Even though I’ve flown a dozen or more airlines in my life, I actually felt true loyalty towards Southwest because of their amazing no fee policies. And it was worth playing the “check in quickly cuz there’s no assigned seats” game for all the other benefits. And we’ve flown so many flights as a family due to that. It removed all the stress from the ticket purchasing process.
This CEO is a freaking idiot. Is this an excel jockey/MBA a-hole like the kind that ran Boeing and Intel into the ground?
What’s wrong with the board that voted this idiot in?
An activist investor, Elliot, acquired a significant stake in the company and organized a shareholder revolt about Southwest's margins. Paraphrasing their presentation on the issue [0]:
Management Has Historically Ruled Out Industry-Standard Commercial Initiatives [like assigned seating, different seat classes, and checked bag fees]
The plan is to make SWA as similar as possible to other airlines to get their numbers to the same place, increasing the value of already owned shares. They don't care if it destroys SWA's customer base because they'll have sold off their stake by then.
They could have added something like $30-50 to each ticket, blamed inflation, and been done. They used to be the premium choice vs airlines like united, which charge way more for intentionally separate coach seats with no legroom or luggage allowances.
This CEO is a freaking idiot. Is this an excel jockey/MBA a-hole like the kind that ran Boeing and Intel into the ground?
What’s wrong with the board that voted this idiot in?