Monday, March 2, 2009

Wi-fi Airlines.


Not only is Southwest the industry leader for the airline industry on price, service, and destinations, but they have started to introduce a new service for their passengers.

Wireless internet is being tested on Southwest flights provided by a company called Row 44 that allows for passengers to surf the net on flights, and by testing, it shows that the service should be put into play as a chargeable service in the next few months.  This service is likely to be popular and with a charge of $10 or more per user depending on the length of the flight, this is a way for Southwest to earn more revenue without increasing ticket prices across the board or charging for bags that almost everyone takes.

Instead of charging for a universal service that was previously free (like other carriers with baggage), Southwest is introducing a new service to its customers and charging for an "extra" premium.  This will do well on the PR front and give them a better cushion in a down economy.

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