Southwest ends open-boarding policy
Friday, 9 November 2007
Southwest Airlines abandoned its longstanding first-come-first-served approach to seating yesterday, giving business travellers, who pay the highest fares, first choice in boarding.
Those travellers will also receive extra frequent-flier credits and a free alcoholic beverage, in a move the airline expects to bring in an additional $100 million a year.
Southwest, which for 36 years has competed with low fares and a simple business approach, is becoming a more complex company. The number of fares it might offer on a single flight, for instance, is increasing to as many as 15, from the current 8.
The changes are prompted by increased competition from traditional carriers like United Airlines and American Airlines, which have reduced their costs in recent years and can now profitably offer many fares equivalent to Southwest's.
Rising fuel prices, meanwhile, have forced the airlines to increase fares. For Southwest, attracting more business travelers is crucial in seeking more revenue per ticket.
While Southwest will be competing more aggressively for business travellers, its changes could actually help other airlines by generally lifting fares.
The changes are intended "to create a reason for people to give us more money," the chief executive, Gary C. Kelly, said in a telephone interview. "We've not done that in the past very well." — Internet
Those travellers will also receive extra frequent-flier credits and a free alcoholic beverage, in a move the airline expects to bring in an additional $100 million a year.
Southwest, which for 36 years has competed with low fares and a simple business approach, is becoming a more complex company. The number of fares it might offer on a single flight, for instance, is increasing to as many as 15, from the current 8.
The changes are prompted by increased competition from traditional carriers like United Airlines and American Airlines, which have reduced their costs in recent years and can now profitably offer many fares equivalent to Southwest's.
Rising fuel prices, meanwhile, have forced the airlines to increase fares. For Southwest, attracting more business travelers is crucial in seeking more revenue per ticket.
While Southwest will be competing more aggressively for business travellers, its changes could actually help other airlines by generally lifting fares.
The changes are intended "to create a reason for people to give us more money," the chief executive, Gary C. Kelly, said in a telephone interview. "We've not done that in the past very well." — Internet