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-1ac3-70f9-8553-36dc2d30e26e", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.21, "w": 0.82, "x": 0.09, "y": 0.71 }, "kind": "paragraph", "text": "Bri (8:32) You've been in the airlines industry for over 30 years now, and you've obviously seen it evolve. What are the key changes that you've seen over the last 30 years? David (8:42) Well, I think that the most interesting changes have really happened in the last ten years. And that's really with the advent of consumer electronics and the ability for airlines to interact with the passengers differently. And it's not only airlines sending stuff to passengers, but obviously passengers interacting with the airline, whether it's how they buy their tickets, how they check in and everything else. So, I think that's really the interesting thing that has allowed some of the unbundling of products to happen. So, the fact that it is now a frictionless transaction with your cell phone to buy a seat assignment and things like that, that's allowed the industry to move to a unbundled product and basically let you buy a la carte. And that's one thing that Southwest has not done yet. There's a lot of talk about doing it. And what I would say is: don't always hold on to something because it was good to you in your past.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "245c756e-8268-4824-b0d8-7e02cfa36bb5", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.16, "w": 0.82, "x": 0.09, "y": 0.15 }, "kind": "paragraph", "text": "David (6:06) Yeah, I think the one thing that was really interesting about Virgin was we were a low-cost carrier - at the same, time we were a high-quality product, you know, especially the kind of touch and feel of our product. And what it shows is that you can be both of those things. Our low cost came from the fact that we were a very efficient operation. Our production methodologies and everything else were extremely efficient. We had highly productive crews and it's just the way we built the operation. You can decouple that from the product itself and then maybe spend a little bit more on the product. And that's what we did. You know, we had, in-flight live television - the first airline to have that. First airline to be fleet-wide Wi-Fi. Mood lighting - we invented mood lighting. It's on every airplane now, for the betterment of the world, I would say.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "4050e1bd-80bc-4112-84d7-f452552f6d4e", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.82, "x": 0.09, "y": 0.03 }, "kind": "paragraph", "text": "You have the normal startup problems, but you have it in an airline where you already have a tremendous amount of complexity. So it was, you know, it was a lot of long nights and a lot of weekends, but it was, it was awesome.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "59e57c73-14f3-4337-a345-4311c491f788", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.07, "w": 0.82, "x": 0.09, "y": 0.93 }, "kind": "paragraph", "text": "Bri (9:41) That's very Herb Kelleher of you. David (9:43) You know, these things are product features, and what you're trying to do is create the best product you can for your customer, and one that allows people to make, you know, choices themselves rather than, you know, forcing things perhaps on the customer. So, I would say that is the most fundamental change is how airlines can now interact with their passengers. And I think it's a huge opportunity for Southwest going forward.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "61e5e76c-e804-4e58-82ba-e4c5bf81040a", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.07, "w": 0.82, "x": 0.09, "y": 0.07 }, "kind": "paragraph", "text": "Bri (5:44) And I also read that you were kind of pushing the envelope in terms of its technology and in-flight entertainment offerings and offering really a differentiated customer experience. So, you were obviously very involved in understanding the strategy of what this customer experience would look like. How would you apply that to Southwest in terms of its customer experience?", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "6cc1092a-670b-4553-8b16-4000019e207c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.38, "w": 0.82, "x": 0.09, "y": 0.32 }, "kind": "paragraph", "text": "Bri (6:56) The nice music when you land, it calms everyone down. David (7:00) Yeah. So, you know, a lot of it comes from, from the virgin DNA, of course, that it attracts just very creative, innovative people. They want to be part of what Virgin was about, especially back then. And so, we kind of let them run loose. You know, we had a couple of rules, you know, don't do anything to embarrass the company. Don't do anything to embarrass the brand. Obviously, safety always comes first, so whatever, you know, crazy things you want to try, we're going to put it through the safety lens. But beyond that we would let people go for it. And I think, you know, I think it's interesting from Southwest, from their perspective, they've got an opportunity right now that I don't think anyone has really taken advantage of. Most airlines have gone to basically a intranet in the airplane, with entertainment being served to your own device, which I think is efficient. I think it's the best way to go. People are used to using their own devices. But no one's really done anything interesting with it, in my opinion. That's just a list of films, a list of TV shows. And that's great, because it's amazing how big these libraries are. But no one's really packaged it, in my opinion, into an in-flight product. And it doesn't mean you need to have seatback video. That's last year's technology anyway; it's heavy and it's expensive to maintain. But you can replicate, I believe, something that is almost kind of a curated customer experience in the intranet on the airplane, so when people pull up their phone it's more than just a list of movies. So, I think there's an opportunity there that no one has really taken advantage of yet.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9dc9449c-8770-474f-9554-9510b67092e7", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "I think it's a huge opportunity for Southwest going forward. — David (9:43)", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-1ac3-70f9-8553-39a729d63921", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 24, "from": 13, "beatId": "bc671ffb-45b9-46c8-bf7b-b495d0ceae61", "arcName": "The Sparkline", "arcSlug": "sparkline", "beatName": "Resolution", "beatSlug": "resolution", "evidence": "The document concludes with further disclosures, sign-up information, and additional nominee details.", "position": 3, "confidence": 0.6, "parentBeatName": null, "parentBeatSlug": null } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }