Southwest Won’t Copy Rivals With a Basic Economy Fare
Photo Credit: Southwest, which has trademarked the made-up word "Transfarency," argues its straight-forward pricing approach is a competitive advantage. Southwest Airlines
Skift Take
Yet again, Southwest is choosing not to copy United, American and Delta. Its independent strategy has worked well for the last five decades, so why change what works?
Promising that Southwest Airlines does not plan to introduce a basic economy fare, CEO Gary Kelly blasted his competitors for treating some passengers like "second-class" customers.
At American Airlines and United Airlines, passengers who buy some cheap fares later this year will not be permitted to stow large carry-on bags.
Kelly, who has worked at Southwest for three decades, argued Thursday it's not prudent to risk the airline's brand's equity to squeeze more revenue from cost-conscious consumers.
"We have a very powerful brand," he said on Southwest's fourth quarter earnings call. "There is huge value in offering our customers — 100 percent of them — a great product. ... We strive to keep the customer experience and the p
