More layoffs are coming to Southwest Airlines. For the first time in company history, Southwest Airlines let go of 1,700 non-union employees at its headquarters. Employees were banned from corporate headquarters and firings took place online.
Now, in addition to major business changes like selling seat assignments and charging for checked bags, in a piece of the reduction of force not previously reported the airline is going to be outsourcing its skycap service. Currently 10 airports have Southwest employees assisting with curbside baggage. This ends in mid-May.
Dallas Love Field skycap employees and employees in Austin are talking about receiving their notice, and no doubt elsewhere. Reader Ellen shares her sad interaction with an employee on Monday evening: “One young lady said her father…got fired too…She said they will hire 3rd party staffers so they don’t have to pay benefits! some of these employees have been with southwest for a decade.”
According to a Southwest spokesperson,
From now through mid-May, we’ll continue to have 10 Southwest Employee-operated Skycaps in service. After that, all Skycaps will be vendor operated. The gap between notification and separation allows us to work on securing vendor service prior to mid-May and allows affected Employees the opportunity to apply with the vendor. Of the 52 Skycaps we currently operate, those 10 are the only locations not contractor serviced.
The airline is giving up its customer-focused and efficiency advantages over competitors, making itself more like those competitors with fees for everything while (1) offering an inferior product [no first class, no lounges, no seat back screens, no standard power outlets, lack of high speed wifi] and (2) without a fleet or route network that can compete for customers, which also means a frequent flyer program that doesn’t offer customers the breadth that attracts high co-brand spend.
In other words, they’re making themselves just like everyone else – but with a less attractive product and less ability to move passengers where they need to go.
So they need to find cost cuts. Headquarters layoffs seemed silly because they already had a hiring freeze, and in 12-18 months would have accomplished the same headcount reductions without resorting to creating a culture of fear at the company. I have heard from many working at the airline who wonder when the next round will come.
The airline clarifies that – though layoffs had been framed by the company as happening at headquarters rather than effecting the front-line – letting go of sky caps was part of the 1,700 total layoffs rather than in addition to it.
American Airlines outsourced curbside check-in at the few airports that still offer the service and now charges $3 – $4 per bag.
The lower-paid third party employees tend to be less helpful, and tell me that the per-bag fee trades off with tips (since customers are already paying for the service). That’s another path Southwest could take to generate ancillary fees in the future.
Asked whether charging for curbside check-in, like American Airlines does, is in Southwest’s plans their spokesperson said, “We can’t disclose any potential ancillary pricing, but we don’t currently charge at those 42 of 52 skycaps that are vendor operated.”
Elliot strikes again, don’t expect this to be the last cost cutting measure they do, everyone should be on guard.
I’ve never seen a free Skycap. Here are the fees at Toronto’s Pearson airport:
$25.00 for pre-arranged online booking, including a personalized sign with your name
Fixed rate of $20.00 for up to three check-in items
Additional bag rate: $3.00 per bag
Additional charge of $10.00 per pet cage or for any other equipment
Transfer fee of $10.00 to Carpark, Sheraton Gateway, ALT Hotel, or another terminal
I suspect that LUV will create hubs and eventually look like jetBlue. Small communities will lose service and the BIG 3 will benefit (likely AA the most). In 2-3 years, they will be in bankruptcy and re-organized into a LCC once again. Today, they are inefficient, expensive and the service isn’t what it was. Herb. . .sorry you have to watch this from above. . .what a joke your airlines as become.
Skycaps clear $100k a year tax free while hardworking untipped schoolteachers make $50k. That’s not an equilibrium in economic terms so it was either canning the skycaps or paying teachers more and we all know what happens when we try to pay teachers more: it doesn’t happen.
Hear me out: “Uber for luggage.”
Well I wrote the customer comments section of SW a condolence letter on the death of what was once a great corporate culture. Don’t expect a reply, but at least somebody saw that people care, and are sorry for what they are going through.
Nothing like damaging the brand by terminating long time curbside employees (who interact directly with your premium customers). Watch the customer engagement and satisfaction scores for SWA continue to drop.
These are typically Business or premium flyers…those willing to pay the fee and/or tip generously in return for efficiency. Another competitive advantage gone.
Southwest has what remaining competitive advantages and distinguishing features to keep it from having a stall and a nosedive? There used to be some routes where the airline had enough frequency to make it very useful for business travelers/commuters, but those routes/frequencies are no longer what they used to be and that market is also thinner than it used to be.
Maybe Southwest can make the same wild adventures as JetBlue and try routes to Europe too? Won’t fly, at least not in time for an FT Do with a cast of characters in October in Europe if Canada doesn’t fly.
What does nsx think of Southwest Europe service? I don’t think it will fly, at least not well for Southwest. But where will Southwest go from here? Go for a combination or partnership with JetBlue?
Southwest still has Skycaps? My goodness.
United got rid of those 35-odd years ago. They got low wages, but were the only employees permitted to accept tips, so they could make a good living, plus they got health care and pension benefits.
But UA was paying those benefit costs up against the PeopleExpress’s of the world who had no skycaps. People that wanted curbside bag check had to use independent skycaps hired by the airport.
So Southwest is not entering the 21st Century. They’re just catching up to the late 20th.
No bag fees AND skycaps? And supposedly a “low cost airline”?
again, how many other airlines eliminated these jobs a long time ago?
While WN is cutting another leg out of ITS model, other airlines have done the same thing and that process is now done at a charge or is outsourced
‘1,700’ people on a ‘whim’ sure is a lot people and their families who will be negatively impacted by these changes–this is what happens when you don’t have worker protections (non-union).
As Elliott continues to end everything different and good about this airline, never forget, it was all for their short term profits and the ‘golden parachutes’ for the top executives.
We should probably, maybe, like, sorta, perhaps…elect better folks who actually care about their constituents, the workers and consumers–not just ‘quick’ money from special interests.
I am very disappointed in Southwest Airlines’ new Baggage fee. I used to like Southwest, but not so much anymore.
Done, done and done. Have been a loyal SWA for 40+ years. Nope. Other airlines offer the same routes, also charging for all check bags. As far as assigned seating – there are issues. SWA doesn’t offer 1st class seating. It offers no airport lounges for customers, where competitors will exceed customers expectations. Cutting SkyCap services adds to the attractiveness of SWA competitors.
Terrible decisions include corporate layoffs, which could have been done through attrition. Finally, has the new SWA CEO making cuts to his salary, perks and staff? The fast answer? No. More for him and less for the other employees. It’s a shame. Probably close out my SWA credit card. Points are drastically reduced on purchases. And, talk of charging all customers for bags, then refunding SWA card holders is shady.
Bye, bye, bye.
Vaya con Dios.
I am very disappointed in Southwest Airlines’ new Baggage fee. I used to like Southwest, but not so much anymore. Free baggage is the best policy they have .
How to kill an airline 101.
I started in 1991. We made our bones on customer service at the highest level. Triple crown winners every time. Most on time, least lost bags, highest customer ratings.we would do whatever it took. But alas they became like everyone else. What a shame
A charge just to use a skycap and then be charged a separate fee for a applicable bag check is outrageous and maybe even more offensive than being charged a fee just to print a boarding pass @ the airport (a la Ryanair ) …..
Southwest just effectively made it easier to fly United. As someone who flies both airlines, Southwest’s changes have made United the clear winner on price for same routes and ticket level. SMH. Forget about all the other things Southwest lacks as mentioned in the article. Not even a choice anymore. United it is.
All of this news AND to make sure remaining Employees got the picture that all LUV was lost for them; they will no longer be recognizing those that go above and beyond in their jobs. Internal recognition programs have been cut. No military appreciation, no winning spirit, no rewards from direct Leaders and much more are gone. Guarantee you that profit sharing is next.
Where do you get that crap that the 1,750 HQ layoffs could have been accomplished by attrition in “12 to 18 months”? It’s BS, and you keep repeating it to make Southwest’s actions sound even more callous than they actually were. But then again, that’s Gary Leff’s MO.
Do you really think Southwest’s HQ had a 15% employee turnover rate per year? Seriously?
Those cuts included 11 Vice Presidents and Senior Vice Presidents, and entire offices and departments were eliminated as unnecessary moving forward. Are you really pretending that THAT would have happened organically in 12-18 months? Do you think all corporate employees are somehow fungible? If you believe any of this, then you have no business writing articles on anything, especially an airline
I would have made the same decision. Time to cut.
This is going to backfire on Southwest; not the skycaps, but turning this airline into just another basic carrier. Recently flew Delta/Aeromexico to CDMX and it had me wishing Southwest flew to Mexico City. Not only is Aeromexico’s staff incompetent, the whole partnership they have with Delta has each company pawning you off to one another claiming the other has to assist you. My ticket was Delta, my colleague’s ticket was Aeromexico, but we are on the same flight; an Aeromexico plane. When something goes wrong, having competent empowered people that can assist makes the difference. I’ll never fly Aeromexico again. Maybe I’ll try Southwest into Cancun or another city and then a regional carrier to CDMX. My A List status gives me one free bag.
Why would SW kill itself. You are removing the very customer benefits that made you attractive to us. You were different and we liked you that way. It’s always the wrong choice made by some overpaid idiot that will destroy something beautiful. Good bye my airline.
@Faafoi Tuitama, Southwest has not willingly made these decisions. They have been forced upon them by a Predator, an Activist in search of money to make its Investors happy. They do not care about people, they do not really care about Southwest Airlines, only how much money they can squeeze out of it. Their track record says it all with the Companies they have destroyed.
Today they cut jobs in BWI, SJC, LAX and BUR. They reduced Customer Service Agent positions in BWI, Ramp Agent positions in LAX and BUR and both Ramp and Provisioning in SJC. All this taking effect June 1st. This company is heading for the tank, they no longer hold an advantage over anyone…it’s the beginning of the end.