In its strategic transformation, Southwest Airlines has broken down taboos one by one. The American low-cost airline has recently changed its baggage policy as well as its seat allocation policy.
A new small revolution is on the horizon: Southwest CEO Bob Jordan indicated about ten days ago at the Bernstein Strategic Decisions Conference that the management was working on expanding the Southwest network with long-haul international flights. This will not happen immediately, but Bob Jordan estimates that this development will take place over the next five years, as part of a strategy to diversify its offering. But above all, it's to better meet the evolving expectations of the low-cost carrier's customers.
During the Bernstein conference, Bob Jordan explained that Southwest's international expansion was a logical step to allow customers to access more destinations without having to change airlines.
" We are likely to embark on long-haul international flights over the next five years ", he stated at the conference. " Nevertheless, we are not seeking to replicate the vast global networks of Delta Air Lines, United Airlines or American Airlines, but we can be very targeted by serving a limited number of destinations particularly favoured by our clients. "
A minimalist intercontinental network
Bob Jordan believes that such a strategy would enable the company to meet demand whilst maintaining its low-cost business model.
The leader stressed that the company wished to eliminate the reasons that lead some of its loyal customers to choose competitors for their international travel.
" Our clients love Southwest, but some destinations are simply not included in our current offering.he explained. We want to fill these gaps where it makes sense. "
Southwest would thus consider a targeted network of approximately eight to twelve long-haul destinations, which would precisely match passenger needs. Destinations such as London, Paris, Madrid, or Rome are being considered, among others, even though Southwest's CEO declined to name any specific destinations. On the other hand, the airline is contemplating offering its network from Baltimore/Washington airport, which is ideally located on the east coast as it serves both the federal capital, the economic zone of Baltimore, as well as Philadelphia, just a two-hour drive away.
Southwest does indeed have a strong presence in the Baltimore/Washington area. The airline holds a market share of over 70 per cent, making it a natural base for its international expansion.
The carrier would rely on growth in its fleet of Boeing 737MAX-8 aircraft and its new version, the Boeing 737MAX-7, aircraft with sufficient range to cross the Atlantic Ocean.
Southwest dessert plus de 120 destinations aux États-Unis mais aussi au Mexique, en Amérique centrale, dans les Caraïbes, à Hawaï et, plus récemment, en Alaska.
