Wednesday

All Bags Fly for Free...Not Exactly

Southwest Airlines focuses its' advertising campaign and it's slogan attacking other airlines for their gratuitous use of fees. A big Southwest motto is that "Bags Fly Free," which is true unless you are flying on their wholly-owned subsidiary, AirTran Airways. Although it's been three years since the purchase, the fees still remain. AirTran still is an independent operation but Southwest is working on incorporating it and making it a part of the Southwest brand. This is a slow process but also bag fees are a strong source of revenue. The issue is that if Southwest Airlines prides itself on no fees but their subsidiary charges fees will this hurt the brand name.  The merit to Southwest Airlines motto may be tarnished a little bit but the divide between both companies helps distinguish one from the other. I believe that AirTran will have its best year once it's fully incorporated into Southwest.

Read the full article at: http://www.businessweek.com/articles/2012-03-28/at-southwest-not-all-bags-fly-free

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