Southwest to ditch pneumatic tubes and paper tickets in $800m upgrade

In its 45 years of flying, Southwest Airlines has been known for its lean operations and vaunted “20-minute turns” -- the time between a jet getting to a terminal and pulling away for the next flight. The airline’s low-cost, no-frills, single-model fleet and mostly direct service meant Southwest didn’t need the tablet-toting mechanics, bag scanners for ramp workers and other technological advances that swept the industry. That’s about to change as the airline says goodbye to its antiquated systems. Southwest is spending as much as $300m to bring new technology to the airport ramp and other operations. That adds to the $500m the airline has devoted to a new reservation system -- the airline’s biggest tech update ever. Southwest expects to recoup its investments by 2020. “We’re looking for minutes,” COO Mike Van de Ven said. “How do I save a minute here, a minute there? In 2017, we are more deliberate in our continuous improvement efforts.” Those efforts have become more critical over the past five years as Southwest has acquired another airline, begun flying larger planes, started overseas flights, built international terminals and expanded service at its home airfield in Dallas. The changes have added complexity, doubling the carrier’s turns to a costly 40 minutes. And this year, Southwest will add $700m in expenses from two new labour contracts and a third under negotiation, according to a JPMorgan Chase & Co. estimate. “Southwest’s approach was so successful for so long that it has taken them time to recognize where there’s room for improvement,” said Samuel Engel, aviation VP at consulting firm ICF International. “Sometimes you look back and realize, ‘There have been innovations and we need to catch up.’” The new domestic reservation system will replace 30-year-old technology this year, giving Southwest the same ability as rivals to accept foreign currency, recover faster from storms, and more easily change prices and schedules. Southwest also will be able to tighten the timing of flights for connecting passengers, which have increased 11% since 2012. On the tarmac, mechanics and other workers will get tablets that receive real-time information so they can start addressing problems in the first five minutes of an aircraft’s turn. Other tools will let Southwest better match airport staffing to flight-schedule changes. <br/>