But The Staffing Makes the Difference

News/Analysis By ANN E-Media Producer Paul Plack

The airlines that soak you with all the a la carte fees like to point to how those fees are being well-received, benefit customers who don't bring checked bags, and have provided important new revenue streams which have kept the carriers out of bankruptcy. So, you might wonder how Southwest Airlines can buck the trend and stay afloat.

Southwest CEO Gary Kelly answered that question in addressing about 6000 attendees at the National Business Travel Association's annual convention in Houston on Monday.

In remarks reported by the Houston Chronicle, Kelly told the group that 35 to 40 percent of his customers are business travelers who are on the road more as the economy recovers. But he says leisure travel on Southwest is also up, in part because fliers can bring two checked bags at no extra cost.

In July, Southwest reported second-quarter operating revenue of 3.2-billion dollars, up from 2.6-billion a year earlier. "We're outperforming every single US airline when it comes to revenue. Anecdotally, 'Bags Fly Free' is a component of that. We've seen a significant chunk of revenue go away from the industry and go to Southwest Airlines.

"The evidence is pretty clear that we're doing something different from the industry and getting credit for it."

Maybe so, but the cabin crews may also have something to do with it. On my recent marathon to help ANN cover Rock Falls, Oshkosh and Mentone, I flew on Southwest. The people were cheerful and competent. I made it a point to thank them as I deplaned after arrival, and tell them they have an awesome airline. Try it - the smiles get even bigger.

FMI: www.southwest.com