Why Do People Say Southwest is a Low Cost Carrier?
#16
Join Date: Aug 2012
Posts: 6,752
Ah, to me, they still are a "low cost carrier."
Semantics aside, I take the term to mean the "best bang for your buck" thing. While I'm surely ignorant of many routes, I do know the SFO - LAX/LAS ones quite well. What I can assert is that, unless one's a top elite at one of the legacies, I can't fathom a reason why anyone wouldn't choose WN at the same or similar price point. I mean, you get the full refund/free change thing, free checked bags and assured decent boarding, assuming one can make the effort to check in at T-24. And, as someone above observed, no barbie/twinkie jets. And, personally, I like their boarding process, which I find idiot proof. Unlike the big 3 or 4, you don't get confusion and the perennial gate lice thing.
As to irrops, I would be so lucky and use my CCs insurance and go to town on them for the $500 - $1,000, or whatever coverage amount.
Semantics aside, I take the term to mean the "best bang for your buck" thing. While I'm surely ignorant of many routes, I do know the SFO - LAX/LAS ones quite well. What I can assert is that, unless one's a top elite at one of the legacies, I can't fathom a reason why anyone wouldn't choose WN at the same or similar price point. I mean, you get the full refund/free change thing, free checked bags and assured decent boarding, assuming one can make the effort to check in at T-24. And, as someone above observed, no barbie/twinkie jets. And, personally, I like their boarding process, which I find idiot proof. Unlike the big 3 or 4, you don't get confusion and the perennial gate lice thing.
As to irrops, I would be so lucky and use my CCs insurance and go to town on them for the $500 - $1,000, or whatever coverage amount.
#17
Join Date: Nov 2018
Location: NYC
Programs: AS 75K, DL Platinum
Posts: 631
Fair point. Two responses:
a) LCC as you say means lower costs usually from lower services. But SW is probably the most generous in terms of service (two free checked bags, free carry on etc.)
b) LCC don't just have lower costs for the hell of it. All of the EU LCCs pass on those saving in the form of lower fares but SW fares are probably more expensive than the cheap (no service) fares from UA, AA etc.
a) LCC as you say means lower costs usually from lower services. But SW is probably the most generous in terms of service (two free checked bags, free carry on etc.)
b) LCC don't just have lower costs for the hell of it. All of the EU LCCs pass on those saving in the form of lower fares but SW fares are probably more expensive than the cheap (no service) fares from UA, AA etc.
Remember, this term originated internally as part of communications with Wall St. That means it’s about PnL/business strategy at the time the term was invented, not what customers perception of the brand is today. It’s the same reason people still refer to big tech as FAANG, even though MSFT currently has a higher market cap than 4/5 of those companies.
#18
Suspended
Original Poster
Join Date: Aug 2019
Posts: 200
If they are not true then:
a) Name me other LCCs that gives you free baggage and free carry on?
b) Name me other LCCs that charge comparable fares to legacy carriers on so many routes?
That's my point, people keep on calling SW a LCC but its like no other LCC I know off. The LCC and ULCC start of with a ridiculously low fare and then nickel and dime you for everything. I remember EasyJet would actually charge for printing boarding passes at the airport!
a) Name me other LCCs that gives you free baggage and free carry on?
b) Name me other LCCs that charge comparable fares to legacy carriers on so many routes?
That's my point, people keep on calling SW a LCC but its like no other LCC I know off. The LCC and ULCC start of with a ridiculously low fare and then nickel and dime you for everything. I remember EasyJet would actually charge for printing boarding passes at the airport!
These simply aren’t true. A LCC could have lower operating costs for any number of reasons. For example, WN flies almost exclusively 737s, which reduces their pilot training costs. They have their own reservation system, which means a lower IT and vendor budget. Their award redemption options are more limited, which reduces the liability of unused miles on their balance sheet. Their network is smaller, so they assume less risk when starting new routes. etc etc etc.
#19
Join Date: Nov 2018
Location: NYC
Programs: AS 75K, DL Platinum
Posts: 631
If they are not true then:
a) Name me other LCCs that gives you free baggage and free carry on?
b) Name me other LCCs that charge comparable fares to legacy carriers on so many routes?
That's my point, people keep on calling SW a LCC but its like no other LCC I know off. The LCC and ULCC start of with a ridiculously low fare and then nickel and dime you for everything. I remember EasyJet would actually charge for printing boarding passes at the airport!
a) Name me other LCCs that gives you free baggage and free carry on?
b) Name me other LCCs that charge comparable fares to legacy carriers on so many routes?
That's my point, people keep on calling SW a LCC but its like no other LCC I know off. The LCC and ULCC start of with a ridiculously low fare and then nickel and dime you for everything. I remember EasyJet would actually charge for printing boarding passes at the airport!
How about instead you name a legacy carrier that has historically had lower operating costs than WN?
If your point is “Southwest offers great value for many people,” or “Southwest is better than Spirit,” then sure. I agree. But that’s not the origin of the term LCC.
#20
Join Date: Oct 2019
Location: PDX, OGG or between the two
Programs: AS 75K
Posts: 2,865
I've always thought of Southwest as the McDonalds of carriers. They have the most customers and generally make a lot of money (the most?) but few would say they are the best from a quality standpoint. Don't get me wrong - I've flown Southwest many times and will in the future. Just like I've eaten at the golden arches. I just don't set out to Southwest when I'm looking for the best the aviation industry has to offer. I also really like what their stock does in my IRA!
#21
Join Date: Feb 2009
Location: USA
Programs: Chase Sapphire Reserve, WFBF
Posts: 1,573
The confusion seems to stem entirely from people who don't understand the difference between "cost" and "price". Fundamentally, businesses make money by selling something at a price that is greater than their cost (margin = price - cost). The most successful businesses in the world have high prices and low costs.
Whether WN's operating model is similar or different to other LCCs is beside the point. They are typically classified as a LCC because their cost structure is lower than the legacy airlines.
Whether WN's operating model is similar or different to other LCCs is beside the point. They are typically classified as a LCC because their cost structure is lower than the legacy airlines.
#22
Join Date: May 2018
Location: Tokyo
Programs: Bonvoy LT Titanium ANA Diamond
Posts: 763
If they are not true then:
a) Name me other LCCs that gives you free baggage and free carry on?
b) Name me other LCCs that charge comparable fares to legacy carriers on so many routes?
That's my point, people keep on calling SW a LCC but its like no other LCC I know off. The LCC and ULCC start of with a ridiculously low fare and then nickel and dime you for everything. I remember EasyJet would actually charge for printing boarding passes at the airport!
a) Name me other LCCs that gives you free baggage and free carry on?
b) Name me other LCCs that charge comparable fares to legacy carriers on so many routes?
That's my point, people keep on calling SW a LCC but its like no other LCC I know off. The LCC and ULCC start of with a ridiculously low fare and then nickel and dime you for everything. I remember EasyJet would actually charge for printing boarding passes at the airport!
It is really a waste of time argument, , all that matters is what matters to you, total cost of providing what you want .
#24
Join Date: Oct 2016
Posts: 3,705
As others have noted, when WN launched in Texas their cost structure was far lower than everybody competing with them. It was a huge gap between, say, TWA and Southwest, and because of that WN could offer fares that nobody else could match.
Whether it was an industry analyst or a passenger looking at the term "LCC" from their own perspective, it didn't matter - it was much lower costs and much lower fares. Today, the lines are all blurred, although Southwest's model still makes a lot of sense operationally speaking. I don't directly trade individual airline stocks, but if I did Southwest would be more attractive to me than most of the others.
All of the other reasons, like assigned seating and first class, are simply product offering choices. In some ways, Southwest has become a premium-service airline in the U.S.: no junk fees, no barbie jets, no nonsense like Economy Minus. And their biggest competitive advantage: a plethora of nonstop flights, eliminating the giant hubs. The features they *don't* have - like a premium cabin and lounges - mostly become important to me on long-haul flights which they don't have anyway.
Whether it was an industry analyst or a passenger looking at the term "LCC" from their own perspective, it didn't matter - it was much lower costs and much lower fares. Today, the lines are all blurred, although Southwest's model still makes a lot of sense operationally speaking. I don't directly trade individual airline stocks, but if I did Southwest would be more attractive to me than most of the others.
All of the other reasons, like assigned seating and first class, are simply product offering choices. In some ways, Southwest has become a premium-service airline in the U.S.: no junk fees, no barbie jets, no nonsense like Economy Minus. And their biggest competitive advantage: a plethora of nonstop flights, eliminating the giant hubs. The features they *don't* have - like a premium cabin and lounges - mostly become important to me on long-haul flights which they don't have anyway.
#26
Join Date: Sep 2013
Location: Peoria
Programs: Southwest, Best Western Gold, La Quinta, Dollar
Posts: 819
If they are not true then:
a) Name me other LCCs that gives you free baggage and free carry on?
b) Name me other LCCs that charge comparable fares to legacy carriers on so many routes?
That's my point, people keep on calling SW a LCC but its like no other LCC I know off. The LCC and ULCC start of with a ridiculously low fare and then nickel and dime you for everything. I remember EasyJet would actually charge for printing boarding passes at the airport!
a) Name me other LCCs that gives you free baggage and free carry on?
b) Name me other LCCs that charge comparable fares to legacy carriers on so many routes?
That's my point, people keep on calling SW a LCC but its like no other LCC I know off. The LCC and ULCC start of with a ridiculously low fare and then nickel and dime you for everything. I remember EasyJet would actually charge for printing boarding passes at the airport!
#27
A FlyerTalk Posting Legend
Join Date: Jul 2002
Location: MCI
Programs: AA Gold 1MM, AS MVP, UA Silver, WN A-List, Marriott LT Titanium, HH Diamond
Posts: 52,574
If they are not true then:
a) Name me other LCCs that gives you free baggage and free carry on?
b) Name me other LCCs that charge comparable fares to legacy carriers on so many routes?
That's my point, people keep on calling SW a LCC but its like no other LCC I know off. The LCC and ULCC start of with a ridiculously low fare and then nickel and dime you for everything. I remember EasyJet would actually charge for printing boarding passes at the airport!
a) Name me other LCCs that gives you free baggage and free carry on?
b) Name me other LCCs that charge comparable fares to legacy carriers on so many routes?
That's my point, people keep on calling SW a LCC but its like no other LCC I know off. The LCC and ULCC start of with a ridiculously low fare and then nickel and dime you for everything. I remember EasyJet would actually charge for printing boarding passes at the airport!
One popular ULCC model was built around spamming the universe with 1-euro fare ads and then layering on the fees, but that isn't the only model and it isn't what makes a carrier a (U)LCC.
I've always thought of Southwest as the McDonalds of carriers. They have the most customers and generally make a lot of money (the most?) but few would say they are the best from a quality standpoint. Don't get me wrong - I've flown Southwest many times and will in the future. Just like I've eaten at the golden arches. I just don't set out to Southwest when I'm looking for the best the aviation industry has to offer. I also really like what their stock does in my IRA!
I agree with you except that they have eliminated the giant hubs. Over the last year, Southwest has become a hub-and-spoke airline. They eliminated tons of direct flights and routed those through hubs. DAL, HOU, MDW, DEN, PHX, ATL, BWI, BNA, pretty much every airport in Florida, etc. all serve as hubs. The difference is that they have more hubs than the legacy airlines and those hubs are in more desirable destinations (Florida, Phoenix, etc. as opposed to CLT, MSP) so connections are needed less often.
Contrast to UA, AA, and DL, where we *only* have service to the giant hubs with very, very few exceptions. If I want to fly AA out west, I have no choice but to spend half a day going through Dallas or Chicago. United is a little better...at least the hubs are in all four directions from here. That first flight to the hub is often a barbie jet.
In the past 2 years, starting with the MAX grounding, we've lost a couple destinations and gained a couple new ones. The only disappointing part for me is that we lost some *great* destinations - daily flights or more to PDX, SEA, BOS, etc. - and have mostly picked up cities I don't fly to. But I'm also willing to give it a year or two and see how things shake out once all of the aircraft are back in the air and MCI opens its new terminal.
#28
Join Date: Oct 2019
Location: PDX, OGG or between the two
Programs: AS 75K
Posts: 2,865
I would never rank them as the highest-quality carrier in the world, but they aren't attempting to be that. I will say they are the best at what they do - the short domestic flight in the U.S. Granted, their competition is usually quite awful on the quality front. It's not a high bar.
#29
Join Date: Jul 2009
Location: West Coast
Programs: WN A+, AS MVP, UA 1P
Posts: 92
#30
Join Date: Oct 2016
Posts: 3,705
We may be splitting hairs on what constitutes a giant hub. I'm not saying I never have a connection on WN - I certainly do to get to smaller cities on either coast. (And would for international or Hawaii.) Southwest has 10-15 "hubbish" cities, I suppose, but I consider that a strength. My airport (MCI) probably falls just outside what would be considered hubbish. Maybe 20th in the Southwest system in terms of total passengers?? So we get nonstops to most of those 10-15 top cities, plus some to other random places. That means when I do want to go off the beaten path - to one of WN's small outposts like SBA - chances are good I have a fairly straight shot connection to get there faster than dealing with a legacy.
Contrast to UA, AA, and DL, where we *only* have service to the giant hubs with very, very few exceptions. If I want to fly AA out west, I have no choice but to spend half a day going through Dallas or Chicago. United is a little better...at least the hubs are in all four directions from here. That first flight to the hub is often a barbie jet.
In the past 2 years, starting with the MAX grounding, we've lost a couple destinations and gained a couple new ones. The only disappointing part for me is that we lost some *great* destinations - daily flights or more to PDX, SEA, BOS, etc. - and have mostly picked up cities I don't fly to. But I'm also willing to give it a year or two and see how things shake out once all of the aircraft are back in the air and MCI opens its new terminal.
Contrast to UA, AA, and DL, where we *only* have service to the giant hubs with very, very few exceptions. If I want to fly AA out west, I have no choice but to spend half a day going through Dallas or Chicago. United is a little better...at least the hubs are in all four directions from here. That first flight to the hub is often a barbie jet.
In the past 2 years, starting with the MAX grounding, we've lost a couple destinations and gained a couple new ones. The only disappointing part for me is that we lost some *great* destinations - daily flights or more to PDX, SEA, BOS, etc. - and have mostly picked up cities I don't fly to. But I'm also willing to give it a year or two and see how things shake out once all of the aircraft are back in the air and MCI opens its new terminal.
Last edited by m907; Jun 18, 2021 at 7:16 pm