Friday, September 5, 2008
Southwest Starts Business-class Perks for Higher Fares
Low-fare bigshot Southwest Airlines is making some big changes. In a move to attract the more lucrative class of business travelers, Southwest is putting a higher fare structure in place today, offering perks for passengers willing to pay more. Southwest said its new "business select" fare will offer the ability to board first, additional credits for frequent fliers and a cocktail on the house. The airline said it expects to make at least $100 million a year more with the change. "We are simply offering business travelers new reasons for choosing Southwest Airlines," said Gary Kelly, chief executive officer. The higher fares will be $10 to $30 more expensive than existing fares, he said. About 10 percent of the available seats will be business select. CreditSights analyst Roger King said Wednesday the new structure won't cost the airline much but can help Southwest's bottom line.


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