Luggage officer invite the luggage to a Southwest Airlines Boeing 737 at the International Airport Austin-Bergstrom on August 24, 2024 in Austin, Texas.
Kevin Carter | Getty Images News | Getty pictures
It happens: Southwest Airlines The passengers will start checking bags for the first time.
It is a breathtaking reversal that shows that the inexpensive pioneer is ready to separate from a customer in which PERK managers take off from the competitors in more than half a century, in the hope of increasing the income.
Southwest changes after months of pressure by the activist Elliott Investment Management. The company took over a participation in the airline last year and won five seats when it was pushing for quick changes in the company that so far – so far – such as free check bags, changeable tickets and open seats.
For tickets that were bought on or after May 28th, customers in the southwest must pay in all top tariff tariff classes to check bags even though there will be exceptions. Elite lots of flyers who have the status “A-List Preferred” continue to receive two bags and members of the A-List Level receive a free check bag. Owners of the southwestern credit card holder also receive a free check bag.
“Two Bags Fly Free” is a registered brand on the Southwest website. His decision to deal with the managers that have long been equipped as a sacrosanked passenger adviser brings the largest US domestic spread in line with its competitors, which together generated $ 5.5 billion from BAG fees last year.
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The executives of Southwest have long said that they would not have to introduce bags and informed the analysts of Wall Street that it was a main reason for the selection of customers for the airline.
“After the tariff and schedule, pocket fly is referred to as number 1, in which customers choose why customers choose southwest,” said CEO Bob Jordan last July when calling for a profit.
But Southwest has changed his melody.
“What has changed is that we found that we need more income to cover our costs,” said Coo Andrew Watterson in an interview with CNBC about the changes to the luggage fee. “We believe that these changes that we announce today will lead to less of this shift in shares than would otherwise have been the case.”
In September, Ryan Green, the then Chief Transformation Officer from Southwest, said the analysts that his analysis had shown that Southwest would lose more money if they were transferred to the competitors when it started to calculate bags than to do from fees.
“The fact that free bags are an important driver of choice creates the risk that customers can choose the competition if we change the guideline,” he said.
Southwest said last month that Green separated it.
On December 28, 2022, Pristine Floyde is looking for a friend of a friend in a luggage breakdown for Southwest Airlines at the International Airport in Denver on December 28, 2022.
Michael Ciaglo | Getty pictures
Other changes
The airline also said on Tuesday that it will start a new, fundamental economy Tarate, which rivals have offered for years.
Southwest will also change the way customers earn fast rewards: customers receive more from the frequent flyers, depending on how much they pay. The redemption rates vary depending on the flight requirement, a dynamic price model competitor.
And missions for tickets that were bought on or after May 28th runs or earlier depending on the type of bought fare.
It is the latest in a number of massive strategy changes in the southwest because its performance has fallen behind competitors.
In July in July, Southwest shocked the passengers when it announced that it would hand over its open seating model for assigned seats and add “premium” additional legroom options to end a cabin in the individual class for decades.
The airline also wants to reduce its costs. Higher expenses from pandemic have taken a bite out of the flight traces.
Last month, Southwest announced his first mass release and reduced around 1,750 jobs of around 15% of his company employee, many of whom in his headquarters, Jordan, a decision -making ceroo who is described as “unprecedented” in the more than 53 years of airlines.
“We are in a crucial moment when we transform Southwest Airlines into slimmer, faster and more agile organization,” he said last month.
At the beginning of this year, Southwest announced the resignation of his long -standing CFO Tammy Romo, who was replaced by the Breeze manager Tom Doxey and his chief administrative officer Linda Rutherford. Both managers worked in Southwest for more than 30 years.
Southwest has also lowered unprofitable routes, summer internships and employees teambuilding events for decades.
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