Its fares influence other airlines in many markets. Other low-cost carriers, notably AirTran and JetBlue, have copied and in some ways improved on Southwest's no-frills service. And its conservative financial management — it is the only major airline to have hedged most of its fuel needs — has kept it the only big airline to be consistently profitable.
In 2008, however, Southwest faces big challenges. Network airlines like American and United have reduced their costs, some by going through bankruptcy, allowing them to report profits in some quarters while competing directly against Southwest. Southwest needs to update its service, offering Internet connections or other tools on planes to attract business travelers. And its growth has slowed. That means it is hiring fewer new, lower-wage employees, pushing its average wages up and raising its costs. It faces negotiations with worker unions over new contracts that could further increase expenses.
Meanwhile, its founder and chairman, Herb Kelleher, and its president, Colleen Barrett, are both scheduled to retire from Southwest's board this year. While Gary C. Kelly has been chief executive since 2004, Mr. Kelleher and Ms. Barrett are the connection to Southwest's past and to its raucous culture. Mr. Kelly, a former certified public accountant who rose up on the financial side of Southwest, has worked to also embody the irreverent culture — dressing up like Edna Turnblad, the bouffant mom from the musical "Hairspray'' for last October's headquarters Halloween party. The question is if he can keep Southwest standing out from the competition by as much. — Jeff Bailey, Feb. 12, 2008
NO 1st or 2nd checked bag fees
NO fuel surcharges
NO snack fees
NO aisle or window seat fees
NO pillow or blanket fees
Southwest despises fees as much as the other airlines seem to love them. So they'll just keep taking care of you, rather than charging fees for the stuff that should come with your fare in the first place. Southwest Airline believes in not asking you to pull out your wallet every few minutes.
In addition to what you'll save with two FREE checked bags 50 pounds and under, they'll have great deals on their vacation packages! Some are listed below, and those sample prices listed for packages include:
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Roundtrip flight via Southwest Airlines
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Hotel accommodations & hotel taxes
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Rapid Rewards credit on flight
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24-hour traveler assistance
Prices do not include a $3.50 federal excise tax per takeoff and landing, airport taxes of up to $18 roundtrip per person, or a federal September 11th Security Fee of up to $10 roundtrip per person. Packages must be booked at least five days prior to departure before 6 pm Central Time
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Dreams really do come true Huge savings of up to $450 Walt Disney World® Resort Five-day advanced purchase required
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