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Thursday, 3 September 2009

Southwest Airline's Creative Alternative To Baggage Fees

Posted on 17:13 by Unknown
Southwest Airlines is feeling the pressure to raise extra revenue.

In 2009, they might experience their first losing year since the 1970's. Analysts believe Southwest is losing hundreds of millions by not charging for checking in bags.

Now, Southwest came up with a creative alternative. Since they don't assign seats, they will allow customers to jump ahead in line by paying an extra $10.

It's possible that Southwest may start charging for bags in the future, depending on the economy. But, for now, they have substituted a voluntary source of revenue - as opposed to mandatory baggage fees.

It woudl be nice if the government could "think outside the box" - instead of raising taxes or piling on debt, they could keep a simple government and charge people add-ons they could voluntarily pay.
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