01/08/09, 13:07:24 UTC

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Southwest's boarding policy on the hotseat

usatoday.com

With a slowing economy and rising oil prices, Southwest is flying into financial turbulence and must implement some changes in order to continue to compete effectively in the ruthless world of airline travel.

Just when I finally figured out how to master the unreserved seating on Southwest Airlines, the longstanding policy of open seating may soon be out the window. In a recent meeting with Wall Street analysts and investors, Southwest Chief Executive Officer Gary Kelly outlined a plan to curb growth, make undisclosed "enhancements" to Southwest's low-fare structure and Rapid Rewards frequent flyer program, and to unveil "a new boarding/seating method".

No longer protected by hedges that kept the airline's fuel costs below market levels, Southwest is facing increased competition from recently restructured legacy airlines and a cast of low-cost Southwest wanna-bes crowding the sky. Southwest's profit margins are thinning and the airline is in danger of ending their remarkable consecutive steak of 64 profitable quarters, prompting its leaders to take some corrective action now.

But just what can Southwest do to lower costs and attract new revenue? In recent years, the discount airline experimented with reserved seating, and many airline industry experts believe that Southwest's longstanding open seating policy may be on the chopping block. No more open seating on Southwest? If Southwest abandons open seating what else is sacred?

I must confess that for many years I avoided Southwest because of that open seating policy. Loathe to stand in line for the cattle call boarding ritual I shunned the discount airline.

But then came Internet check-in. Now suddenly, I can check-in online and assure my place in the coveted "A" group that boards the airplane first. With Internet check-in I no longer have to stand in line. I can simply hang out in the boarding area working or reading until the "A" group is boarding the airplane. Then I casually alight from my seat and slip into the line as the last "A" passenger enters the jetway assured that plenty of aisle seats remain once I am aboard. And, if the flight is not completely full, I can often negotiate an open middle seat next to me if I carefully select a row near the rear of the airplane where another passenger has already settled into the window seat.

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Internet check-in, along with pillows, complimentary in-flight snacks, and more room between rows than on most other airlines, makes flying Southwest a very attractive option these days when so many other airlines have cut costs and amenities. But after Kelly's speech I fear that big changes are in the offing and the reasons I choose Southwest could soon disappear.

In some ways it seems unlikely that the airline could go entirely to reserved seating. Southwest is the airline that invented the 20 minute turnaround that all others aspire to. But a complete move to reserved seating would most certainly obliterate the 20 minute turnaround and adversely impact the airline's economics, so such a drastic step seems unlikely.

Following Kelly's speech, rumors began spreading that perhaps Southwest would adopt what some other airlines have done by charging more for certain preferred seats like an exit row. Although it is probably a good way to earn revenue, this idea would also slow down the boarding process.

Though the airline originally appealed primarily to leisure travelers, Southwest has taken major steps of late to court business travelers by flying into major business centers like Chicago, Philadelphia, and Pittsburgh with high frequency service. And the airline recently announced an agreement to distribute its inventory directly for the first time to thousands of business travel agencies that use the Galileo computerized reservations system.

One possible way to attract more business travelers is to offer reserved seating or a higher boarding priority for these folks. This might be implemented without adversely affecting the regular boarding process. But who are these special travelers who might be singled out for reserved seating or an early boarding priority and how would they be separated from the rest of the herd? Are they travelers who paid a higher price for their ticket or paid an additional fee to board first?

This is the scenario that seems most likely and it is probably a fair way to decide who gets to board the plane first, although this change will seldom benefit me. Like many business travelers, I fly Southwest often and usually find a low fare if I can purchase my ticket in advance. If the highest paying business travelers are automatically placed in the "A" group, does that push everyone else down a notch?

I don't think I am the only one who would balk at special treatment for those willing to spend more. Although more business travelers might choose to use Southwest with priority boarding or reserved seating, I'll bet the airline will lose many travelers who love Southwest and prefer the current open seating policy.

And how would priority boarding or seating impact Southwest's philosophy? These changes go against one of the fundamental principles on which Southwest was founded: equality for all. To now say that some passengers are more equal than others is a major philosophical change that could pull Southwest away from its successful one-size-fits-all business model.

So while I understand that Southwest must reinvent itself to remain competitive in this rapidly changing world, I truly hope they leave their open seating intact. For a traveler willing to work the system, it's a perfect setup.

 Printable Version  | published Jul 09, 2007