Southwest Airlines throws out free check bags for all customers. This is part of a broad business overhaul that will remove some policies that have long been differentiated from their competitors.
Starting May 28, airlines will charge check bag fees to customers who are not upper-level members of the Frequent Flyer Program, those who do not have Southwest brand credit cards, and customers who are charged to everyone except for the most comprehensive “Business Select” fares.
Southwest is also intended to introduce a “new basic fare” that offers lowest-price options that day. According to the airline, the changes will “in advance” of previously disclosed plans to begin seat allocations and claims for seats outside of Regoom.
Southwest is also repealing flight credits that do not expire. Starting May 28th, base fare carrier flight credits will expire six months after issuance, while all other fare credits will expire one year later.
“These strategic moves aim to deepen and reward loyalty between the Southwest and their most engaged customers, creating new opportunities to reach consumers who value fares more than everything else,” says Southwest.
Career CEO Bob Jordan adds that the change will bring Southwest “to attract new customer segments that don't compete today, returning to the level of profitability that both us and our shareholders expect.”
Southwest has been in turmoil recently as managers attempted to rebuild their careers following inadequate financial outcomes.
Changes driven by Southwest's major shareholder, Elliott Investment Management, include throwing away a number of policies that distinguish airlines, such as open seats and free check bags.
With the shift, Southwest adopts a fare model that is essentially similar to that of all US competitors. Today, most US airlines sell a number of brand fares, including premium fares and barebone base fares, as well as additional services to varying degrees.
