Reported 3 months ago
Southwest Airlines has decided to eliminate its long-standing open-seating policy and adopt assigned seating in an effort to boost revenue amid disappointing financial performance. This change, initiated under pressure from activist investors, aims to attract premium travelers and enhance margins, but it risks alienating loyal customers who valued the airline's unique approach. While the company anticipates potential annual gains exceeding $1 billion from these changes, the reaction from customers remains uncertain, especially given previous surveys indicating a strong preference for the open-seating system.
Source: YAHOO