Author Topic: Southwest to charge for checked bags  (Read 1358 times)

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Re: Southwest to charge for checked bags
« Reply #20 on: March 11, 2025, 10:19:38 PM »
Waiting for the videos with the pilots making fun of their airline, in typical Southwest fashion ;D
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Offline Dan

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Re: Southwest to charge for checked bags
« Reply #22 on: March 12, 2025, 04:14:07 PM »
https://www.dansdeals.com/more/news/airline-news/dans-rant-southwests-ceo-said-that-charging-for-bags-would-cost-them-more-than-it-would-make-will-you-prove-him-right/
Quote
CEO Bob Jordan, who already looks like a charlatan for his presentation from last September, has doubled down on gaslighting us. He said yesterday that these were changes Southwest employees were asking for, because they didn’t want to deal with twice as many checked bags as other airlines.
Link in this paragraph is broken @Dan

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Offline Dan

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Re: Southwest to charge for checked bags
« Reply #23 on: March 12, 2025, 04:20:04 PM »
Link in this paragraph is broken @Dan
Thanks, fixed.
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Re: Southwest to charge for checked bags
« Reply #24 on: March 12, 2025, 04:34:47 PM »
This is happens whenever PE buys out companies, they ruin the companies to get as many pennies as possible

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Re: Southwest to charge for checked bags
« Reply #25 on: March 12, 2025, 06:27:44 PM »
This is happens whenever PE buys out companies, they ruin the companies to get as many pennies as possible
As I commented in DDMS, even that doesn't make sense here. It was on target to do that in the beginning, but now this isn't even going to get them a short term gain.

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Re: Southwest to charge for checked bags
« Reply #26 on: March 12, 2025, 07:15:34 PM »
https://www.dansdeals.com/more/news/airline-news/dans-rant-southwests-ceo-said-that-charging-for-bags-would-cost-them-more-than-it-would-make-will-you-prove-him-right/

Excuse my ignorance, but in a case where you have this sort of hostile takeover, and it seems the CEO doesn't really have a choice, can he say, "look, we hate this as much as you do, but the shareholders are forcing us" or would that be seen as harming the company? Iow, is the CEO gaslighting because he has no choice?

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Re: Southwest to charge for checked bags
« Reply #27 on: March 12, 2025, 07:30:58 PM »
Excuse my ignorance, but in a case where you have this sort of hostile takeover, and it seems the CEO doesn't really have a choice, can he say, "look, we hate this as much as you do, but the shareholders are forcing us" or would that be seen as harming the company? Iow, is the CEO gaslighting because he has no choice?
That's why the other executives quit.

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Re: Southwest to charge for checked bags
« Reply #28 on: March 12, 2025, 07:32:20 PM »
As I commented in DDMS, even that doesn't make sense here. It was on target to do that in the beginning, but now this isn't even going to get them a short term gain.

I think the sort term is debatable, oil prices are coming down which can be a quik bump on the balance sheet but loyalty probably take longer to evaporate and feel the pain, legacy airlines make huge profits from ancillary charge’s along with the tax advantages… their stocks is in decline and they might as well hit rock bottom for a change to move up..
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Re: Southwest to charge for checked bags
« Reply #29 on: March 13, 2025, 04:02:56 AM »
What I think isn't being mentioned enough in discussions about southwest is where policies of two free bags and no assigned seats fit in Southwest's business model, not just their brand identity.

Dan mentioned it in his article
Quote
Who was asking for it?
...
The gate agents? ... And the ones that will have to figure out how to board a plane under even more aggressive turnaround times than before, all while losing the time advantage of open seat assignments and low carry-on usage.

The main point of no bag fees (which means less carry-ons) and no assigned seats (which has always proven to be the fastest and boarding system) was for faster and smoother turnarounds. Efficient turnarounds means you can run a tight schedule. Which fits an airline with a "deep" map instead of a "wide" one, meaning less routes, but many more flights per route.

Couple that with using only one airplane style (Boeing 737 variants) and you can run a more uncomplicated and consistent airline, with things like scheduling crews and maintenance being more simple. As opposed to say AA with its massive route map, and massively inconsistent experience (think American eagle on a tiny regional vs Intercontinental widebody) and its many tiers of pilot and fa qualification. (That might be the reason the 737max grounding had such a devastating impact on AA but not so much SW, even though SW had more of them)

No assigned seats also meant equipment changes were easier.

You go to a purpose-built Southwest terminal, like in DAL, HOU, or their terminal at DEN, and you see similar ideas. A focus on efficiency and convenience instead of "luxury."

In short, the brand identity is one thing, but the changes to its operations and therefore business model is imho the bigger story.

This leaves spirit airlines as the only US airline with a clear vision  :P

Offline Chuchum Ainer

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Re: Southwest to charge for checked bags
« Reply #30 on: March 13, 2025, 04:06:40 AM »
I also don't understand the focus of some commenters on DDMS on Southwest's stock price. A stock price and trajectory is not a marker of a company's health. It's rather a consensus on how investors see the company's health. Which is not the same thing.

Just because their stock price plummets doesn't mean they need to suddenly scramble to be more profitable in the short term.

Offline momar

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Re: Southwest to charge for checked bags
« Reply #31 on: March 13, 2025, 02:09:35 PM »
I also don't understand the focus of some commenters on DDMS on Southwest's stock price. A stock price and trajectory is not a marker of a company's health. It's rather a consensus on how investors see the company's health. Which is not the same thing.

Just because their stock price plummets doesn't mean they need to suddenly scramble to be more profitable in the short term.

Maskim, stock and a company are 2 different worlds. But in this case a PE firm bought a controlling stake and wallah these changes happen…. They’re known for coming in and getting a quick return..
Plus on that premise, investors that think a company is in great health and undervalued will invest..
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