Southwest Stock Falls: Has the Once-Loved Airline Lost Its Edge?
Historically, Southwest Airlines (NYSE: LUV) has been one of the most successful airlines in the history of the industry. Unlike most of its major rivals, the company has never gone through bankruptcy proceedings, working its way through the most difficult of circumstances to stand out from its peers.
One thing that has worked in Southwest's favor is its scrappy attitude and commitment to customer service. The company has shied away from trends that major carriers like Delta Air Lines (NYSE: DAL), American Airlines Holdings (NASDAQ: AAL), and United Airlines Holdings (NASDAQ: UAL) have followed, with Southwest choosing not to impose checked baggage fees on all customer luggage and maintaining its open-seating policy. Those customer-friendly moves have kept Southwest shareholders happy, even when they've meant potentially leaving some money on the table for the airline stock.
Now, however, Southwest is facing a massive customer service challenge. With federal regulators coming into the picture, Southwest will need to work hard to demonstrate to its customers and its shareholders that it hasn't lost the competitive edge that has served it so well throughout its 55-year history.
Source Fool.com
