Monday, January 23, 2012

Southwest packs more seats onto planes

By Jane Levere, msnbc.com contributor

Southwest Airlines unveiled a new, eco-friendly plane cabin for certain models of its 737 and 717 aircraft that it hopes will generate additional revenue.?

Among the low-cost carrier's planned changes (called "Evolve"):

  • lighter, low-profile seats that use the frame of previous seats and are covered by a fabric more durable than traditional leather;
  • more under-seat space for carry-on luggage and pet carriers;
  • reduced seat recline from three inches to two inches, which Southwest says ?preserves onboard personal living space while still allowing for ample seat adjustment?;
  • recyclable carpet, installed in squares, which allows for easy, inexpensive replacement.

Bob Jordan, Southwest?s executive vice president and chief commercial officer, said the new cabin would be installed, starting in March, on its fleet of 737-700s, as well as the 737-700 and 717 aircraft of AirTran, which Southwest purchased in 2010.

He said the installation process on Southwest?s aircraft???which will cost an estimated $60 million ??should be complete by mid-2013; he also said the weight savings generated by the new, lighter seating could save Southwest $10 million in fuel costs annually.

The new cabin design and seating configuration will allow Southwest to add six seats to each aircraft, a capacity expansion Jordan said has the potential to generate an additional $250 million in revenue annually. He also said the reconfigured aircraft would be deployed on routes with ?excess demand,? such as longer-haul routes into and out of Las Vegas.

?Southwest is actually degrading the customer experience while cloaking it in an environmental message," said Henry Harteveldt, co-founder of Atmosphere Research Group and a travel industry analyst.?"There?s a lot of mixed news: They?re reducing the weight of the plane and carbon dioxide emissions and increasing fuel efficiency, but they?re packing six more people on each aircraft who will fight for overhead bin space, with less legroom and less seat recline.?

The increase in capacity will put pressure on ?Southwest to fill seats and add promotional fares. I?m concerned about its ability to generate profit, especially if demand is uneven,? he said.

Jordan said he was ?not worried about demand as it relates to seats.?

Harteveldt also said there was nothing ?revolutionary? about Southwest?s measures, since in recent years other American and European airlines have installed lightweight seats on their aircraft, and, in some cases, removed aircraft galleys to reduce weight and thus fuel burn.

He called Southwest?s initiatives an ?offensive play" and said "by adding seats and offering more capacity, they may carry more customers, which could lead to an increase in market share.? ?

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Source: http://travelkit.msnbc.msn.com/_news/2012/01/20/10199101-southwest-evolves-with-lighter-load-tighter-space

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