freightdogfred
Malcontent
- Joined
- Nov 16, 2002
- Posts
- 990
Southwest has a very profitable business model that does not rely on baggage fees to generate revenue. Conversely, the wholly owned subsidiary relies substantially on baggage fees to remain profitable.
Au contrare, Pierre...As the wholly owned subsidiary is now operated by remote from the mothership, revenue generated per aircraft is higher for the subsidiary than a Southwest aircraft. Southwest controls all ticket pricing and associated costs for operation, yet realizes greater yield due to lower costs and increased revenue from the bag fees.