Southwest Airlines is surveying a new elite program and gutting the Companion Pass.
At this point Southwest really has only two things going for it – employees who don’t hate their jobs (although most of the Southwest employees I talk to are really frustrated and unhappy with the changes taking place at the ariline) and the Companion Pass.
A Rapid Rewards member earning a Companion Pass can bring another traveler with them free (for just the cost of taxes) whether they’re buying a paid ticket or redeeming points. And that’s available whenever there’s an open seat on the plane.
- There’s really not other reason to spend on a Southwest Airlines credit card – since the card’s initial bonus and points earned from spend count towards earning a Companion Pass, but otherwise you’re better off with a card whose points transfer to Southwest or other airlines and hotels. You’ll earn points faster and those points will be more valuable.
Indeed, with the Sapphire Reserve card’s upgrade announced this month you can even earn Southwest status with spending on that card.
- And it’s the only thing that sets Southwest apart. Their frequent flyer program was recently devalued, and doesn’t offer the reach of other programs – it can’t yet take you to Europe and doesn’t offer premium cabin redemptions or upgrades. Indeed, Southwest itself lacks first class, seat back entertainment screens, standard outlets for seat power, airport lounges and has the industry’s worst inflight wifi. Their plans lack ovens in the galley so they can’t even offer real meals if they start Europe flights.
So naturally, the airline that’s given up its core value proposition – its advantage over competitors – by adding checked bag fees, imposing expiration dates on travel credits, and basic economy restrictions on their cheapest fares would look to squeeze out the last outsized value that they offer
As they work to mimic the worst feature of financial laggards American Airlines and JetBlue, Southwest Airlines is surveying:
- A new four or five tier elite status program
- And Companion Pass that would only be available to that new top tier (with limited companion pass trips at the level below). Currently Companion Pass can be earned with credit card initial bonuses and spending, no status with the airline required.
Here’s discussion of the survey on Facebook,
So I took a survey, husband A-List Preferred. Our 6 th year with companion pass and it seems they want to change up the tiers of rewards to 5 levels and only give the highest level the ability to have Companion seat picked at booking. They are so going to start making us pay for every little thing.
And here’s discussion on Reddit,
Southwest survey on loyalty levels for next year. Seems likely a big CP nerf incoming. They’re looking at a 4 tier program, with only the top tier earning CP, if that. Top tier qualifying points requirements ranging from 100-160k or 30-50 round trips. Companion pass options are either nonexistent, 4 one way certs or full CP. No CP on the lower 3 tiers at all in the survey. They seem to be entertaining a option to keep the seat next to you open, with various numbers of certs. Any seat, 3 bags, 2 drinks, priority lane at top level. Various iterations down to almost nothing at a low level that bottoms out at 10k. No indication if card sign up bonuses count for qualifying points or not.
Southwest needs to stop. Just stop. They desperately need an intervention. Unfortunately, Elliott Management succeeded in gaining effective control of the board of directors despite a minority stake in the carrier. They pointed out real problems at the airline – a slow moving culture, overhiring, and customers who moved away from their core domestic coach product – but lacked real solutions.
Essentially Elliott sought to have the airline mortgage their balance sheet to fund stock buybacks (which they’re doing), but in the process appointed directors with an industry status quo bias. And CEO Bob Jordan appears to just be going along in order to keep his job.
(HT: Danny Deal Guru)
Using the last of my SW points.. and I am DONE. I live 5 miles ,from Love Field.. I’ll fly Delta instead. With the new fares, SW is now the same price as AA. See ya!
If there are no reasons to fly Southwest other than convenience of schedule, they will not be enough reasons to fly them.
The venture capitalists will have destroyed another unique institution and left a shell of a company and abandoned its employees.
If they take away companion pass, there will be no reason for me to spend money on this S.W. Cc. They don’t offer club privileges. The seats are small and I have top status on other airlines that let me upgrade the first class. This airline is going to bury itself within 12 months.
Stock buybacks were considered stock manipulation until that grinning dope Reagan and his handlers changed things in 1982. This, and whole host of other problems related to opening the doors to greed, is what you get when such people get their fingers into the economy. My father, 1900-1990 spent half a century on Wall Street, saw this and other sleazy things going on at the time, and said, “Doesn’t anybody remember the Depression?” To which my mother said, “No, they’re all dead!” And so people are relearning why strong controls are needed to stop such antics.
@Paul:
I don’t disagree with you on WN being wrecked, but I take a bit of umbrage with this being blamed on “venture capitalists”. Hedge funds, sure, but WN isn’t a startup where the initial investors are looking to bail – VX’s sale to AS was an example of /that/.
Anyone surprised? That’s what happens when you are taken over by a hedge fund or in this case your larges shareholder is a hedge fund. Wait until. They get ahold of your 401k’s.
RIP LUV
Unfortunately Southwest has small cramped seats,no power chargers, non working wifi no lounges baggage fees upcoming seat fees etc
There is nothing left of the once decent ok company and they are now nothing more than a cockroach in sea of others waiting to be crushed and stepped on.
I’ve moved thousands of dollars worth of bookings elsewhere short term
I will fly Spirit before Southwest at least they have first class seats now and their cheap and comes with free checked baggage.For long haul the legacy carriers all the way
Why on earth would anyone fly Southwest?
Unless they previously booked or using up old credits
Farewell old friend you came in handy every now and then and offered value
What do they offer anyone now as a flying overpriced bus
My usual SW travel has been a couple of trips to Vegas and 3 trips to NYC, all solo on points or travel funds. CC will get me a checked bag. I still have points and travel funds to burn, so they will keep me looking to SW for a while.
But no more CC travel credits going there.
As Rodney Dangerfield asked Sally Kellerman in “Back to School”, why don’t you call me when you “have no class?”
This sums up the situation at Southwest. And Bob Jordan still doesn’t know who his lifetime SWA multi-million-miler fliers are (zero recognition or lifetime benefits).
This airline will be a business case within 5-10 years on “how to nuke your business and alienate your customers in less than a year.”
Refresh my recollection, what remains that made Southwest unique and consumer friendly, other than maybe a few point-to-point routes that others don’t cover these days. With open seating, two free checked bags, easy cancellation for credits, and now this (Companion Pass) potentially gone, I’d say that’s the whole ballgame. Oh, but they may fly to Iceland from BWI. WORTH IT!
Gary:
Just wondering when you are going to stop dumping on us here at Southwest. You’re not helping the 100,000 plus employees dedicated to our airline. We get it. You don’t like us l but please stop helping to bury us further than we already are.
@Michael you can blame feckless Bob Jordan for that Gary is just saying the quiet part out loud. You’ve been betrayed. First by Gary who refused to invest in technology and made the Xmas meltdown inevitable and now Bob who enjoys getting pegged by Elliott. You as employees aren’t the problem. You are victims just like all of us
I know there is a cottage industry in questioning WN’s moves and predicting its death but they provided investor guidance that its revenue initiatives including the things above (minus the companion cert which has not been announced) are worth about $1.5 billion in additional revenue in 2025 and another billion on top of that next year. They affirmed that guidance just a couple months ago even while saying that domestic demand is weaker than expected.
Maybe, just maybe, Elliott did the analysis to recognize that WN’s business model doesn’t work and can succeed better with a legacy lite model which is where they are going to now= and maybe beyond in the future.
The quarter ends Monday which means we will hear from everyone in the industry in a couple weeks.