Buh-bye, bag fees? What the Southwest-AirTran merger really means for passengers


This morning’s big news — some observers have even called it “shocking” — is that discount carriers Southwest Airlines and AirTran Airways are headed to the altar in a $1.4 billion merger.

I’ve already received numerous questions about what this will mean for passengers. The answer? It’s a good news/bad news situation, probably.

But let’s begin with a short video (above) from earlier this year, when Southwest took aim at AirTran for its baggage fees. This was part of a series of commercials in which Southwest tweaked its bride-to-be. Funny, how things change. They must have known back then that a merger was a possibility. And yet …

Here’s what we know: According to a news release, AirTran is going to be absorbed into Southwest. Here’s what it would mean, specifically:

1. Bag fees

Southwest doesn’t charge a bag fee for the first or second checked bag; AirTran charges $20 for the first checked bag, $25 for the second and $50 for additional bags. Southwest intends to do away with the AirTran bag fees.

2. Change fees

Southwest doesn’t charge change fees. AirTran charges a $75 for any changes made after purchase. These fees, too, are being eliminated.

3. Assigned seats

Southwest does not assign seats. AirTran does offer seat assignments, including business class and coach. Southwest says assigned seats will be phased out.

4. Dual class service

Southwest offers one class of service. AirTran offers business class and coach. Not anymore. After the merger, it’ll be a one-class configuration.

What do you think? A quick poll of more than 200 readers found a majority (about 80 percent) thought the merger would be good for air travelers.

Before I tell you what I think of the deal, let’s listen to what some others are saying about it.

Over at the Atlantic, Daniel Indiviglio makes a good point: Ticket prices will probably take off if this merger is consummated.

What’s good news for Southwest is probably bad news for consumers. This isn’t the first big news of major airline mergers recently. Earlier this month, shareholders approved the merger of Continental and United, forming the world’s largest airline.

The Southwest-AirTran union is bad for consumers for the same reason as Continental-United. It will likely result in higher ticket prices.

Consumer advocate Clark Howard has a different view. He can’t see a “down” side to the merger.

I am just ecstatic. It’s like my birthday and my wedding day, the whole thing at once. This is really big. Southwest is the most important player in the airline industry and Atlanta is the biggest airport operation in the country.

The Consumerist’s take on the issue was a little bit snarkier:

Overweight people wearing rude tshirts or skimpy clothes will soon have fewer flying options, now that Southwest Airlines is buying AirTran.

Spirit is expected to respond by merging with an ICBM manufacturer to develop flights that will just jam all the passengers in a tube and rocket them across the country.

Very funny.

So what’s the bottom line for passengers? We just don’t know. Both airlines have relatively good reputations for customer service and low fares, but I believe fewer choices always results in higher prices. Point given to the Atlantic.

I also understand Howard’s position. Atlanta could sure use a little Southwest love.

But I don’t see how this merger, if it happens, will result in any seismic shift in the way people fly. So I’m staying away from the hyperbole on this story.

My biggest concern here is that AirTran’s corporate culture (which never was shy about charging customers fees) will find its way into Southwest’s business. That would make the commercial I showed at the top of this post very ironic, indeed.

We’ll have to see what happens.

  • SirWired

    Hmmm… this is intriguing. The only wrinkle is that it will introduce a second type in the fleet, the 717. This is definitely treading new ground for them, as they have been a pure 737 operation for decades. Fortunately for Southwest, there is no shortage of pilots for the things, and the DC-9/MD-80/90-derived design is rock-solid reliable. The downside is that their fuel efficiency sucks.

    I wonder if WN will dump the 717′s and pick up a whole pile of 737s off the leasing market to replace them?

  • Linda

    Well, that is one less airline that American has to compete with out of DFW. They pretty much have a lock on the entire place now, watch the fares go up up and away!

  • Sarah

    I’m not going to lie, I liked having the assigned seats on AirTran and snagging a last minute, discounted upgrade at check-in was a beautiful thing. Sometimes it’s nice to show up at the gate knowing which seat you’re going to have (I HATE aisle seats) without queuing up for a seat and being herded on board. Southwest is great but I don’t want every budget airline to be Southwest.

  • Eric

    Eventually, we’ll end up with maybe three airlines and it will cost $1000 to fly from NY to Orlando.

  • Karen

    As a loyal AirTran customer and an Elite member for several years, based out of Atlanta, this is terrible news for me and other business travelers. Not only have I earned my upgrades, most of the time, I’ve payed for them. I am not looking forward to having to fly Delta in order to receive a business class experience.

  • Eileen

    I fly SW almost exclusively. Things like the no bag fee, that I don’t have to fly into terrible LGA when I go to visit family in New York (all hail ISP airport! Best kept secret in New York), and none of the “I am so fancy, I need a special seat) business you get at other airlines. You can change your reservation anytime without being gouged, and usually (though not always), the employee you deal with is pretty nice. And the fares are usually pretty decent.

    I am a bit worried as to what this will do to the cost of my ticket, as less competition usually is a price raiser. BUT, honestly, if they otherwise keep their corporate culture and customer service where it is, I will happily sign off on this marriage. Mazel Tov!

  • Michael

    I am very excited to see Southwest’s city options expand, especially with International opening up as a strong possibility within the next two years. Unfortunately it does appear that Southwest is forgetting to serve the…southwest – we’re seeing fewer flights out here in the Desert! Don’t leave us (and the uncongested, good-weather airports) behind!

  • Jeffcarp

    Anyone care to speculate what will happen to the AirTran markets that are served through agreement by SkyWest (i.e., Des Moines, IA)? Will they suddenly become Southwest markets? Or will the AirTran / Skywest agreement simply vanish as a result of this merger?

  • frostysnowman

    Very interesting. The new head of the Atlanta airport has been pointedly asked about getting Southwest into Atlanta and I guess this is the answer. I know some who will be upset about the loss of business class, but I know I will not miss anyof AirTran’s fees. I fly AirTran only in case of emergency (too many fees!) and never SW because they have not been in Atlanta. But if SW keeps all of AirTran’s routes I can assume I’ll be flying SW in the future.

  • Steve

    I think as long as this doesn’t change Southwest’s business culture, it won’t be a huge deal overall (though it may drive up fares in some markets). @SirWired, I also wonder what Southwest is going to do about the 717s. My guess would be that they’ll get rid of them and continue to operate only 737s; I can’t see any big advantages to keeping the 717s (since the 717 holds 117 passengers in a one-class arrangement and SW’s 737s hold between 122-137). It would seem like if SW was going to take the huge step of adding another type, it would be a plane that’s significantly smaller or larger than the 737.

    The thing that turned me off to AirTran was the fact that they charged for *any* seat reservation. IMHO, assigned seating with a fee for a reservation is the worst of both worlds. I know some people hate SW’s open seating, but I find it easy to check in early and get a good enough spot in line to get a desirable seat.

    I couldn’t care less about the loss of business class – I neither fly often enough to become an elite FF, nor have the money to spend on an upgrade, plus domestic business class really isn’t much to get excited about.

  • dave

    What happens to the four free tickets that Air Tran gave to me/my family for skipping a recent flight? Will Southwest honor them? We have yet to book those free tickets. Thoughts?

  • Jack

    Bad labor relations, between the Air Tran flight attendants and Southwest, could wind-up killing an image Southwest has worked, for decades, to build up. Nasty flight attendants, who are forced to work without a contract, or who’s job future constantly has a question mark after it, can give an airline a black eye. Just ask American or US Airways! Ideally, Southwest should insist on having a representation vote, for Air Tran flight attendants and other represented workers, BEFORE the merger becomes final.

  • Joe Farrell

    Southwest will now have 3 aircraft types – hmmm. They have only had 737′s for years – which means will their pilot lists merge or will they be in a position to maintain separate seniority lists based on aircraft type? This COMPLETELY changes their business model. . . .

    Will I get cash for my AAI shares? Or will I get southwest stock? Not sure I really want either -

  • Doug

    @ Dave, presumably you wouldn’t lose them. First, as we see with Continental/United (and with Delta/Northwest before), airline mergers take a long time. It’ll still be a while before AirTran is down and out. And, when a company buys another, they buy the assets and the debt–your free flights are AirTran’s debt.

    @ Steve, not so sure about dumping the 717s. Smaller aircraft=serve smaller markets more profitably. With Southwest already talking about pulling in larger 737s anyway (which would require different pilot training and four flight attendants instead of three), they’re already going down the path to (slightly) more operational complexity.

  • Brian

    The fees that AirTran charges are not as bad compared to the majors; except for the seat assignment fee and a few other “evil” fees. For example, most of the majors charge not only the difference between the fare purchased and new fare for changing the itinerary, but also the an additional $ 150. AirTran also charges the bag fee to check-in luggage like almost all carriers do. I don’t know how AirTran frequent flyers will get along with Southwest since Southwest uses a fixed number of credits per segment; not number of miles/segments flown.

    Still, I think Southwest knows how to take care of their customers better than the majors and Spirit who insist on screwing the passenger on everything to make a profit.

    @ piechart: It’s Packman without the eye.

  • Sarah Di

    This might be my chance to be able to use Southwest!

  • sweepergrl

    I love the possibility of having Southwest at an airport within 2 hours of me, not 5 hours like it is now. That being said, AirTran, as a general rule, flies into smaller airports/cities than Southwest. If SW pulls out of the smaller airports, that leaves our local airports with few options. All I can hope is that they stick with AirTran’s airports/ regional contracts because if they don’t I’ll be stuck with either United or American.

  • Ed

    If nothing else, it may bring Southwest to Dulles Airport! I’ve never flown Southwest because I only fly out of Dulles!

  • David

    @Karen – I share your disappointment. I have been an AirTran Elite since 2006 when I gave Delta the boot, but this deal is a slap in the face to us who have given AirTran our (and our company’s) business for years. No business class, no assigned seats… Maybe Delta will match our Elite status for a year and win us back!

  • N

    Ed – Southwest does (and has for awhile) fly out of Dulles.

  • Jennifer

    Definitely a mixed bag. I’m in ATL, so in terms of pricing, this is definitely a good thing (and keep in mind that ATL is where Clark Howard is based too – he dedicated an entire hour of his show today to discuss the merger/buyout). However, I just got Airtran Elite status, and was really looking forward to my free upgrades and things, and now I won’t recieve them for an extended period of time, so that kind of bites. I always flew both DL and Airtran depending on who had the better fare, now assuming DL will continue to match fares as they have done with Airtran, I’d probably go back to DL more full time because I travel frequently and like my perks. I think this is what’s going to separate the business, at least in ATL….those who travel for work, etc want their perks and will pay $20-$60 more on a fare to get them, whereas the common leisure client will probably opt to save a buck or two. So while I don’t think it will have a positive affect on fares in all markets, it should for certain in Atlanta.

  • Joe

    When Southwest eliminates business class seating, I’ll no longer fly them. I don’t really want a free seat but I’m 6 feet 4 inches tall and I want to sit in one that doesn’t result in me being crippled after a 5 hour flight. I gave Airtran virtually all my business when they had an available seat on a route I needed to take. Delta lost my all of my business during the Leo Mullin days. I hope Delta take the opportunity to win back some business class passengers.

  • Amy

    I know the economy has put a tremendous crunch on people, but there still are some of us out here that have money and aren’t always looking for a “discount”. I’m not saying that I don’t want to get value for my spend, but I’ve also progressed in life to the point where I don’t want to ride in the back of the party plane to save $200. Delta lost all of my business bc there was never an opportunity for upgrades unless all the “million milers” got stuck in the Crown Room and missed the flight. AirTran filled that space nicely with their Business Class offering that was very affordable. The only hope that we have now is for the Board of Directors to vote this down (unlikely) or for JetBlue to come to Atlanta asap!

  • Kami

    As long as they keep AirTran’s regional service, it has the possibility of being a huge service to the Gulf Coast area! Southwests unaccompanied minor polices and lack of baggage fees could be a real plus….keeping our fingers crossed!

  • Michael

    To me, it’s sort of beginning to sound like Southwest may become the Ryanair of the U.S. Thank you, I don’t want that.

  • Chicky

    I’m a little concerned about what this will mean for HSV, my local airport. It is currently served by AirTran, while Southwest serves BNA to the north and BHM to the south, both within about a 90-120 minute drive.
    Huntsville has worked really hard to upgrade its facilities and to attract more airlines and routes, and if they lost an airline because WN flies so close in two other cities, it would be a shame.
    However, keeping WN routes in HSV would probably increase traffic through that airport, since people from, say NW Alabama and eastern Mississippi, who don’t have a WN served airport close by, and for whom BHM and BNA, as well as Jackson, Miss. are quite a drive, would probably be tickled to have a choice in HSV. WN also does not serve Memphis, so there’s a corner of TN/AL/MS that would be better served by driving to HSV to fly.
    Here’s hoping everything works out.

  • Steve

    @Doug: “@ Steve, not so sure about dumping the 717s. Smaller aircraft=serve smaller markets more profitably. With Southwest already talking about pulling in larger 737s anyway (which would require different pilot training and four flight attendants instead of three), they’re already going down the path to (slightly) more operational complexity.”

    True. But the 717 isn’t all that much smaller than the 737-500s Southwest currently operates, and from my understanding it’s more of a fuel hog than the 737 which would also help mitigate any savings. So on that front I don’t see a big benefit. Of course, from a financial standpoint there are lots of other factors too (I’m not sure if AirTran leases the 717s or owns them outright), and in any case they’ll probably need to keep the 717s around for a while.

    Also, I agree that the potential of adding larger 737s already adds complexity, but I think from a training standpoint adding a new model of 737 is less complex than adding an entirely different aircraft like the 717.

    @Michael: “To me, it’s sort of beginning to sound like Southwest may become the Ryanair of the U.S. Thank you, I don’t want that.” I don’t see any reason to believe that based on this acquisition. So far, all indications have been that Southwest is going to keep their current business model and integrate the AirTran fleet into that model (no fees for the first two checked bags, etc). That could change, of course.

  • Plat flyer

    This will only drive up fares as less competition will do, at least in certain markets. As for the West, fares from SLC – JFK are still cheapest on DL non-stop. SWA is usually slightly more expensive plus add a stop (PHX, LAS, BWI) to get to NY. So unless you’re willing to queue up constantly for seats and change planes in your trip then SWA doesn’t make much sense.

  • Mike

    This merger will essentially ruin my life, I am a very frequent business traveler out of Atlanta usually 3-4 times per week all on Airtran and usually in business class. Having a career that dictates that amount of travel is a very hard life, the only consolation is the upgrades on Airtran. Everybody keeps talking about baggage fees all they have to do is travel a little get elite status and then you dont pay for them, the same holds true for change fees on Airtran you can fly standby the same day and there is no change fee. So what other grand options does Southwest offer?????? Also I am a Southwest fan and had hoped someday they came to Atlanta to compliment Airtran not eliminate them. So with one less discount airline rates WILL go up….. time to find a new career and get out of traveling

  • Jason

    I work in sales and live in Atlanta and fly Airtran 2-4 times a month. I have been extremely satisfied with AirTran operations and in particular the Elite program. As an Elite member I’ve been able to get a free upgrade to business class 40 minutes prior to departure I’d say around 75% of the time. The XM radio on all flights is great too. Very few delays, only 1 delay for ‘mechanical’ in probably 100 flights. My biggest gripe with Airtran is that they often don’t display a correct departure gate for ATL flights.
    The Elite program is simply awesome. It’s a simple and straightforward program and it works great.

    To hear that AirTran is “removing” business class from their airplanes?? Are you kidding me? And no assigned seats? Ha….goodbye! My business is all east of the mississppi river and Airtran has excellent coverage in this area…which incidentally is where 2/3 of the population lives. This merger may be great for AirTran’s vision but for an AirTran Elite customer based in Atlanta, IT SUCKS!!!!!

  • KC

    I’m surprised to see all the love for AirTran here. I’ve flown them once and thought they had very uncomfortable seats with no leg room, and fees for everything. Southwest seats have fairly generous leg room, more than any other domestic carrier I fly regularly and I like that I don’t have to pay extra to get it. And no silly fees. I can almost understand bag fees, but I will never understand flight change fees when I make the changes myself on the website way in advance of the flight. I hope this merger brings positive change to the whole industry.

  • Adam

    I’m a frequent business traveler, and have been loyal to Airtran because they offer plenty of flights and great fares to Atlanta. I’ve achieved Elite status and now enjoy the business class upgrade and other perks this program offers. Southwest offers me nothing. If they do in fact remove business class from the airtran fleet, I’m off to delta for good. I’m sure the others elites will do the same.

  • John

    wherever Southwest flies, fares are cheaper across the board. So even if you don’t like flying Southwest, their expansion means lower prices for travelers.

  • Chuck

    I guess we can separate the “peasants” from the “Bourgeoisie” on this issue. (sorry i just HAD to say this).