Airlines Reporting Corporation (ARC)’s Post

🚨 Big Changes Ahead 🚨 Southwest Airlines is shaking things up! 🛫 In a groundbreaking move to boost profits, they’re moving away from their traditional open seating policy, embracing a more structured approach. Key Highlights: - 🌟 New Boarding Protocol: Expect faster and more efficient boarding processes. - 💺 Premium Seats: Get ready for premium seating options! Comfort and luxury are becoming new norms for frequent fliers. - 📈 Profit Focus: This change aims to enhance profitability through differentiated service offerings. This shift might revolutionize the airline’s service model. Will it set a new industry standard? ✈️ For business owners and travelers alike, it’s crucial to stay updated and adapt accordingly. 👉 If you’d like to sign up to our newsletter

Southwest Airlines since it's founding nearly 60 years ago plans to make changes to one of its activities in its core strategy by basically changing their open seating policy and moving to an assigned seating model .This is due to 46% drop in profits in second quarter of year and also based on continuous feedback from customers. Southwest is known for low cost and low fare model (cost leadership) basically targeting budget conscious customers. It has chosen all of its strategic choices by performing all its activities that reinforce each other to reduce costs by flying at secondary airports, open seat assignment , not selling tickets through agents/other sites , quick turn around time at gates, flying point to point , no baggage transfers etc and keeping aircraft more in air than at gate. However any company's strategy is never permanent. It will need to change based on context, customer feedback ,ever changing competitive environment etc . It will be interesting to understand how this one change will fit into its other core activities of Cost leadership. Does Southwest plan to compete head on head with leading airlines ? What made Southwest to lose revenue in first place ? Why are customers switching to other airlines? How customers preferences changed in recent years ? Thoughts ?? #strategy #Competitiveadvantage

📰 🚨 🗞️ Interesting news for many in the airline industry! Southwest Airlines, known for its unique boarding process, is set to make changes by 2025. The boarding system, loved by some and not so much by others, is undergoing a transformation. What will happen to loyal A List and A List Preferred status holders? Will their guaranteed good seating become more expensive or fall out of company policies? It's a reminder that every industry evolves to meet customer needs, with one constant: change is inevitable. As a dedicated Southwest Airlines A List Prefered status holder for decades myself, this is interesting 🤔 #SouthwestAirlines #AListStatus #CustomerService #IndustryChanges #Adaptability https://lnkd.in/ghknQ8pD

Do Southwest plans? ✈️ Manage your booking with ease! Whether it's changing flights, upgrading seats, or adding extras, you’re just a few clicks away from customizing your trip. Stay in control and make sure everything’s perfect before you fly. Ready to go? Let’s do this! 

Adding my 2 cents to latest statement by Southwest Airlines, here's what I think are the biggest disruptors of their business model post covid19. 1. Inflation even though it's measured at a national level surrounding 3% yearly since 2020, the impact on cost of living and relative expenses in the US is well above 7% yearly. This factor impacted labor costs severely on specific markets in the US which were key for Southwest (Florida, Texas, Arizona, and Colorado). Easy Example: 2 bedroom apartments rental in Miami/FLL area went from 1500USD (2020) to 2800USD (2024). 2. The expansion of Southwest Airlines operations to Tier1 airports was inorganic to their business model with only exception being Denver. This factor increased their cost of operation and catered to a customer with a higher GDP per capita which goes in determent of their business model 3. Slow integration of new technologies (lower efficiency), and almost non pricing gap against competitor's while maintaining 1 connection strategy against direct point to point. Example: I do several FLL-DEN or MIA-DEN legs a year. In the last 3 years Southwest is consistently the most expensive one of the carriers (United, Frontier, Spirit, and American). Same happens to MIA/FLL-LAX. Still there's no doubt they are the most successful airline in the history of aviation, and one of those that I love... ❤️ Southwest Airlines American Airlines United Airlines Delta Air Lines Spirit Airlines JetBlue Allegiant LATAM Airlines Avianca Group Lufthansa Group Caribbean Airlines Ltd Silver Airways International Air Transport Association (IATA) ALTA - Latin American & Caribbean Air Transport Association T.M.A.C The Modern Airport Conference Aviation Festival Americas World Aviation Festival CAPA - Centre for Aviation Miami International Airport Denver International Airport - City & County of Denver Dept of Aviation Texas Commercial Airports Association Jay Shabat Juan Camilo Davila Rupen Singh Philloura Molly Stemwedel Brian D'Amico Brian Sumers Fred Lazar Normanas Aerospace Edward Russell Ed Sims Iain Smith David Ulane, A.A.E., FRAeS Will Horton BermudAir #aviation #airlines #airlinenews #airports #aviationindustry

🛫 Exciting news from Southwest Airlines!🌟 Recently announced, Southwest Airlines is making some changes to their seating policies. They're saying goodbye to unassigned seats and hello to 'premium' options!✈️ This shift will offer passengers more flexibility and comfort during their travels. What are your thoughts on this update? Share your thoughts in the comments below. #SouthwestAirlines #TravelUpdates #FlyingChanges Read more about these updates in the BBC article linked below. Let's keep the conversation going! #AirlineNews [Link to the BBC article] https://ift.tt/xVzlG9g

Here are a few tips from airline personnel that may help maximize your comfort.

Southwest Airlines drops open seating. After over 50 years, #Southwest has significantly changed to attract new customers and improve its financial performance. The airline, recognized for its open seating policy, will now provide assigned seating options, including premium choices, for an additional fee. This decision is based on research demonstrating that "potential" customers prefer having a designated seat. The airline will also begin operating "red-eye" flights. These changes come as Southwest and rival American Airlines reported that nearly half of their profits slashed in the second quarter, which they announced on Thursday. American has also cut its outlook for the year, even as both carriers reported record quarterly revenue. #BusinessStrategy

Summary Elite status qualifying Tier Points are earned through flying or credit card spending only. Tier Qualifying Points for elite status can be earned with several co-branded credit cards. Other non-flying activities do not earn elite status qualifying points, but could help qualify for the valuable Companion Pass. Rapid Rewards is the loyalty program of Southwest Airlines.

Summary Elite status qualifying Tier Points are earned through flying or credit card spending only. Tier Qualifying Points for elite status can be earned with several co-branded credit cards. Other non-flying activities do not earn elite status qualifying points, but could help qualify for the valuable Companion Pass. Rapid Rewards is the loyalty program of Southwest Airlines.