Southwest Airlines will charge to check bags | Hacker News Reader

Southwest Airlines will charge to check bags

cnbc.com

4 pointsBeetleB7 comments

>Southwest’s changes come after months of pressure from activist Elliott Investment Management. The firm took a stake in the airline last year and won five board seats as it pushed for quick changes at the company, which held on for decades — until now — to perks like free checked bags, changeable tickets and open seating.

Is this just a short term thing for them? Invest, squeeze customers for some good quarters and take profits?

I could understand larger topics but board members pushing granular changes / decisions seems like an inherently bad idea.

Also worth noting: The person - who did the forecast showing Southwest would lose more money than what baggage fees will bring in because they'll leave to other airlines - was fired.

I was a loyal customer. No more.

Based on the material results of the Tesla boycott, perhaps Southwest customers can come together to boycott the airline until Elliot divests and moves on.

> I was a loyal customer. No more.

Same.

Also from elsewhere:

> Southwest Airlines CEO Bob Jordan said Tuesday that the carrier’s executive team thinks the policy changes will drive sign-ups for its co-branded credit card.

Wow. They are making major changes to the airlines to boost a credit card.

This is actually a huge part of a modern airline's business. There's an interesting Wendover video[1] that argues the airline operations of the legacy carriers is just a loss-leader for their financial functions like credit cards, points partners, etc. United (my home airline) recently adjusted their frequent flier system to basically stop anyone without a credit card or tons of business travel from getting status. Looks like Southwest wanted a piece of that pie.

[1] https://www.youtube.com/watch?v=ggUduBmvQ_4

Yeah, but how good are their CC's?

With Capital One, I get 2% credit I can use towards any travel (not specific to an airline, hotel, rental, etc). Does any airline's CC give me a better deal?

Between this and the end of free seating, I suppose I will be running down my points and switching to a different airline now. What a shame to see short term profit once again gut everything that makes it a unique product.

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