A generation ago, the triple threat of the Sept. 11 terror attacks, the Great Recession and the “oil shock” that pushed crude prices to $147 a barrel sent airlines scrambling for new revenue sources.
Among the easiest was slapping fees onto checked bags. American Airlines was the first major carrier to introduce them in 2008, followed by United, Delta, Alaska, and JetBlue. And just like that, a freebie as reliable as a pillow and a bag of peanuts was free no longer.
Except on Southwest.
“With the customer top of mind, Southwest took a stand with the launch of ‘Bags Fly Free,’” recounts Southwest’s homepage. “Despite multiple financial crises, Southwest remained committed to customers and has repeatedly said ‘no’ to hidden fees as a way to succeed.”
But that ‘no’ has ended, as the baggage fees that Southwest first alluded to in March officially took effect May 27.
Market forces push brands into unpopular pricing decisions all the time, of course, but what makes this one different is that the free-bag policy was always more than a perk for Southwest. As one of the best-known advertising tag lines of the 2000s, “Bags Fly Free” is synonymous with Southwest, a cornerstone to its customer-friendly positioning.
And while extra fees will obviously generate the added revenue the airline desires, the bigger question is this: By grabbing for dollars at the possible expense of its brand image, is Southwest shooting itself in the foot?
“They may not be shooting themselves in the foot, but they’ve got to let go of the last reason to believe in the value proposition that worked for almost five decades and made them the most consistently profitable airline in the world,” veteran marketer Ian Baer, founder of agency Sooth, told ADWEEK.
As Baer sees it, nixing the free-bag policy is just the latest step in a gradual erosion of Southwest’s differentiation.
“It began four years ago with the quiet devaluation of frequent flier miles,” he said. “Then came the move to assigned seating and the creation of a business class section. And last year, they ended the policy of flight credits never expiring. If you’re asking what’s left to distinguish Southwest from any other major carrier, the unfortunate answer is: not much.”


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