Why This Latest Change at Southwest Airlines Is A Positive One

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Southwest Airlines is spending hundreds of millions of dollars upgrading its tech infrastructure to ensure a more seamless and on-time experience for you, the passenger.

Southwest Airlines

Here’s more information from The Dallas Morning News on the changes: 

“The centerpiece of this three-year, $250 million effort is a new reservations system that Southwest will begin implementing this year, beginning with ticket sales. Operations will move to the platform in the first half of 2017, followed by additional enhancements later that year. The passenger service system, which is being built by Amadeus IT Holding SA, will offer Southwest, the biggest U.S. player by domestic passengers, the same sort of scheduling techniques its rivals have been using for years.

“After 30 years, we’re going to have an up-to-date reservation system that will have much more robust capabilities for us to more tactically contemplate making changes to our business model,” Chief Executive Officer Gary Kelly said on June 23 at the company’s annual investor day.”

Bottom Line:

The tech upgrades are likely to make red-eye flights more likely in major cities such as Chicago, Atlanta and Baltimore.

Plus, the new technology will enable Southwest to alter its frequency of daily flights based on demand. Say fewer flights on Tuesday and Wednesday when fewer people are traveling.

The tech upgrades are expected to add $500 million to its annual income over the next four years.

Southwest also doesn’t charge for checked bags, something that its rivals like United Airlines and Delta Air Lines charge for.

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  1. But will this new system ALLOW SWA to start charging for bags? The old system couldn’t handle that.

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