What Southwest Airlines is changing, from bags of bags to basic economy

Southwest Airlines He announced on Tuesday what was once unthinkable: it will begin to charge customers to verify their luggage.

It is a bet of $ 300 million. Last year, Southwest said his “rigorous research” found that he would lose both market share if bags began to collect bags. Politics has distinguished the southwest of its competitors for decades.

Getting rid of its famous strategy “Two Free Free Bags” is part of a massive impulse to the bearer to get rid of its advantages and policies of long -standing clients. Southwest also announced last year that he is moving from open seats to a single -class cabin to increase income. Another change announced Tuesday: basic economy tickets that do not allow free changes.

This is what travelers need to know about new policies:

Travelers buying any ticket, except the high -level Southwest business rate, will have to pay fees to verify the bags. Customers who buy a Select Business ticket can check two bags for free.

The members of the preferred frequent flying program from the top -level list A will also obtain two bags reviewed for free. The A-List members can check a bag for free, as well as those with a southwest credit card.

Southwest did not reveal how much it will cost to check a bag, but the rates begin at $ 35 each in competitors Delta, United and American.

The new marked luggage rates enter into force for tickets bought from May 28 or later.

Hand bag policies have not changed, even for basic economy tickets.

All tickets will include a free handbag, even for new basic economy tickets.

Southwest told employees on Tuesday, just after the announcement, that customers “will undoubtedly wear more luggage than before”, so they are taking some steps to try to keep things in motion.

Door agents will obtain mobile bag printers “that reduce the need for rope bag labels” and the company will design new hand -size guides so that customers can see if their luggage is adjusted as a continuous, according to a memorandum of Justin Jon Jon staff, EVP of operations, and Adam Dice, senior vice president of Network planning, a copy of the one that was seen by CNBC.

The airline also plans to accelerate the modifications of its Boeing 737-800 and maximum aircraft to include larger higher containers.

Probably. In the airport lobby, Southwest said it could redistribute staff to handle the changing needs of customers with the rules of the new bag. It will also equip the staff there with mobile printers.

“With an additional step for customers to pay the bags at the ticket counter or kiosks, we have to plan longer transactions and tail times, even if less customers check their bags completely,” the executives wrote.

Southwest has been under increasing pressure to increase income and improve returns after the Elliott Management activist coverage fund assumed a participation in the airline last year and pressed the changes in the carrier's business model.

Southwest's executives have long said to the investors and customers of Wall Street that their “two free bags” is sacred, something that distinguishes it from competitors.

On an investor day in September, the carrier said he would represent up to around $ 1.5 billion if he charged the bags but would lose $ 1.8 billion in market share of the policy change.

Lot! Southwest will launch a basic economic rate that is not reimbursable and does not allow changes. It will not allow tickets waiting on the same day.

Flight loans for these “basic” tickets, if not used, will expire in six months, while credits for other flights will expire in 12 months. Previously, the credits of the southwest did not expire.

The carrier last year said he plans to start selling tickets with assigned seats, finishing his open seat policy of decades. It will also soon offer seats with additional leg space, an offer to compete with more full service airlines.

The Southwest Airlines CEO Bob Jordan said on Tuesday that the airline's executive team believes that policy changes will generate records for their shared brand credit card.

He said that the new channels through the airline are selling tickets, such as ExpediaIt will help the carrier.

Southwest passengers will obtain rapid rewards frequent steering wheel miles depending on how much they pay for their ticket. Redemption rates will depend on flight demand, a model similar to what other carriers have.