Southwest wants to win more business passengers

Southwest Airlines (SWA) aims to attract more business passengers going forward, as an “integral part of its business strategy” through its route map and by investing in cabin comfort.

“I don’t see a move at this point to have dual-class service in the cabin,” SWA chairman, president and CEO Gary Kelly told attendees Wednesday at the Aviation Week MRO Americas conference in Dallas. “I’d never say never to anything,” he said, but “it is not an idea at this point.”

Along with adding business-select, an early-bird program and business traveler-friendly destinations as part these efforts, SWA on March 1, 2011 launched an enhanced rapid rewards program; so far “it’s passing all of our expectations, generating a significant amount of sales for us already,” Kelly said.

The carrier expects its integration with AirTran to generate $400 million in operating profits in terms of net synergies for SWA, “and we are very much on track to achieving those,” Kelly said, forecasting that SWA would achieve “something close” to $18 million in revenue this year, with AirTran being roughly a quarter of that. Complete integration is slated for 2015. FAA granted the two carriers a single operating certificate last month.

Commenting on its recent delivery of its first Boeing 737-800, Kelly noted, “The trends in our business are more long haul … we started out as a short-haul airline … we are gradually, especially over the last decade, evolving our airline to be able to better serve long-haul markets.” The -800, he said, “is a nod in that direction.”

In the near term, SWA will be implementing some temporary changes in its reservation system to accommodate some of the AirTran routes. “AirTran has some international service that we will want to maintain,” Kelly said. It will in the future replace its entire reservation system.

Kelly also called on the industry to work more closely together in Washington.

“Washington has a dramatic impact on aviation. We have excessive regulations; we have an excessive tax burden on the airlines. It would be helpful if we could work together to better tell our story.” He added, “We pay more tax for airline passengers than cigarettes or alcohol.”

Article Source : ATW Daily News