Southwest Airlines is considering introducing long-haul international routes, as well as premium lounges. The company said these moves will allow it to better compete against rival US carriers and to boost the value of its Rapid Rewards loyalty programme.
Speaking at Morgan Stanley's 13th Annual Laguna Conference, Southwest CEO and president Bob Jordan said the company was “at the very beginning” of examining premium lounges and international routes.
“We know our customers love us… but if you want a lounge, you want premium, you want extra legroom, you want to fly to London — whatever the list is — and we can't provide it, you are going to pick another carrier,” he said. "So, we're going to force you to split your wallet. We're going to force you to carry another carrier's co-brand card, simply because we can't serve you. That's the gap we're closing.
“If we're going to continue to drive relevance, even as the largest domestic carrier, we've got to continue to meet the needs of customers.”
Southwest has added airline partnerships such as with Icelandair, China Airlines, and EVA. Jordan said there are “many in the pipeline right now” as a way to get customers “to the world served by somebody else”. He said that, at some point, Southwest would like to serve those destinations as well.
Jordan said lounges would not only support customer demand, but also drive customers taking up its premium cards. “It's a huge potential additive to the Rapid Rewards programme," he said.
Southwest recently launched its vacation package service ‘Getaways by Southwest’, available in over 30 of Southwest's market.