UAL - Southwest Airlines' Free Bag Policy Under Pressure After Elliott's $1.9B Stake | Benzinga
Southwest Airlines Co. (NYSE:LUV) faces pivotal decisions regarding its distinctive “bags fly free” policy as Elliott Investment Management, having recently acquired a $1.9 billion stake, advocates for strategic changes.
The said policy allows passengers to check two bags free of charge, a unique offer among U.S. airlines.
The debate on whether to introduce fees for checked bags is intensifying, especially as the airline contemplates other modifications to its business model, such as assigned seating or premium services, reported Bloomberg.
On Monday, Elliott sent a letter to Southwest’s Board of Directors criticizing the company’s outdated strategies.
While other carriers have embraced additional revenue streams like baggage fees, ...