Quote:
Originally Posted by Bdywax
Southwest doesn't charge for bags due to software issues. They tried to change the software several years ago, but wasted tons of money due to internal fighting. They decided to stick with the model they had and it is currently working for them. Believe me, if they could charge for luggage, they would be. With that said, Southwest now has the highest average ticket cost of any airline that flies in the U.S.. This is due to the way they structured some of their financing years ago.
Sorry, that makes absolutely no sense to me. If Southwest thinks it makes financial sense to implement bag fees then they will do so. Only one person would make that decision and that is Gary Kelly, who while CFO actually headed up the Technology department on an interim basis. To assert that they can not implement a technological solution for charging bag fees is beyond ridiculous. Whatever costs they incurred previously are all sunk costs and irrelevant to the current decision.
As for costs, there are many reasons why an airline's costs may increase relative to competitors including fleet age, current labor contracts, and oil hedges. However, since Southwest doesn't charge bag fees or change fees this is an apples to orange comparison.