For years several friends and I have argued over what Southwest Airlines will do when this happens or that happens. We have come to agree that Southwest will do whatever it takes to make a profit.
Jack Welch, former head of GE, said it best: You have to deal with the world as it is—not as you wish it was, or even as it should be. Southwest must agree with Welch.
Lately, we have all wondered what Southwest would do when its future contracts for fuel yield smaller and smaller savings. Well, now we know. The futures contracts are indeed now diminishing in importance and Southwest is reacting.
Southwest is doing everything other airlines are doing in this era of high fuel and tough competition. But, as usual, they are doing it with a difference.
Southwest has cut flights, parked airplanes, and raised prices. The difference is, Southwest is still friendly.
Current Southwest ads brag that quoted fares are total fares, with no hidden fees. In fact, they will even allow you to buy from a real live person over the phone for the same price as buying online! You can check two—count 'em, two—bags free and sodas, juice, coffee, and water are free.
Not only that, but at every point in the process they act as if they appreciate—rather than resent—your business.
Folks, Southwest knows how to handle "friendly cheap." I doubt anyone can beat them at it. They've been doing it—profitably—since the 1970s. It's their thing.
I remember when the big-boy airlines decided that they had to compete with Southwest on price. The attitude of everyone the customer dealt with seemed to be a snarl, saying "If you want cheap fares you're gonna suffer for it, jerk." That attitude seems somewhat the same today.
But, to paraphrase "Old Man River," Southwest just keeps on rollin', proud to be providing friendly cheap.
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