Southwest Stabilizes Leadership in Air Carriers by Implementing New Customer Services

The Chicago Tribune reports that Southwest Airlines, the leading legacy American air carrier has recently EarlyBird Check-In service. For $10, a customer can be among the first boarding group with Rapid Rewards and Business Select members.

On the first day, 20,000 customers bought the service, providing $200,000 to the company's bottom line," Southwest Chief Executive Gary Kelly said.

"While [Southwest] has made it clear that they don't want to 'nickel and dime' their customers, they are beginning to tiptoe into ancillary revenue waters that other airlines have jumped into headfirst," wrote Michael Derchin, a research analyst at FTN Equity Capital Markets Corp.

Analysts expect Southwest to begin offering in-flight Wi-Fi service for a fee next year and possibly add a fee for a second checked bag. Some analysts anticipate that Southwest also will look at selling food on its flights, as most domestic carriers do.

What other customer-centric policies can Southwest Airlines implement to keep their bottom line holding strong?


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