Southwest Airlines 1998 Annual Report Download - page 38

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38
SOUTHWEST AIRLINES CO. ¤ SIX STORIES OF FREEDOM
FLIGHT SAFETY SYSTEMS The Company has completed all phases of its Year
2000 project as it relates to its aircraft fleet and onboard support systems. The
Company has determined there are no safety issues with these systems.
The Company also utilizes ground computer systems and equipment essential for the
maintenance of aircraft and the management of flight operations. The identification,
assessment, and remediation phases of the project with respect to these systems and
equipment are completed. The Company expects to complete testing by mid-1999.
INTERNAL SYSTEMS The Company’s critical internal systems include computer
hardware, software, and related equipment for customer reservations, ticketing, flight
and crew scheduling, revenue management, accounting functions, and payroll, as well
as airport activities including aircraft ground handling, bag handling, and security. The
computing hardware and telecommunications equipment in the Company’s central data
center are essentially Year 2000 ready at this time. The majority of the Company’s vital
and critical software systems are either in testing or have already been made Year
2000 ready. While some systems are currently in the testing phase, with a small
number in the remediation phase, the Company expects the majority of vital and critical
systems to be Year 2000 ready by mid-1999.
THIRD PARTIES The Company has categorized its third party vendors with respect
to their potential impact on Company operations in the event any such third party
vendor has Year 2000 issues which are not dealt with on a timely basis. The Company
is also identifying and assessing the impact of Year 2000 issues as they may affect the
vendors’ businesses (which, in turn, could affect the Company). The Company has
made initial contacts with all of its material third party vendors and is in the process of
evaluating their statements of Year 2000 compliance. In addition, the Company
continues to work with other members of the Air Transport Association, the airline
industry trade group, to share information and resources regarding vendors which are
common to the entire industry.