
Southwest Airlines is getting rid of open seating
CNN
Southwest Airlines is shifting to assigned seats for the first time in its history, a change that will allow the low-fare carrier to charge a premium for some of the seats on its planes.
Southwest Airlines is shifting to assigned seats for the first time in its history, a change that will allow the low-fare carrier to charge a premium for some of the seats on its planes. The airline will also start offering overnight “red-eye” flights for the first time, which it said will improve the efficiency by increasing the use of its aircraft. Southwest said customers were clamoring for these changes – when people switch to a competitor from Southwest, the company said the No. 1 reason the unhappy passengers cite is open seating. But the change will also help the company charge some passengers more for their tickets. “The research is clear and indicates that 80% of Southwest customers, and 86% of potential customers, prefer an assigned seat,” said the airline in a statement. “By moving to an assigned seating model, Southwest expects to broaden its appeal and attract more flying from its current and future customers.” Southwest did not give details about when the changes will go into effect, but it said it would be discussed further in September. The airline had announced in April that it was looking at a change in its seating policy that has been in effect for its entire 50 year history. Southwest is under pressure from activist investors who have been pushing for changes in management and growth in profitability.

It was almost an extraordinary scene in front of the White House. As Tesla shares have been tanking since the year began, President Donald Trump held remarks outside of the White House with the company’s CEO and Department of Government Efficiency Head Elon Musk – all in front of a line of shiny Tesla vehicles.