Southwest ‘Heart’ Q&A General Southwest’s next chapter, the Heart! Why are we making the change? Does the new aircraft livery have a name? Were costs considered? Will Southwest’s uniforms be updated as part of the new look? What are Southwest’s new colors, and what do they represent? Why are we replacing our red bellies with a Heart? How are we showing Customers our personality? How long has this new look been in development? Who was involved with developing Southwest’s new look? Will Customers see an increase in fares as a result of this new look? What is the new look roll out schedule? Will AirTran be affected by this new look? Where can I learn more about Southwest’s new look? How can I get a picture of the new aircraft? Conversion How and when will the airports be updated? What is the meaning behind the colors of the way-finding signs? Is anything changing on Southwest.com? When will other Customer touch points reflect the new look? Will the interior of the planes also change? Is the paint we will be using on the Heart livery any different than the paint we have been using? 9/08/2014 Will our specialty planes change? Will Southwest’s new look affect Spirit Magazine? Existing Inventory Can Employees and Customers purchase the items that feature our previous branding when they are removed from airports, airplanes, etc.? Design What is visually different about this design? Why is consistency in branding critical? What is the expected date for current Company logos to be retired? Will any Southwest products have specific logos? Customer Products Is anything changing on Southwest.com? Is anything changing with Rapid Rewards? Will my Rapid Rewards Chase Visa card be getting a new look? Can I still use my southwest giftcard even though it has the old branding? Is anything changing with Southwest Airlines Cargo and Charters? Is anything changing with your onboard WiFi product? Is anything changing with Southwest Airlines Corporate Sales and SWABIZ? 9/08/2014 General Southwest’s next chapter, the Heart! We are excited to unveil a new look of Southwest Airlines, which includes our logo, our livery, and our airport experience. This new look goes hand-in-hand with the next chapter of the Southwest Airlines’ story; One that propels us forward. Southwest is all about moving People—literally from one place to another and figuratively by genuinely caring for Employees and Customers. While we may look a little different, we are the same airline at our core: Amazing Employees, Legendary Customer Service, and low fares. Why are we making this change? Now is an exciting time for our airline. We are serving international markets. The Wright Amendment will no longer restrict where we can fly domestically. Our integration of AirTran is almost complete. With all these major milestones soon-to-be in our rearview mirror, Southwest is fully-equipped to look ahead and plan for our next phase of business growth. And now is the natural time to evolve our Brand to present a bold and modern look that will reinforce us in the minds of our current Customers and draw new People to fly us. As you can imagine, the decision wasn’t taken lightly. There was a lot of discussion and research, including focus groups with Employees and Customers. When speaking with our Customers, it quickly became clear that now is the right time to refresh our look. People sincerely love us, want us to remain unique, and retain our personality, but they 9/08/2014 also gave us permission to change our look. They want to see a more modern, bold visual interpretation of Southwest—keeping our unique color palate that breaks up the airline industry’s “white” sea of sameness. We heard very similar sentiment from Employees, whose feedback was critical to this effort. For these reasons, we retained the vibrant colors and striped tail that identifies Southwest, but added a modern touch by proudly displaying our name on the side of the fuselage and presenting the Southwest Heart on our aircraft belly. It’s big and bold, but also authentic and welcoming. During our 43 years, Southwest has had several different logos and liveries. Remaining current and relevant is critical to the sustainability and future growth of our brand. Background: Our Heart with Wings logo was introduced in 1991 as part of our 20th anniversary (it replaced the Parallelogram design that officially became our Company logo in 1981), and our Spirit livery was introduced in 2001 for our 30 th anniversary. Does the new aircraft livery have a name? For our new look, we wanted a name that epitomized who we are at our core—at our Heart. So, we decided that “Heart” is the perfect name for our new livery. And Heart is more than a name—it’s also now showcased in our logo and will begin appearing on the bellies of our planes. That Heart represents our Employees and their genuine 9/08/2014 dedication to Southwest’s Customers. Our Employees are the Heart of our airline and now that Heart is on display for the world to see. Southwest was founded at Love Field, has LUV as its stock symbol, and our Employees are renowned for having the biggest, most-caring Hearts in the industry. Were costs considered? Our approach and focus with this launch has been with an intent to remain cost-neutral by using a phased rollout to spread the costs over time and reorganizing spend to fit within existing budgets. For example: aircraft are being repainted within the existing repainting schedule, and newly acquired aircraft will be delivered already painted in the Heart livery. In addition, in anticipation of this rollout, we suspended re-painting of aircraft this year. Further, for many of the airport conversions, we are integrating ourselves into existing and upcoming airport improvement projects. Because we are taking this cost-conscious approach to the conversion of planes and airports, it might be some time before Customers and Employees see the new design in person. In the meantime, please visit Southwest.com/Heart to get an up-close look! Will Southwest’s uniforms be updated as part of the new look? Yes! It will take time to develop designs, wear test, and manufacture the pieces, but Employees from all uniformed work groups will be a key part of the entire process. Stay tuned for more information about what the process will look like and how to participate. Please see the “Uniform” section of this Q&A for additional information. 9/08/2014 What are Southwest’s new colors, and what do they represent? Bold use of color has always been a signature of Southwest’s DNA. From our origins bathed in Desert Gold to the inauguration of Canyon Blue, we now introduce a bold, new palette. Bold Blue, Warm Red, Sunrise Yellow, and Summit Silver are our new primary colors, and we use them in the Heart Symbol, on our planes, and throughout Southwest’s branding. A deeper Bold Blue was developed to evoke that spirit of exploration in reaching new heights. Warm Red evokes our Warrior Spirit and our passion for delivering excellent Customer Service. Sunrise Yellow ushers in the dawn of a new chapter in the history of Southwest. And the shimmer of silver adds a contemporary energy to the livery design and encases the jewel tones of the Heart logo. You will notice that the intensity of these colors has been enhanced to showcase the energy and excitement associated with our brand. 9/08/2014 without a Heart is just a machine, and Southwest without you is just another airline. Why are we replacing our red bellies with a Heart? Proudly displaying our Heart on the bellies of our planes is a new and exciting way to show the world who we are and what we stand for. To succeed in the airline industry it takes dedication, hard work, and passion to survive. But most importantly, it takes Heart. Luckily for Southwest, we have nearly 46,000 Employees whose collective heartbeat can be felt each time they connect a Customer to what’s important in their life. And moving forward, the Heart of our Employees will be on the bellies of our planes for the entire world to see. And every time an Employee sees that Heart, they should swell with pride knowing the difference they are making for our Customers. How are we showing Customers our personality? We are sharing Southwest’s sense of humor and spotlighting our fun personality by featuring short, witty “personality lines” throughout the Customer Experience. These personality lines will be seen on items including Ground Services Equipment, bag tags, peanut packages, and napkins. These fun lines are created as a way to make our 9/08/2014 Customers smile. As always, our personality will be featured in our new television spots that feature our new branding, which are airing now. Visit SWALife to get a sneak peek. How long has this new look been in development? Initial discussions started in spring 2013 when a small project Team began the early exploration process, working with vendors, and conducting Customer and Employee focus groups. But the project actually started rolling once we received executive approval in January 2014. Who was involved with developing Southwest’s new look? As you can imagine, rebranding a Fortune 500 company is a huge undertaking that warranted thoughtful research and strategy for execution. Lippincott, a leading Brand Strategy and Design firm, provided excellent consulting on those two aspects. Longtime advertising agencies GSD&M and TBWA\CHIAT\DAY have been working on production of messaging, advertising, and more. Many other critical vendors also helped bring the brand to life. With the exception of Lippincott, most of the vendors already were Southwest partners and know the Southwest brand well. This process was a melding of great minds and definitely helped raise the benchmark of what we’ve created, both from a brand vision and a brand communication campaign for launch. Will Customers see an increase in fares as a result of this new look? Southwest doesn't make a change this bold without first assessing cost impact. Our 9/08/2014 objective with the new look was to execute the project while remaining cost-neutral. Any decision to raise fares would be independent of this project. What is the new look roll out schedule? To support our cost-neutral goal, we are converting aircraft, airports, and other Customer contact points within their existing maintenance and conversion schedules. We anticipate the entire project will be completed within approximately seven years. However, please note that many conversions, primarily at the airports, will occur within the next few years. Please see the “Conversion” section of this Q&A for additional information. In the meantime, please do not remove any existing Southwest-branded signage or items. Will this affect our AirTran integration schedule? The AirTran integration will not be affected by this new look, and is expected to be complete by the end of the year. Where can I learn more about Southwest’s new look? Southwest is excited about our new look and you can learn and see more—including photos and renderings of our new livery and airport spaces—at Southwest.com/Heart. This site also features videos from Southwest Leaders, who discuss various aspects of our new look. 9/08/2014 How can I get a picture of the new aircraft? Customers can browse images of our new livery in Southwest, The Magazine (previously Spirit, onboard our planes) at SWAMedia.com, and at Southwest.com/Heart. Employees, be sure to check out the September 2014 issue of LUVLines for a centerfold you won’t want to miss. Conversion How and when will the airports be updated? By the end of 2014, we plan to have three airports (locations still TBD) converted with updated items including ticket counters; gates; kiosks; Flight Information Displays (FIDS), Gate Information Displays (GIDS), and Boarding Information Displays (BIDS); and new Southwest way-finding signs, which are color-coded to help Customers navigate the airport. Dallas Love Field will feature our new look beginning September 8, and two additional airports should convert by the end of this year. We expect that all airports will be converted by the end of 2016. Of course, any of these numbers could change based on evolving business needs. Station Leaders will be notified when their locations have been scheduled for conversion (about a month prior). In the meantime, 9/08/2014 please do not remove any existing Southwest-branded signage or items. What is the meaning behind the colors of the way-finding signs? Southwest is focused on enhancing the Customer Experience and this includes new airport way-finding signs that will help Customers navigate the airport. The colors of the signs act as visual cues to the Customers. Once Customers are familiar with what a color means, they will be able to find the service they want at a glance. Red signs indicate self-service options; yellow signs mean full-service options; blue signs are for our Fly By Priority Customers; turquoise signs represent international travel; and white signs are for general messaging. This new approach will provide a cohesive airport experience as it rolls out across the network, and celebrates the vibrancy of color that makes our Southwest experience so welcoming. 9/08/2014 Is anything changing on Southwest.com? You will notice elements of our new look are now featured on Southwest.com. We have been listening to our Customers and are gradually redesigning our digital platforms to become more streamlined and relevant to their needs. Our new homepage is the first step to the redesign of the full Southwest.com. For now, we have simplified our main menu to bring you a more efficient and cleaner navigation experience. We look forward to evolving the new Southwest.com in the near future. For help finding a specific link, please visit our sitemap: www.Southwest.com/html/customer-service/sitemap.html. When will other Customer touch points reflect the new look? Naturally, given the scope of this project, it will take time for everything to be converted. Digital Customer touch points such as Southwest.com, social media channels, and marketing e-mails were updated 9/08/2014 immediately to reflect Southwest’s new look; however, some aspects of the previous look may linger. Airport kiosks were updated at DAL on September 8, with systemwide updates coming soon after. To not increase our costs, physical Customer touch points like those found onboard and on the ground (ticket jackets, luggage tags, drink coupons, napkins, refreshments, etc.) will be updated over time as current inventory is depleted. Safety cards and menus, as well as our onboard magazine, now called Southwest, The Magazine, will reflect the new branding on September 15. Will the interior of the planes also change? Yes, the interior of our planes will change, and that work will begin by the end of next year. But for the immediate future, the interior will remain the same. Pending approvals, we plan for the silver winged-heart logos on the front bulkhead and on the aft wall of the aircraft to be replaced with the new Southwest Heart as the aircraft livery is updated. We’re in the process of researching potential updates to our seats. We’ll share that information as plans develop. We certainly intend for our interiors to reflect our new look. More to come! Is the paint we will be using on the Heart livery any different than the paint we have been using? The Heart livery colors are more saturated and chromatic than our current Spirit livery paint, giving our Heart aircraft a cleaner and brighter appearance. Southwest is always looking to improve our aircraft paint performance, and the paint being used for the Heart livery has a different formulation to help with durability, as well as a solar reflective 9/08/2014 technology to assist with cabin temperature. Since this particular paint formulation is unique to Southwest, we will be monitoring it closely for any additional benefits with our paint vendor PPG Aerospace. Will our specialty planes change? The Heart livery will be transferred to the specialty planes too! The look replicates the Brand vision and of course still displays the key design cue— a Heart by the entry doorway of the plane. To respect the integrity of the state flags, some of the features of our Heart livery will look different on the specialty planes. We will retain one aircraft in the fleet—Warrior One—that will remain painted in our Spirit livery. 9/08/2014 Will Southwest’s new look affect Spirit Magazine? On September 1, the name of Spirit Magazine changed to Southwest: The Magazine. The new name is a small way of expressing our pride in what we do. Of course, the spirit is very much alive at Southwest! In addition to the new name, The Magazine also now features elements of our new visual identity, including the Heart logo and aircraft livery. For example, in addition to a great new image of CEO Gary Kelly, his monthly column, Gary's Greeting, now has a sharp, new layout. Similar treatments have been made throughout most of the magazine, so give it a look next time you are flying on a Southwest plane! Also, a new column has been introduced called "You Made Our Day" that features letters from our Customers about their Southwest experiences. One of our favorite columns, Star of the Month, has a new name as well, and is now called "Our Star"! It features an Employee who has gone above and beyond, and our new name better fits the love we feel for honorees. We hope our readers enjoy these enhancements! 9/08/2014 Existing Inventory Can Employees and Customers purchase the items that feature our previous branding when they are removed from airports, airplanes, etc.? We understand that many Employees and Customers are interested in adding to their personal Southwest collections. We are still in the process of deciding how to best handle these retiring items, so stay tuned for more information. Of course, cost will be top of mind when making this decision. In the meantime, please do not remove any existing Southwest-branded signage or items. Design What is visually different about this design? The goal with our new look was to achieve a unified and consistent look across all elements of our Customer experience. As the new look unfolds, changes beyond just the aircraft will help to reveal an exciting brand experience. Every detail from airport signage to business cards will help to celebrate this exciting chapter in our history. Why is consistency in branding critical? Consistency is key with any brand as it helps to maintain the integrity and clarity for our Customers. As we expand into new markets and reach new Customers it is important that we maintain and deliver a consistent experience—and to accomplish this we need your help! As we strive to become the world’s most flown airline, dedication to visual consistency will strengthen that vision to protect Southwest’s brand. 9/08/2014 What is the expected date for current Company logos to be retired? As of September 8, 2014, our beloved Heart with Wings and Take Off corporate logos (as we’ll as all logos not represented within the new Brand Style Guide) officially will be retired. Please enjoy our exciting new logo, which should be used on all new materials and communication representing Southwest Airlines. Please continue to use any inventory with the previous logos until current inventories are depleted. Customer Products Is anything changing with Rapid Rewards? The program as it is today will not change; however, the program assets will reflect Southwest’s new branding. Will my Rapid Rewards Chase Visa card be getting a new look? Yes, more information on the new look of the Rapid Rewards Chase Visa card will come at a later date. Can I still use my southwest giftcard even though it has the old branding? Yes. 9/08/2014 Is anything changing with Southwest Airlines Cargo and Charters? The Cargo and Charters product will not change; however, our look and our website, swacargo.com, will reflect Southwest’s new branding. Is anything changing with your onboard WiFi product? The WiFi product as it is today will not change; however, the look of the portal will reflect Southwest’s new branding. Is anything changing with Southwest Airlines Corporate Sales and SWABIZ? The SWABIZ product will not change; however, our assets will reflect Southwest’s new look. Uniforms It’s true! The time has come to develop a new Southwest Airlines uniform—an updated, unified look that represents who Southwest Employees are: Spirited (but not hokey), professional (but not stuffy), and casual (but not sloppy). As the face of the Southwest brand, our Employees demonstrate our core strengths each day through their hospitality and love for our Customers and each other. The new uniform will reflect just how unique our Employees are as individuals and Southwest Airlines is as a brand. 9/08/2014 Which work groups will receive a new uniform? All Flight Attendants, Customer Service Agents and Sups, Skycaps, Ops Agents and Sups, Customer Contract Service Leads, Cargo Agents and Sups, Ramp Agents and Sups, Provisioning Agents and Sups, Tech Ops Employees and Sups, GSE Employees and Sups, Tech Ops Training Sups, Facilities MX and Sups, will receive a new uniform. Pilot uniforms will remain the same, but a specialty tie or scarf may be added in the future. When will the new uniforms be ready? It will take several years to transition new uniforms systemwide. The first phase includes choosing a designer/vendor followed by concept design, wear testing, and roadshows. The actual timing will depend on the length of each of the steps below. Gather Employee Feedback Designer/Vendor Selction Concept Design Wear Testing Production Fit Line New Uniform Available Retire old uniforms Cautionary Statement Regarding Forward-Looking Statements These FAQs contain forward-looking statements related to the Company’s brand evolution (including the timing and costs associated with its brand evolution), the timing of the Company’s integration of AirTran, and the Company’s growth plans. These forward-looking statements are based on the Company's current intent, expectations, and projections and are not guarantees of future performance. These statements involve risks, uncertainties, assumptions, and other factors that are difficult to predict and that could cause actual results to vary materially from those expressed in or indicated by them. Factors include, among others, (i) the impact of economic conditions, fuel prices, and actions of competitors on the Company's business decisions, plans, and strategies; (ii) the Company's ability to timely and effectively prioritize its strategic initiatives and related expenditures; and (iii) the Company's dependence on third parties with respect to its rebranding plans. 9/08/2014 9/08/2014