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.

 

[BILL LUMBERG]

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.

All this from a storied RJ guy who bought a 737 type...I'm shocked you can put a sentence together Howard....Really?

 

[waveflyer]

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.



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

For the lawyers, I'm not talking to a person here- I'm talking to PCL who posts on FI-
Clear enough?

PCL's posts have been wrong on just about everything SWA

Try and stay on topic man, I really don't care about the sli anymore

Now pcl could think I'm nuts- but pcl has never flown at SWA and has nothing to add but really dated SWA stereotypes.
It is ironic that Gary is the one at the helm while we've been busting through all the operational things you like to critique so much -

 

[Roomwithaview]

Pinnacle

I still didn't represent the AirTran pilots at the time of the integration

I thought we were done talking about the SLI?

:beer:

 

[PCL_128]

For the lawyers, I'm not talking to a person here- I'm talking to PCL who posts on FI-
Clear enough?

PCL's posts have been wrong on just about everything SWA

Try and stay on topic man, I really don't care about the sli anymore

I am on topic, wavey. This is what you said: "And you thoroughly failed te pilots you represented"

Despite your protests to the contrary, you are still obsessed with re-litigating the SLI.

 

[waveflyer]

But you haven't been right on pretty much anything swa related
And you thoroughly failed the pilots you represented at air tran with this persistent, boring, poisoning of the well-

Man, if you're going to quote me, quote it all^^^

It's not the SLI, it's the constant SWA bashing (yawn....)

You've been doing that since I logged onto this place. Well before the announcement, and now well after- you're supremely confident in opinions that just aren't true.

 

[PCL_128]

That's just a matter of opinion, wavey. I think your airline sucks. You're welcome to think otherwise, but you ain't convincing me!

 

[waveflyer]

It's not a matter of opinion that you've never flown here and so don't really have valid points- but troll away-
Lord knows I do

 

[slaquer5]

That's just a matter of opinion, wavey. I think your airline sucks. You're welcome to think otherwise, but you ain't convincing me!

No way. I had no idea you felt that way about SWA


You should not keep things tied up inside of you .


Now,don't you feel better now that you finally said what's on your mind and how you feel.

 

[waveflyer]

Think. How many hundreds of posts could've been saved with that one brief summation?
Done.

Now teach that brevity to bubba

 

[SWA Bubba]

Think. How many hundreds of posts could've been saved with that one brief summation?
Done.

Now teach that brevity to bubba

Damn! I wasn't even in this conversation!

Besides, it's not my fault that you aren't capable of using proper grammar or punctuation. Or, for that matter, the fact that you aren't able to string two or more actual, complete and coherent sentences together. You might want to take that up with your former English teachers from grade school. :blush:

Bubba

 

[waveflyer]

I couldn't pronounce coherent and fell asleep twice trying.
Sorry man

 

[Roomwithaview]

I couldn't pronounce coherent and fell asleep twice trying.
Sorry man

But, you did a kick a$$ job of using brevity.

 

[canyonblue]

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.

Yeah, how did it turn out for the groups that took it to arbitration? It's always easier to say the other option was better when you never even took it. Your lack of experience is obvious, and you think too highly of yourself. I just thank God you won't be circumnavigating the interview process here. Buh- Bye!

 

[JT12345]

To be honest I think the new paint job will not be adding 'bags fly free here (arrow)' over the cargo doors anymore.

 

[HowardBorden]

JetBlue Contemplates Bag Fees

The irresistible allure of checked-baggage fees may finally be circling JetBlue Airways (JBLU). The carrier, known for its blue potato chips and relatively spacious legroom, is exploring the revenue potential of what it calls new fare ?buckets? and ?families? as a way to bundle services?including luggage?and increase profitability.

The airline currently charges for a second suitcase but allows travelers to check one for free. The change, which would probably come sometime in 2015, would leave Southwest Airlines (LUV) as the only big carrier that doesn?t charge a fee for checking a bag. ?If you chose to buy a bucket without attributes and show up with a bag, you probably should pay for it,? JetBlue Chief Financial Officer Mark Powers told my Bloomberg News colleague Mary Schlangenstein today. A JetBlue spokesman says the airline has not decided what will be included in its fare bundles.

JetBlue appears to be warming to a first-bag fee to help boost its profits, which have consistently lagged what Wall Street has considered appropriate given the industry?s consolidation and solid profitability. The airline?s stock?up 32 percent this year?has also trailed that of its domestic rivals. While JetBlue commands a fare that?s premium to larger rivals on some routes, particularly to Florida, it also flies in many markets where it does not. That?s fueling a need for better financial returns. Moreover, JetBlue is willing to bet that even with a fee for a bag, many people will still find the carrier far more appealing than squeezing into the back of a United (UAL), American (AAL), or Delta (DAL) flight.

?What has happened over the last several years is, as some of our competitors have taken away more, the gap between what we offer and what they offer has increased,? JetBlue President Robin Hayes said on a conference call with analysts on Thursday. During the call, JetBlue executives pointed to the flexibility they would gain with new software allowing different products and services to be bundled, common on many European carriers and much like American Airlines does with its Choice Essential and Choice Plus fare bundles. Choice Essential, for example, offers one checked bag and boarding with the first group of economy travelers.

Fare buckets, with new fees, are also more financially attractive to JetBlue than adding seats to its airplanes, a strategy that?s gained wide popularity across the industry, including at Southwest. JetBlue believes that ?things like fare families is a much bigger source of immediate value generation? than adding seats, Hayes said. Still, Cowen & Co. (COWN) analyst Helane Becker isn?t certain that the airline will be able to make the switch to fees. ?[G]iven the company?s loyal customer base and brand focus we believe it will be difficult to implement a lot of what the Street is looking for,? she wrote today in a client note.

http://www.businessweek.com/article...line-needs-you-to-get-ready-for-a-new-bag-fee