Southwest Airlines CEO Gary
Kelly and President Colleen Barrett today announced a realignment and
flattening of the Company’s organizational structure. Kelly was named CEO
of Southwest Airlines on July 15, 2004. “Our objective is to further streamline our reporting structure and allow
our Officers to better serve the People of Southwest Airlines,” Kelly
said. “We believe these changes better align the leadership strengths of
our Officers with the current demands on our growing Company.”

In addition to Barrett, Jim Wimberly, Executive Vice President-Aircraft
Operations, and Donna Conover, Executive Vice President-Customer
Operations, will report directly to the CEO. Finance, Planning, and
Technology also will report to Kelly, who also will chair the Pricing
Committee.

“One of the objectives of this new structure is to allow Jim and Donna to
spend more time with the People directly involved in our operations,” said
Kelly.

Reporting to Barrett are Marketing, People and Leadership Development,
Purchasing, Communications, Employee and Labor Relations, and Internal
Audit. “I asked for my reassignment of direct reports, as well as for the
deletion of COO from my title, because I firmly believe this new structure
will better serve Southwest Airlines as a whole,” said Barrett.

Responsibilities reporting to Executive Chairman Herb Kelleher, in
addition to Kelly, are Public Affairs and industry issues; fleet planning;
and chairing the Schedule Planning Decision Committee.

The changes are effective as of September 1, 2004, but the transition will
begin immediately.
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