But this doesn't even look like someone prioritizing short-term gain, not at least directly. When someone is directly prioritizing short-term gain, they are increasing volume/revenue and cutting costs in unsustainable ways, knowing that there is going to be a point of no return in the near future
I'm not sure we're talking about different things here. Well other than yes they are getting short-term gain out of the customers because they now had paid stuff that wasn't paid before: baggage fees, assigned seats and of course CCs (both in raising the annual fee and attempting to get consumers locked into a branded CC for a benefit they used to get for free without it (luggage and no need to use it for a boarding benefit). It's been said one of the most lucrative things for airlines is baggage fees.
This is what Elliott Management's M.O. is. They are not treating SWA any different down to the way they force out prior management in order to make it their own as well as force what they want to happen. This isn't about what SWA has done in the past this with expansions, airport contracts, tech issues and the like. That's just the smoke screen and I don't mean that conspirator way I mean that because it's a good way for someone to try and explain how they do this to basically every company they take on.
The short term is that they only care about the company for the short term, making decisions that are in it for what it can get them now not what the long-term impact would be of making such decisions and this is more in your face with how they go about it since their norm is to by very aggressive and hostile at getting changes they want through by just about any means possible.
As far as short term gain they are cutting costs in unsustainable ways. It's a narrow way of defining short term gains by talking about it like it's about unskilled or cheap labor or sales.
They removed the included luggage something of which the CEO publicly and loudly said wouldn't happen because that was the core of their business. They brought in assigned seating charging what can be a high price for just a middle seat, they brought back expiring credits which to that point that's a more gray area because having that on the books for an eternity is a problem with many companies not just the airline industry (think company benefits like PTO and sick pay).
They changed the entire way of doing flights removing non-stops in favor of connections which increasingly is making it harder for people to get from Point A to Point B with any reasonable time. We booked Costa Rica for May and a good amount of their flight options available per day were 15-20 HOURS+ because of connections.
This is the day we selected to go, a Saturday
This is the next day a Sunday. 2 flights use the same flight from Houston back to KC and the remaining 4 use the same flight from Houston back to KC.
This is coming back home which if obviously means there's only 1 option and it's the same flight for both options leaving Costa Rica
If selected Sunday where all flights are the same leaving Costa Rica
SWA wasn't in the best of shape before they took over and were increasingly having trouble finding ways out of it but it's also looking at knowing how this particular private equity/hedge fund does business. From Enron restructuring, to TWA, to Cabelas with Bass Pro to Aetnahealth to a slew of other companies, rarely do the companies end up better off with their interference. That's a big reason why you're seeing so many of these changes so rapidly and seemingly without much consideration to the end effect. People who didn't fly SWA much thought they were getting just an airline now that would do assigned seats, that's only a small part of what has been happening with the company.