Southwest CEO remains adamantly opposed to baggage fees

[BILL LUMBERG]

Absolutely!

The legacy carriers used bankruptcy to attempt to level the cost playing field and yet most still lag behind in CASM.

Although most in the industry are realizing record profits, much of that profit comes from hugely increased ancillary fees contributing greatly to the bottom line. SWA has done so without tapping the fee spigot.

I will admit I have been skeptical on the baggage fee issue now that it has become a regularly accepted cost that will clearly never go away, however the numbers don't lie and he is showing record profits without the fees everyone else is using.

In the end I see bag fees as a "get out of jail free" card. If and when financial hard times hit at SWA, they have an accepted revenue stream to tap in order to weather the storm. Rest assured if a financial storm hits, it will effect all carriers in similar ways and most don't have a back up plan to roll out if needed.

Like ourselves don't we Howard??

 

[Nindiri]

Although most in the industry are realizing record profits, much of that profit comes from hugely increased ancillary fees contributing greatly to the bottom line. SWA has done so without tapping the fee spigot.

I will admit I have been skeptical on the baggage fee issue now that it has become a regularly accepted cost that will clearly never go away, however the numbers don't lie and he is showing record profits without the fees everyone else is using.

In the end I see bag fees as a "get out of jail free" card. If and when financial hard times hit at SWA, they have an accepted revenue stream to tap in order to weather the storm. Rest assured if a financial storm hits, it will effect all carriers in similar ways and most don't have a back up plan to roll out if needed.

Or, we could go ahead and tap that revenue stream now, and put the money in the bank to cover potential future financial storms.

 

[BILL LUMBERG]

I couldn't care less what Richard Anderson giggles at.

My point is that most of the legacies have given "everything" they have to maximize profitability, the bankruptcy courts slashed their cost structure and ancillary fees have padded the bottom line to reach the current profit margins. Southwest is making record profits without using these methods. When hard times hit (and they will) SWA has a lot of flexibility left in their playbook to remain profitable in a down market.

"Everything"? Really Howard?

 

[waveflyer]

No, wave, you just haven't figured out that your past is not a reliable indicator of your future. You'll learn soon enough, though.

Thanks dad

That is the philosophy of your life though isn't it
"I know I've failed and been wrong over and over - but that won't keep going- I just "know" it"

 

[HowardBorden]

Like ourselves don't we Howard??

"Everything"? Really Howard?

Thank you for the fact filled and informative retorts.

I admire your brevity while delivering hard hitting quantitative analysis and formidable dismantling of the suppositions put forth.

 

[PCL_128]

Thanks dad

That is the philosophy of your life though isn't it
"I know I've failed and been wrong over and over - but that won't keep going- I just "know" it"

Failed? I think I've done pretty well. But okay. Whatever makes you feel better!

 

[blesko]

The CRS doesnt allow for ancillary fees, thus baggage charges cannot be collected.

 

[HowardBorden]

The CRS doesnt allow for ancillary fees, thus baggage charges cannot be collected.

Baggage Allowance
Southwest allows two (2) checked pieces of baggage per ticketed Customer. Size and weight limitations apply.

Excess Baggage
Effective for tickets purchased on or after December 15, 2012, for travel on or after February 13, 2013, the 3rd checked bag and any bag there after is $75 per piece.

For tickets for travel before February 13, 2013, or for tickets purchased prior to December 15, 2012, your 3rd through 9th bag or item will incur a charge of $50 per piece, and any bag or item thereafter will be $110 per piece.

http://www.southwest.com/html/customer-service/baggage/checked-bags-pol.html

 

[waveflyer]

Failed? I think I've done pretty well. But okay. Whatever makes you feel better!

Man, I'm not talking life-
I don't know you and wish you all the success in the world.
But you haven't been right on pretty much anything swa related
And you thoroughly failed te pilots you represented at air tran with this persistent, boring, poisoning of the well-

I'm not happy that we don't have a contract when so many executives do-
accountants aren't good leaders, GK isn't an exception to that rule, and I don't like that- I wish he would grow in that area

That said there is no one I can think of that I'd rather have in this position.
Period
Gary had every metric for furloughs in '09 that air tran and everyone else had and chose not to.
Gary has presided over the highest pilot contract and had not LUMBERG, gone after pay cuts
Gary has pushed back against the old guard that wanted to keep on in simplicity and get us to embrace technology and international ops-

I want a contract- but this kind of hyperbole just makes us sound like bitches. Standard, narcissistic, ignorant, pilot bitches.

We HAVE TO BE CREDIBLE IN NEGOTIATIONS

The GO has had so much criticism leveled at it that they do not care what we think.
That may be poor leadership to allow a disconnect, but we do not need to be little complaining bitches during such a time of change

 

[PCL_128]

And you thoroughly failed te pilots you represented at air tran with this persistent, boring, poisoning of the well-

Wave, I keep telling you, and you just don't listen. Even if I am the person you all think I am, I still didn't represent the AirTran pilots at the time of the integration or during any of the negotiations leading up to it. So you can keep trying to pin blame for the outcome on me, but it just doesn't hold any water. And had I been in a position to affect the direction of negotiations, I'm quite confident that things would have turned out much better for the AirTran pilots.

That said there is no one I can think of that I'd rather have in this position.
Period

Okay. You're certainly entitled to that opinion. And I'm entitled to think you're nuts.