On Tuesday, Southwest Airlines said it would end another long-standing policy that set it apart from other airlines as it began charging its checked baggage and was trying to raise revenue.
Customers with the highest loyalty status will be spared from the fees, but all others will have to pay for check bags for flights booked from May 28th. The announcement represents Southwest's latest decision to drop unique and engaging practices for its customers.
The airline has also added premium seats, ended its open seating policy and recently launched Red Eye Flight. When announcing these changes in September, the airline said it would retain its beloved bag policy.
When asked at investor meeting Tuesday at the investor meeting, Glen Hauenstein, president of Delta Air Lines, was a source of interest in other careers, he said: We'll see how it works. ”
Southwest has struggled in recent years to keep costs down and earn revenue, and is facing intense investor pressure to make changes. Other major airlines benefited from growing customer interest in premiums and international travel, but Southwest had no high-end offerings and routes to benefit from these trends.
Elliott, a hedge fund manager, saw the opportunity. Last summer, it said it had accumulated 10% stakes in the southwest and began seeking change. Elliott also called for the expulsion of Southwest CEO Bob Jordan, but he renounced the effort after the airline agreed to rock the board.
Customers who keep airline top loyalty status or buy the most expensive fares still get two free check bags, while others get one free check bag. The remaining customers will have to pay an amount that the airline has not disclosed.
Some customers from social media and industry observers criticized the move.
“I think today is what I remember as the day Southwest passed away,” Brett Snyder, a former industry insider who writes about aviation on the Crankie Flyer website, said in a post Tuesday. “That whole value proposition – everything that made it different disappeared faster than you could call “Eliott Investment Management.” ”
