The fate of Southwest Airlines’ popular “bags fly free” policy is likely to be among the most contentious issues to be broached as activist firm Elliott Investment Management pushes for changes after taking a $1.9b stake in the carrier. Southwest is alone among US carriers in letting passengers check two bags at no cost, giving up the potential for millions in revenue in exchange for a service that sets it apart from rivals. While the carrier recently opened the door to evaluating other changes to its long-held business model, like assigned seating or some sort of premium product, it’s remained steadfast that bag fees aren’t part of the review. Elliott appears to have a different view, noting in a website presentation that Southwest has “written off” revenue opportunities implemented across the industry over the past 15 years, including assigned seating, premium products, a bare bones basic economy fare and checked bag fees. Carriers globally collected $33.3 billion in baggage fees last year, up nearly 15% from 2023, according to an annual study by IdeaWorks and CarTrawler. But rushing to change too much at Southwest, the US carrier that has held most tightly to its culture and quirky differences, could turn away long-time loyal customers. Such a change could be “traumatic” to Southwest’s customers, culture and employees, said Jay Sorensen, president of IdeaWorks. “It is a stunning distinction because no one else is doing this,” he said in an interview. “How many times do you get that opportunity in life as a marketer? This is something that is to be preserved, perhaps at all costs.” <br/>
unaligned
The union representing mechanics at WestJet says members voted overwhelmingly to reject a tentative agreement with the airline. The Aircraft Mechanics Fraternal Association, which represents some 670 aircraft maintenance engineers and other skilled trade positions at the carrier, says about 97 per cent of its members cast a ballot against the deal. WestJet says the result does not affect operations, but company president Diederik Pen called the result "deeply concerning." Pen says the deal would have made employees the best paid airplane mechanics in the country after "challenging" negotiations toward their first collective agreement. The union has cited wages, outsourcing, scheduling and layoff protection as central issues in the bargaining process. The two sides reached a tentative deal on May 6, two days after WestJet issued a 72-hour lockout notice to mechanics following their announcement of a strike vote.<br/>
Cebu Pacific, operated by listed Cebu Air, Inc. (CEB), has received its turboprop aircraft, marking its sixth aircraft delivery for the year. “This aircraft delivery brings our turboprop fleet to 15, and we will be receiving our sixteenth ATR turboprop in October,” Cebu Pacific Chief Executive Officer Michael B. Szücs said in a media release on Tuesday. “With this, CEB will be operating the largest turboprop fleet in the Philippines, enabling us to serve more passengers across the country,” he added. A turboprop is an aircraft powered by a gas turbine engine that drives a propeller, offering high fuel efficiency and reliability for short-haul and regional flights. For the year, Cebu Pacific is expecting to receive 17 aircraft, which would help boost the company’s operations, it said. The ATR 72-600 arrived at the Ninoy Aquino International Airport on June 5, the budget carrier said, adding that this new aircraft will strengthen the company’s inter-island travel. The ATR 72-600 aircraft can carry around 78 passengers. It is said to be used by many airlines as a regional aircraft because it can access short, narrow, and unpaved runways, Cebu Pacific said. Cebu Pacific said the ATR 72-600 is one of the latest generations of twin-engine turboprops produced by the Italian aircraft manufacturer Avions de Transport Régional (ATR). <br/>