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Southwest Airways will supply assigned seats



Southwest Airways Co. will start providing assigned seats, ditching the free-for-all coverage that has been a defining characteristic of the provider for greater than half a century.

The airline introduced the seismic change to its enterprise mannequin Thursday alongside a brand new premium-class choice and plans for redeye flights. Whereas Southwest indicated earlier this 12 months that it was reconsidering the seating coverage, it’s now dealing with heightened stress to revamp underperforming operations from activist investor Elliott Funding Administration.

The steps characterize a strategic shift for the provider, which has steadfastly maintained open seating whereas different airways raked in income by charging further for more-desirable seats. That unfulfilled alternative is a significant tenet of Elliott’s marketing campaign — that Southwest has refused to modernize its enterprise to attraction to at the moment’s vacationers.

Adoption of premium seating might open the door for the provider — which has lengthy appealed primarily to leisure vacationers — to doubtlessly supply business- and first-class sections sooner or later.

Southwest nonetheless received’t cost for checked luggage. The “luggage fly free” coverage has been a focus of Southwest promotions and ads, and a few analysts have speculated charging for luggage might price the airline prospects. It’s the one US provider that doesn’t impose charges to test two.

Southwest will start providing assigned seats and premium seating with extra legroom subsequent 12 months. It’ll begin flying in a single day, cross-country routes on Feb. 13. These flights are on the market from Las Vegas, Los Angeles and Phoenix to Baltimore/Washington Worldwide Thurgood Marshall Airport; Las Vegas to Orlando; and Los Angeles to Nashville.

Particulars on which seats will carry charges and the additional price are nonetheless being determined, Southwest mentioned. All seats will likely be assigned, however there received’t be a separate cabin for premium choices. The provider has studied numerous seating choices up to now, however all the time rejected a shift to assigned spots, saying passengers didn’t help such a transfer.

Current Adjustments

Whereas Southwest has lengthy stood by a few of its central insurance policies, it hasn’t been solely resistant to alter. It started routes to close by worldwide locations and, extra lately, added flights to Hawaii. The airline beforehand revamped its boarding system, provided early boarding choices at an extra price and developed a company reserving device to win extra enterprise vacationers.

Southwest mentioned in April that it had begun evaluating premium merchandise and others adjustments, properly earlier than Elliott disclosed a $1.9 billion stake final month. However till Thursday, the airline mentioned it wouldn’t disclose any particulars till an investor assembly slated for September. 

Elliott needs to oust Chief Govt Officer Bob Jordan and Chairman Gary Kelly for poor execution and a “cussed unwillingness to evolve the corporate’s technique.” They’re “lower than the duty of modernizing Southwest,” the activist has mentioned.

Southwest earlier this month named a veteran airline business govt to its board to assist deal with different issues raised by Elliott. The provider additionally adopted a “poison capsule” shareholder rights plan to discourage the activist from gaining a bigger share.

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