Fare types were divided into four categories: 'Business Select,' 'Anytime,' 'Wanna Get Away Plus,' and the cheapest 'Basic' tickets. Currently, the fares page still displays 'Wanna Get Away' as an option, described by Southwest as its "base fare."
The most crucial change announced on March 11 was the elimination of the 'Bags Fly Free' perk, which allowed all passengers to bring two checked bags. Starting May 28, two free checked bags will be offered to Rapid Rewards A-list Preferred Members and 'Business Select' ticket holders. One free checked bag will be available to A-List Members, "other select Customers," and Rapid Rewards Credit Card owners.
"Customers who do not qualify for these free bag options will be charged for their first and second checked bags (weight and size limitations apply)," said Southwest Airlines.
The decision to eliminate free checked bags for all passengers and reduce the amount of Rapid Rewards points awarded to 'Wanna Get Away Plus' and 'Wanna Get Away' travelers aims to reward loyal customers further.
In addition, Southwest hopes to attract price-sensitive passengers by removing its competitive advantage against ultra-low-cost carriers and full-service airlines offering basic economy products.
Frontier Airlines responded on March 18 with a campaign promoting free checked bags for flights departing between May 28 and August 18. The statement read: "Some airlines have changed. They've raised fees, taken away perks, and made travel feel like a one-sided relationship. "
Barry Biffle, CEO of Frontier Airlines, commented that some airlines are moving away from services travelers appreciate while inviting potential customers to consider Frontier's promotion as the "ultimate 'divorce your old airline' deal."
Southwest anticipated negative reactions from competitors and passengers alike. Activist investor Elliott Investment Management (Elliott), which pressured the airline into appointing five board members in October following a proxy war beginning in June , may have influenced this shift along with other decisions , including layoffs announced in February .
During Investor Day in September , Ryan Green , Executive Vice President & Chief Transformation Officer (CTO) at Southwest Airlines said customers prefer ‘Wanna Get Away’ over basic economy due largely because of two reasons : “First our bags fly free policy ; second industry leading flexibility that stems from not charging fees for ticket changes or cancellations ”
Green noted that market research showed changing their bag policy would be “value destructive” estimating around $300 million revenue loss if removed . He added this was beneficial for shareholders which includes Elliott .
On February SEC filing revealed Green informed company his decision leave airline April
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