'Never Say Never' on Bag Fees: Southwest CEO

[redflyer65]

"There are no plans to charge for bags in 2013," he said in a "Squawk Box" interview.



Maybe for 2014. Standby.

 

[trip]

I've heard rumor of the guys abusing the double time. One guy agrees to call in sick one day so his buddy gets double time. Then he calls in the next day, etc. Rinse and repeat for a nice big check. Just one example things that need to change. There are plenty of other 'non-pilot' examples.

Probably learned it from their union buddy firefighters, old trick that has been used to fleece taxpayers for years.

 

[gutshotdraw]

I've heard rumor of the guys abusing the double time. One guy agrees to call in sick one day so his buddy gets double time. Then he calls in the next day, etc. Rinse and repeat for a nice big check. Just one example things that need to change. There are plenty of other 'non-pilot' examples.

We had firefighters in our city do the EXACT same thing until it was discovered a while back. Some regular-joe, line firefighters were making $235,000 a year using the scam and especially in the last year or two of their 20 years in order to lock in MAJOR pension checks.

Now, it takes big, brass ones to willingly walk into a burning building (firefighters are trained to NEVER run) but given that the average call in this city is a car wreck, fat granny stuck in the tub, a one or two story house fire, and an EXTREMELY rare high rise fire, 235K for a high school graduate is pretty righteous coin.

But hey, if you can get the cash, more power to ya.

 

[dicko]

"There are no plans to charge for bags in 2013," he said in a "Squawk Box" interview.



Maybe for 2014. Standby.

Exactly Red. That was the most significant quote with regard to fees. 2014 will be the year: 'due to rising costs, the need to align best practices between airlines and capitalize on merger synergies'.

There may be a nice little undercutting of other airlines bag fees to wrap things up. Voila.

 

[jonjuan]

Exactly Red. That was the most significant quote with regard to fees. 2014 will be the year: 'due to rising costs, the need to align best practices between airlines and capitalize on merger synergies'.

There may be a nice little undercutting of other airlines bag fees to wrap things up. Voila.

Why Gary's not doing it right now is that he can't afford the loss in market share that will come with the introduction of bag fees. Those are called the unintended consequences.

 

[HowardBorden]

Why Gary's not doing it right now is that he can't afford the loss in market share that will come with the introduction of bag fees. Those are called the unintended consequences.

Actually, the increase in market share he has been enjoying over the years was the intended consequence of not charging fees that others were. Now he is hoping the scores of passengers that were brought to the brand will stick around because they like the product if baggage fees are charged at some point in the future.

 

[jonjuan]

Actually, the increase in market share he has been enjoying over the years was the intended consequence of not charging fees that others were. Now he is hoping the scores of passengers that were brought to the brand will stick around because they like the product if baggage fees are charged at some point in the future.

Brought to the brand? The brand was the lowest priced ticket. Add bag fees and people will shop where they can find the best flights at the lowest price.

 

[HowardBorden]

Brought to the brand? The brand was the lowest priced ticket. Add bag fees and people will shop where they can find the best flights at the lowest price.

Are you serious? You really think airlines are not concerned with "branding." SWA is consumed by branding their product and keeping the public experience pleasurable and consistent. Branding is what keeps people coming back for more. If you are able to entice a customer to your product you want them to stick around for the long haul. Low prices may get some folks to take a look, but a superior brand is what keeps them there when they aren't the lowest priced option.

The Brands American Men And Women Desire Most

It’s even more important in tough economic times to understand what is driving consumer behavior on a deeper level, Singer says. “When brands understand how consumers feel, they can adjust their marketing accordingly. Southwest is a great example. They understood that consumers felt taken advantage of by most airlines, they capitalized on this, and they’ve built stronger relationships with consumers as a result.”

http://www.forbes.com/sites/jacquelynsmith/2012/02/17/the-brands-american-men-and-women-desire-most/

 

[scoreboardII]

BFF gave swa market share, in my best roger rabbit voice, pulease.

 

[KNOTS]

God that guy bragging about making an extra $1400/month made me vomit in my mouth a little...
that pay sucks considering how demanding the job is phsyically... and how much work that guy does.

Granted, he's not a pilot... but we are our own worst enemies.

Reminds me when I was an FO on reserve at a regional... and guys bragging about getting a few hundred bucks more per diem if they were assigned a trip...

I cry myself to sleep some nights thinking about this industry and what it does to people.