Southwest Airlines Co., trying to win more business travelers, plans to spend as much as $40 million on changing boarding procedures to trim the time passengers wait in line and on sprucing up gate areas.
The change, first announced last month, will be implemented next week at the main Dallas hub and by early November at all 64 airports Southwest flies to, the carrier said today at Dallas's Love Field. The airline still won't assign seats, saying tests showed that would slow boarding and wasn't favored by travelers.
Southwest, the largest low-fare airline, is the only major U.S. carrier that doesn't assign seating. Cutting the time passengers spend in line is part of a push to lure more business travelers, who generally buy tickets just before travel and pay higher fares as a result. The Dallas-based carrier is struggling to blunt rising fuel and labor costs.
"In the past, what's worked well for us was one-size-fits-all," Chief Executive Officer Gary Kelly said at an event to show the remodeling at Love Field. "Now we think we can do a better job of meeting business travelers' needs. At the same time, we're making investments for our families and leisure travelers."
Southwest estimated the cost for its changes at $30 million to $40 million. Under the new system, passengers won't have to stand as long, so the airline is also spending to make its waiting areas more comfortable.
The company is building family friendly areas at its airports that will have flat-screen televisions with children's programming, along with low, child-size tables and chairs. The carrier is also adding padded, leather chairs and workstations with stools, tables and ports for power and computer connections.
Southwest expects to have the remodeling done at the largest cities in November and to finish makeovers at all the airports in the first half of 2008, said Edward Shelswell-White, the carrier's director of properties.
