Southwest CEO: 'I'd rather have a customer than a bag fee'

[AC560]

They used to never charge extra fees, but then added the "board first for an extra $10" fee (that comes with a free drink). I bet they will figure out ways to find some more.

I think optional fees are a lot different than a surcharge. If traveler wants to pay $200 to sit in United Plus, or $600 to upgrade to business, or buy a day lounge pass, etc. those are all options which bring some value to the customer (in the case of the upgrades sometimes a good savings as well) and are entirely optional.

Charging $200 online for a ticket and then hitting the unsuspecting consumer for another $50-100 at the airport in various fees isn't the way to build brand loyalty.

Carriers need to be looking how to upsell and differentiate which WN (which I rarely fly but like when I do) is doing.

 

[johnsonrod]

Please explain why Southwest has to pay more for Airtran employees wages?, you lost me there...

Compared to current day wages? I don't think GK will pay the two groups differently, do you? The Airtran employees should get a huge raise.

 

[jonjuan]

I think optional fees are a lot different than a surcharge. If traveler wants to pay $200 to sit in United Plus, or $600 to upgrade to business, or buy a day lounge pass, etc. those are all options which bring some value to the customer (in the case of the upgrades sometimes a good savings as well) and are entirely optional.

Charging $200 online for a ticket and then hitting the unsuspecting consumer for another $50-100 at the airport in various fees isn't the way to build brand loyalty.

Wait a sec-On one hand, Gary says people are flocking to WN because they don't want to pay bag fees and on the other you say these same people are ambushed and unsuspecting when they get to the airport? It's a free freaking country. I've seen plenty of hayseeds shopping at Whole Foods when they could be shopping at the local blue collar store.
If I were a frequent business traveller on WN, I would be ticked that I had to subsidize the mouth-breathers who show up with their BBQ grill at check-in.

 

[General Lee]

I think optional fees are a lot different than a surcharge. If traveler wants to pay $200 to sit in United Plus, or $600 to upgrade to business, or buy a day lounge pass, etc. those are all options which bring some value to the customer (in the case of the upgrades sometimes a good savings as well) and are entirely optional.

Charging $200 online for a ticket and then hitting the unsuspecting consumer for another $50-100 at the airport in various fees isn't the way to build brand loyalty.

Carriers need to be looking how to upsell and differentiate which WN (which I rarely fly but like when I do) is doing.

For awhile USAir was charging for water. That is wrong. But, changing an itinerary can cost an airline money because that seat, if it is a premium seat in first class etc, is limited in number, and holding it when other people may want it should cost something if you can't take it later. It's like putting a deposit on something of value. If someone dumps the ticket with one day left before departure, that high priced seat may have to be dumped onto priceline or some other website to just fill the seat, because other people who wanted that seat have moved on to other flights or airlines. Southwest doesn't really have any premium seats, so that is why they just don't care. Airtran has a first class with XM radio throughout the planes, but that will all be gone too.


Bye Bye---General Lee

 

[General Lee]

Compared to current day wages? I don't think GK will pay the two groups differently, do you? The Airtran employees should get a huge raise.

That is correct Rod, that is what I was trying to say. Airtran cost SWA $1.4 billion, and will cost them more when Southwest has to increase the pay for each Airtran employee to match their counterparts at Southwest. That Low Cost Operation won't be so low cost soon. Add higher oil prices, and I see extra fees sneaking in to Southwest's game plan, and a bunch of one time charges in the future.



Bye Bye---General Lee

 

[General Lee]

What he 'meant' was that all those AT employees will be coming up to SWA payscales...what he wonders, is if he made the right decision.

Made the right decision? You mean about paying for a 737 type rating to try to get an interview? Didn't have to do that, and I made the right decision. I see the world and enjoy my job at the same time. It is fantastic.


Bye Bye--General Lee

 

[Tejas-Jet]

Nothing says one has to "buy" a type rating to get hired at SWA.

 

[seerickyfly]

SWA is not the norm again. Internal goal to have 20% of domestic market. Well we will see.

 

[desolo]

what i meant to say is that eventually everybody will be paid equally, not to keep the operation separately. That does not increase southwest costs.

 

[redflyer65]

That is correct Rod, that is what I was trying to say. Airtran cost SWA $1.4 billion, and will cost them more when Southwest has to increase the pay for each Airtran employee to match their counterparts at Southwest. That Low Cost Operation won't be so low cost soon. Add higher oil prices, and I see extra fees sneaking in to Southwest's game plan, and a bunch of one time charges in the future.



Bye Bye---General Lee

It's not that bad General, especially when you own most of the planes and don't have NINE fleet types.