Wed, Aug 11, 2010
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.
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