SW does sell tickets for $100 one way (or less) to Orlando from all over the country, doesn't charge for bags, doesn't arbitrarily charge a change fee, have the highest customer rating in the industry and MAKES MONEY DOING IT. You want us to believe that $449 is a reasonable price for a round trip ticket. The market place would disagree with you.
Southwest has an entirely different cost structure. It does not offer a global, worldwide network. It does not fly long-haul. It does not have multiple classes of service, It does not belong to a global alliance. It does not have multiple fleet types. A Southwest ticket will not be honored free-of-charge by another airline if a flight is canceled. The list goes on and on and on.
$449 is the price one-way. Full fare round-trip is $898. Whether or not that is reasonable depends on the person. People pay it, though, that's for sure. I rarely pay the discount fare myself, I often have no choice but to pay the refundable or instant-upgrade fare.
The only thing that is unfair is the unreasonable expectations of consumers. That is unfair to the airlines.
Southwest is also coming into major trouble. Their streak of profits ended last year and they are desperately trying to find new revenue sources because their model is no longer working. They tried to take-over Frontier Airlines essentially because it would eliminate a competitor.
And newsflash: Southwest is
rarely the lowest fare on routes they fly. It does a damn good job convincing the public it is, but it isn't. A look at MIDT fare data for the first quarter of 2009 shows that Southwest is the
not the low-fare carrier in over half the markets they fly. Check out the low-fare carrier on these routes from Orlando, all on which Southwest competes:
Albany: Continental
Austin: JetBlue
Baltimore: AirTran
Birmingham: Southwest
Buffalo: AirTran
Chicago: AirTran
Cleveland: Southwest
Dallas: American
Fort Lauderdale/Miami: American
Los Angeles: Delta
Phoenix: US Airways
Washington: US Airways
If you want to buy into the Southwest marketing gimmicks that they have the lowest fare, be my guest. They made money for 30 years convincing people not to bother checking the competition.
Southwest has excellent RASM and decent CASM figures, better than some of the majors, but they have simplicity in their business structure that other airlines don't have, and based on their vast route networks, other airlines can't have. Up until now, Southwest could afford to offer no change fees. Though the fuel hedging is gone and they are losing major revenue not charging for suitcase. They are desperately seeking new revenue streams such as the new "early boarding" and "business select" gimmicks, and its not working wonders.
As a frequent flyer myself, flying over 75,000 miles a year, the Southwest business model does not work for me as a customer. I see how it works for a leisure traveler, though. Southwest is far more friendly to the occasional leisure flyer, but American Airlines and network carriers are far more friendly to the frequent flyer.
And my analogy is not flawed.
Imagine if AA sold 100 tickets for $200 each and then seven days before the flight, all 100 people canceled for a $20 change fee. That is 100 seats and $18,000 down the drain. Good luck to AA filling those 100 seats in seven days. You just can't seem to get over the whole "big companies are evil" BS. They aren't evil. Flying is too cheap as is, people take it for granted. Airlines are largely to blame for putting themselves in this mess with fare wars that started in the late 1990s as the internet became popular and have created unrealistic consumer expectations as to how cheap airline fares should be. And until consumers wake up, airlines are just going to pile on the charges, and rightfully so. And Southwest is joining the game. They already have, just not with baggage and change fees yet.