Southwest Airlines will now charge $25 for an unaccompanied minor and $25 for overweight or a third piece of luggage. They will also allow pets to fly and will charge a “pet fare” of $75. Up until last fall Southwest did not post a loss in 17 years, but it has had to post losses for the past three quarters, mostly due to their locked in fuel prices.
Southwest Airlines CEO Gary Kelly stated, “We truly believe in setting the right customer expectation and not charging for those amenities that a customer would ‘expect’ to get for free.” He also points out that all other major airlines in the US already charge these fees.
Although it might be disappointing that Southwest is adding some minor fees, I think it can be understandable in the given airline industry climate
Cuts, cuts, cuts. Airlines cutting routes, planes, and people seem to dominate the airline news. However this cut, has a little positive spin to it.
In 2008 US Airways had to let go over 1,300 positions, something no company enjoys. With declining revenues, US Airways had to make additional cuts, but didn’t want to resort to laying off additional people. Instead, the airline is asking flight attendants to volunteer to take 4 to 16 months off to allow the airline to save some cash.
The airline currently has over 6,600 flight attendants among their 33,000 employees.
I wasn’t able to find anywhere if the employees would be paid, so I contacted the kind folks over at US Airways. They stated that the leave is an “unpaid furlough”, but “flight attendants will be able to keep their flight privleges during the furlough.”
US Airways are not the only ones talking about future job cuts. Air France is looking at 3000 cuts, Delta 2000, American 1600, and on and on.
Part of me wonders how many of these cuts are needed and how many are these just an opprotunity to eliminate people at a time where it is becoming more and more accepted to lay off large numbers of hardworking people.
Virgin Atlantic and British Airways have had a cold war going on for years, according to Sir Branson. Now he is taking advantage of British Airways’ admission of financial difficulty by urging the British government not to financially assist the legacy carrier. He states that British Airways is, “not worth much.”
Although Sir Branson might be trying to stir up trouble, British Airways is not in the best financial shape. British Airways’ CEO Willie Walsh has a self-imposed June 30 deadline which he calls, “a fight for survival.”
He recently asked all 40,000 employees to work up to four weeks without pay in an effort to keep the airline afloat.
Sir Branson, who founded the privately held Virgin Atlantic, obviously has much invested if British Airways fails. “We and others are standing by ready to take on their routes and runway slots at Heathrow if they get into serious trouble,” Sir Branson stated re-assuring the government their nation would still have a viable transportation network.
A British Airways spokes person calls Sir Branson’s comments as “fantasy.” The airline stated, “There are no talks with the Government and there will be no talks. We have opposed state aid and our position has not changed.” Both British Airways’s CEO Walsh and finance director Keith Williams have announced they will work for free during the month of July.
Even if British Airways pulls through and Branson is just in fantasy-land, it is never a good sign having an airline (or any company for that matter) asking its employees to work for free. In this economic time, nothing is impossible and it will be interesting to see how this plays out.
