Money buys a better position. Just look at Southwest’s new seating.

It was only a matter of time. Southwest Airlines, which set itself apart from its nickel-and-dime competitors, will soon scrap its open-seat policy and charge folks for more legroom.

It’s a momentous change that, in some respects, speaks to a metaphor I’ve written about before — airline seating is much like America’s economic divide — the less room you have to be comfortable, the more likely you’ll get stuck in a miserable middle position.

For those not familiar with the carrier’s long-standing seating policy, passengers are not assigned a seat. It’s first-come, first-served, making it an outlier among the major carriers.

For five decades, Southwest’s system was a good example of how equitable treatment can work — for the most part.

I’m a frequent Southwest customer, and its boarding stood out because price-conscious passengers were essentially treated the same. Of course, the coveted bulkhead and exit aisle seats are quickly snapped up, but almost all other seats are the same size.

Everyone can check up to two bags free. With a boarding number, there’s no need to crowd the boarding gate to compete to be among the first to board.

On Southwest, there is just a little bit of privilege.

“Business Select” passengers don’t get special seating at the front of the aircraft. They get priority boarding (after those needing assistance). Then there is “EarlyBird Check-In.” For a fee, these customers are automatically checked in, which also has the benefit of an earlier boarding position, which increases their odds of snagging a preferred seat and coveted overhead bin space.

But during the boarding process, you don’t have to walk past first-class — or business-class — fliers in their enviably wide seats, as they sip drinks delivered to them on a tray while you slog to your cramped quarters, hoping there is still overhead space for your carry-on bag.

On Southwest, there are no curtains physically and psychologically separating the haves from the have-nots.

Under its new policy, Southwest expects roughly one-third of the seats across its fleet to come with extended legroom. The new seating configuration is expected to be available in 2025.

Southwest said its research found that many customers strongly prefer a premium seating option.

“Although our unique open seating model has been a part of Southwest Airlines since our inception, our thoughtful and extensive research makes it clear this is the right choice — at the right time — for our Customers, our People, and our Shareholders,” Bob Jordan, Southwest’s president and chief executive, said in a statement.

I don’t doubt that many folks will want to pay for the comfort. More wealth has always allowed people to buy a better position in life and on airlines.

“Wealth inequality is higher in the United States than in almost any other developed country and has risen for much of the past 60 years,” according to an April report by the Urban Institute.

In 1963, the wealthiest families had 36 times the wealth of middle-class families. By 2022, it had jumped to 71 times that of families in the middle. Those richer than 99 percent of all families saw their wealth increase more than sevenfold — from $1.8 million to $13.6 million.

The economic inequity for minorities is worse, the result of “long-standing effects of racist policies, not individual intentions or deficits,” the report points out.

In 2022, the average wealth of White families was $1.4 million. That compares with $211,596 and $227,544 for Black and Hispanic families, respectively.

“In a nation that professes that those who work hard and play by the rules should be rewarded with social and economic upward mobility, these persistent disparities are a stark reminder that, as a society, we have not achieved this goal,” the report said.

Southwest’s move is also indicative of shareholder expectations.

Solid returns are not enough because companies have to feed the beast that is Wall Street.

Even with recent market turbulence, investors are doing well overall. The Dow Jones Industrial Average, S&P 500 and Nasdaq all hit record highs in July.

But such demands come with a cost: For companies to deliver bigger earnings quarter after quarter, year over year, there invariably is an erosion in affordability for many consumers.

Like legroom and seat widths on many airlines, the middle class is shrinking. A larger percentage of Americans cannot afford a college education, a home or an automobile.

A report earlier this year from the Pew Research Center found that the share of adults in the middle class dropped from 61 percent in 1971 to 51 percent in 2023.

Pew reported that the median income of middle-class households increased from about $66,400 in 1970 to $106,100 in 2022. During this period, the median income of upper-income households increased from about $144,100 to $256,900.

You may argue that it’s only fair that people with means buy the upgrades they want. But we can’t ignore what economic inequity does to a society.

Folks fight over what’s left.

Continuing with the airline example, passengers are battling over bin space. Tensions flare when people recline their seats, making it more uncomfortable for the passengers behind them.

A more equitable airline cabin could make flying less stressful and more comfortable for everyone. Closing the wealth gap creates a better world. The rich can still have their luxuries, but lower- and middle-income families can enjoy a better life, as well.

During an earnings call, Southwest’s chief executive said there are no plans for the company to add a first-class section or eliminate its policy that bags fly free.

Jordan said the airline won’t be putting in seats that have doors or ones that give you a massage. There won’t be ovens to prepare hot, plated meals for privileged passengers.

There also won’t be curtains.

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Source Link: https://www.washingtonpost.com/business/2024/07/26/southwest-seating-money-buys-better-position/

Money buys a better position. Just look at Southwest’s new seating.:

It was only a matter of time. Southwest Airlines, which set itself apart from its nickel-and-dime co…

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