General
Southwest Airlines Will End Its Longstanding Open-Seating Policy
The airline said it was scrapping its trademark, 50-year tradition of offering open seating, where passengers choose seats once they have boarded the plane.
Southwest Airlines will start assigning seats to passengers, ending its longstanding policy of allowing passengers to pick their seats once they have boarded, the airline said on Thursday.
The new procedure will be implemented to increase revenue and in response to feedback from customers, 80 percent of whom report preferring an assigned seat, Southwest said.
“This is the right choice — at the right time — for our customers, our people and our shareholders,” said Bob Jordan, the president and chief executive of Southwest.
Even though the airline has been known for its unique seating model for more than 50 years, preferences have evolved, with more customers taking longer flights where they prefer a seat assignment, the statement said. The new policy was reported earlier by The Wall Street Journal.
The changes bring Southwest, which for years has distinguished itself by offering low prices and a simple business approach, more in line with conventional airlines like American Airlines and United Airlines.
Southwest makes a little less than $1 billion from fees it charges for the ability to board early and “ancillary” services, Mr. Jordan said Thursday on a conference call with analysts to discuss the company’s second quarter results. The company expects that earnings from the move to assigned seating and offering seats with extra legroom will be “substantially north of that,” he said.
