Southwest tjener godt på 0,- i bagasjegebyr

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Southwest CE: Free bags = $80m
(Source : TheStreet, December 09, 2009)


Southwest says its strategy of eschewing fees for baggage handling and other amenities has boosted revenues by nearly US$80m annually. Southwest has seen a market share shift of roughly one percentage point in response to its 'immensely successful 'bags fly free' advertising campaign, in a time when we are actually reducing our capacity and the domestic market is actually shrinking,' CE Gary Kelly. With the domestic air travel market worth about $80b to $90b annually, 'a market share shift like that has a very significant positive effect for Southwest,' Kelly said. A spokeswoman noted the carrier's market share gains result not only from the bags fly free campaign, but also from being a low-fare carrier in a recession and from competitors' capacity reductions. Not charging for bags reinforces Southwest's image as a low-fare leader, Kelly has said.