Society

Southwest-AirTran Merger Update: “It’s Complicated”

SouthwestNewLivery
Photo by Wikipedia user MamaGeek

From the title of this post, you may be inclined to think that it is going to be a serious discussion about business in America, but in fact it’s mostly a rant about my latest travel experience.  Nevertheless, I think you will find that my “on the ground” observations are at least as indicative of the progress of this merger between two “budget airlines” as anything you will find on the pages of the Wall Street Journal.  So strap in and secure your tray tables in the upright and locked position – it’s going to be a bumpy ride. (I have no idea what that last sentence was about, but it sounds pretty awesome.)

About half of the flights I take are from my current home base Washington, D.C. to my original home base in western Michigan.  It used to be that Delta had a nice direct flight from Reagan National Airport – located about a 10 minute drive from my apartment – to Grand Rapids, Michigan.  I’d leave about 7:30 pm and get in around 9:00 pm.  It was low stress and even slightly affordable.  Ah, those were the good old days.

Tragically, Delta and other airlines have made the unconscionable decision to make flights to Grand Rapids rarer and more expensive, forcing me to turn to Southwest and its sort of sister company AirTran.  The fares are cheaper (though not cheap), but part of the deal is that I have to be willing to travel to the Baltimore-Washington Airport, located about two-thirds of the way from D.C. to Baltimore.  This requires me to first travel into D.C. to Union Station – either by car or via Metro – where I get a train to the BWI airport station, then catch a shuttle bus to the airport itself.

During all of this extra traveling time, I am able to contemplate 1) how living in a big city doesn’t really make the trip to the airport much faster, and 2) the status of the merger between Southwest and AirTran, which has now been in the works for a couple of years.  But never mind all that thinking: I’m about to see first-hand just how well these two companies have integrated.

Upon arrival at the airport, I get off the shuttle bus and head for AirTran’s curbside check-in desk. (I am actually checking a bag this time, so I can’t just go straight to the security line.) In the past, I’ve found this is quicker than going and waiting in line inside the airport.  However, this time there is no one manning the curbside desk.  Drat!

All hope is not lost.  The Southwest curbside check-in is just down the sidewalk, and since the two companies have now integrated all their routes and flight numbers – I even bought my AirTran ticket through Southwest’s website – it shouldn’t be a problem for them to pull up my information at the Southwest desk.  I know this for a fact because I once stood in the Southwest curbside line rather accidentally and still got checked in.

This time I’m not so lucky.  The man at the counter tells me I have to go check-in inside.  Phooey!  Inside I go, only to find that whereas there used to be separate counters and lines for AirTran and Southwest, they are now completely integrated.  The two logos are even alternated on the wall behind the counter, and there is only one huge Disneyworld style line.  I find it odd that the computer systems inside are obviously integrated while those outside are supposedly not.

Fortunately, this does not seem to be a particularly busy period, so I get to the front of the line quickly.  As I am going to check a bag, I pay particular attention to a sign notifying me of the costs for checking one, two, or three items.  Despite the integrated line, the prices for the two carriers are different.  Southwest allows me to check my bag for free, whereas AirTran will charge me $25.  I guess the integration doesn’t extend to saving passengers money.

I place my bag on the scale and make sure to inform the employee behind the counter that despite going on an AirTran flight, I booked my ticket using Southwest’s website.  Perhaps this will be enough to get me a free checked bag?  The man hands me my ticket and doesn’t ask for a credit card, so I’m hoping this means I’m off the hook for the fee and it isn’t going to go on the card they have on file.

I make it to my gate where I see Southwest’s numbered posts.  For readers who aren’t familiar with Southwest, there are no reserved seats.  Instead, you are given a number on your ticket that corresponds to your place in line.  All passengers line up and board the plane in this order, meaning that if you have a low number you’re likely to find only middle seats open all the way to the back of the plane.  If you want to sit next to someone, you’ll have to beg, unless of course you paid the extra money required to get to the front of the boarding line.

I am no fan of this practice, but fortunately for me I won’t have to experience it this time, because AirTran has not yet adopted this particular Southwest policy.  You are still assigned a seat ahead of time, taking away the stress of having to get to your gate as early as possible and elbow your way to an aisle seat.  They even still allow you to pay far too much money for one of a few first-class seats, something that the egalitarian Southwest would never allow.

To add insult to injury, the direct AirTran flight doesn’t leave until after 9:00 p.m., which means I get into Grand Rapids rather late for the poor family members who have to come pick me up.  Worst of all, the Starbucks at Gerald R. Ford International Airport closes at about 8:00 p.m., which means I cannot be welcomed home with a grande hot chocolate.  Sad day!

Here ends my travel rant.  What have we learned about the status of the Southwest-AirTran merger?  To borrow a phrase from Mark Zuckerberg, I would say of this relationship, “It’s complicated.”

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3 Comments

  1. Your story is not necessarily new. Airport terminals and facilities are leased out to specific carriers. If that carrier disappears then those leases expire and the airport can negotiate for new leases. That’s why so many merged airlines keep individual names – block out competition from the airports and maintain costs by using the already existing lease rather than bidding for a new one. Thus both company names are kept for quite a while. Since both companies exist corporate executives get to keep their jobs and pay for a while. Generally the first people to go in a merger are the maintenance and administrative staff, followed by older equipment and doubly traveled routes. During that time those who have jobs are fighting for rank and position, not merging the airline. No one wants to spend money for the unforeseen issues to maintain shareholder value. If you calculated a mistake in how to merge the two companies that mistake exists until the profit meets expectations and allows for the write off of the work needed. Since each airline maintains its name they both have to be profitable and accountable to share holders – 25 dollars for baggage to offset seat allotment costs, etc.

    Higher grade carriers like united and delta reduced the number of flights offered to drive up traffic on profitable routes at the economic downturn in 2008. Air travel has been increasing since then, but the airlines are cautious. They see fuel prices as ~ 50% of their costs. Older aircraft are less efficient and higher maintenance so the goal has been to reduce routes, retire older aircraft, and fill seats on remaining more efficient routes. I see the impact a lot with my line of work and the amount of travel I do. I still pick the higher grade airlines though as I am outside of the US and Asian low cost airlines have very tiny seats.

    Low cost carriers can be a mixed bag of problems and generally cost as much by the time I get done picking what I want. I would never be happy with the southwest seating system. Being broad shouldered would make a window or middle seat uncomfortable for both me and the person next to me. I end up paying the extra to maintain the comfort.

  2. Firstly, in life you usually get what you pay for, which explains why the rich fly first class, and us middle class folks que up with the numbered ones. I don’t mind the inconvience to save the money, but I am Dutch.Secondly, you are worth the wait at GRR for any amount of time, even past my bedtime, and I am always happy to stop at Arbys drive through for you…sorry about Bucks being closed but I could purchase you one before they close and keep it warm for you at the airport until you arrive..just saying. :)

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