Originally Posted by
FIIGMO
I think it is the same revenue and yes it has a bad connotation because the traveling public wants something for nothing. So we give them something for next to nothing and if the want extra they will just pay for it. I am sure all airlines would love to get rid of the nickel and dime and just charge what it costs. I agree though it sounds like we are getting something extra but I feel reality is different. SWA does not charge for bags for now (airtran still does and I bet SWA will bite the bullet and assume that little tid bit) but SWA also is not any cheaper than many airlines. Multiple stops, higher fares that one cant compare on the open market without a lot of work. SWA just appears to be cheaper and on the higher road of not charging for bags. But they are not stupid they make money for a reason, by forcing the traveler through their well thought out revenue system. As they get away from their system (al la ATL and angry airtran employees) they may just have to start charging for bags too.
They aren't stupid, but SWA didn't make much money in the latest quarter. They made such a big deal about not taking money for bags, and now they probably wish they had kept their mouths shut. People will pay for it, and they are fees, not taxable because they are in addition to the ticket, which is heavily taxed. As far as SWA goes in the future, I'm sure they will try to continue their same strategies, but they have grandiose plans of Hawaii flying, and maybe onward to something farther, which may take them away from their comfort zone. They also are trying to figure out if they want those 717s, which has gone against their single fleet strategy. Add to that the employee group is getting older (longevity), and more expensive. It won't always be easy for them, and they don't have the hedging advantage they used to OWN, and control the market. It's gone.