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Southwest Business Select's initial buzz: BS

By STEVE HUETTEL, Road Life
Published November 14, 2007

Southwest Airlines has an enviable reputation for making smart business decisions. How else do you explain 66 consecutive profitable quarters in an industry with more ups and downs than an elevator operator on a pogo stick?

But last week's announcement of the premium "Business Select" ticket class makes me wonder if something got in the water down there in Dallas.

The idea behind the new deal, quickly shortened to BS on Web chat boards, is that business travelers will pay $10 to $30 above Southwest's highest one-way fares for a few perks. They include a free drink, bonus Rapid Rewards frequent flier credits and - by far the biggest goodie - a place at the head of the line to board the plane.

Southwest doesn't assign seats. So, nabbing a pass for the "A" boarding group is usually the only way to make sure you get an aisle or window seat. Executives also unveiled a program called the A-List for customers who fly 16 round trips or 32 one-way flights a year. They will also receive preferred boarding.

I can already hear free-market purists gagging on their honey-roasted peanuts. What's wrong rewarding customers who use the product more often or agreed to pay more for it? Isn't that how all the other major airlines and other corporations do business?

Maybe that's my problem with this BS. From Day 1, Southwest zigged when everyone else zagged and stuck by its guns. Here are three reasons why Business Select might not work:

Keep It Simple: This principle has been a key to Southwest's success. They use one type of plane, fly from Point A to Point B instead of through hub airports, and won't go outside the United States. It used to be that people who wanted the first shot at an exit row or aisle seat could go online 24 hours before departure and grab an A pass. Now, Business Select customers go first, followed by A-Listers, then everyone else. What if a bunch of through passengers are staying on board? There's not a simple or predictable way for regular customers to get a good seat anymore.

We're All in This Together: Part of Southwest's charm was that with everybody flying coach, nobody got special privileges. I've never resented the folks sipping Bloody Marys in lounge chairs as I walked through first class to my seat with US Airways or American. I doubt I'll feel as charitable toward the "Pay for A" guy riding in the same cabin on my first Southwest trip in a middle seat. I don't think it's just me who feels like that.

Where's the Beef? Many business travelers refused to fly Southwest because the airline didn't assign seats. Now they're going to switch for the chance to compete with a dozen fellow travelers for the front aisle or exit row seat they want? Forget about other perks that network airlines offer frequent fliers: first-class upgrades, airport clubs and free tickets to Europe. Business Select isn't a great value for most Southwest frequent fliers, either. If you make 16 round trips a year and qualify for the A-List, you already line up right behind the BSers. Are the free drink and modest Rapid Rewards bonus enough to persuade you to part with even $10 extra?

To be fair, Southwest is in a pickle.

The airline isn't hitting revenue goals, while it's facing rising fuel prices, higher labor expenses and leaner competitors who narrowed Southwest's cost advantage by slashing costs in bankruptcy. Analysts are pushing management to raise more "ancillary revenue" - money from sources other than regular fares.

Fair enough. But is BS worth the cost of ticking off us regular Joes in the back of the line?

Steve Huettel can be reached at huettel@sptimes.com or (813) 226-3384.

[Last modified November 13, 2007, 22:36:24]