Don't give them any ideas...
Posted on 03/14/2006 2:04:00 PM PST by MikeA
By CHICAGO (Reuters) - Struggling U.S. airlines, looking for new ways to generate revenue, are getting bolder about charging for pretty much anything that makes air travel a little more comfortable -- including aisle seats.
First came charging passengers for in-flight meals. Then, reservations done by phone cost extra. And now, one major airline, Northwest Airlines Corp. (NWACQ.PK: Quote, Profile, Research), is trying to charge passengers for the right to sit in aisle seats and emergency-exit rows.
The day is coming when carriers will require special fees even to check a bag, experts say.
Analysts told Reuters that travelers should brace for more nickel and diming as airlines seek to recoup losses from soaring fuel costs and competitive pressures. Airlines are likely to test passengers' willingness to pay for an ever wider array of services.
"We're just scratching the surface. I think 2006 is going to bring a tremendous amount of changes," said Terry Trippler, an analyst with travel Web site Cheapseats.com.
"I think it's going to be the difference between a black bottom line and a red one," he said.
Bankrupt Northwest this week unveiled a program called Coach Choice in which the carrier will save some preferred coach seating on the aisle or emergency-exit rows until check-in. Passengers can pay $15 per flight to sit in those seats, which may offer more room.
Airlines has been weakened by rising fuel prices and low-fare competition that keeps ticket prices low. In recent years, carriers have been trying to cut costs by eliminating expendable services and perks. AMR Corp's (AMR.N: Quote, Profile, Research) American Airlines and Delta Air Lines (DALRQ.PK: Quote, Profile, Research) last year eliminated pillows on domestic flights.
"It's certainly a trend. I expect to see more of it," said Morningstar equity analyst Chris Lozier. "I had never even considered the possibility of charging for aisle seats. It's definitely being taken to extremes at this point."
Lozier said airlines must be careful when implementing programs like Northwest's. Carriers run the risk of alienating customers if they charge for services or seats that do not have special fees attached at other airlines.
Most carriers have cut meal service on shorter flights in the coach section. Many have begun charging for food, drinks and entertainment that used to be free. Continued ...
© Reuters 2006. All Rights Reserved.
Northwest deserves to go out of business. When my wife and I were looking for good fares for a vacation, NW even on the Internet travel bargain sites, was almost 3 times the cost of other carriers to the same destination. I could almost have flown the Concorde to Europe for what NW was offering for the same trip in a cattle car with wings.
Heck, how much just to stand strapped to a bulkhead? That's probably what's next.
Ah, airline customer care. Why don't they just make most seats 6 inches wide and charge extra for the 8 inch seats? Or charge extra for clean air on long distance flights? Airplane travel is so exquisitely annoying these days that I drive from the Bay Area down to LA, Las Vegas, or San Diego just to avoid the aggravation.
This is why I avoid flying the Dinosaur Airlines as much as possible. Meanwhile, other airlines are finding success by going the opposite route, i.e. eliminating first class and making the coach class seats just a bit more spacious and comfortable.
How many deep? And will they want premium pricing for the more desirable locations?
If the airlines want to treat us all like we are bus passengers in Bolivia, they should not expect us to pay a fare higher than a Bolivian bus co. charges - 150 worthless pesos or whatever currency they use down there.
Quote: "Neither Southwest nor JetBlue are full network carriers. They cherrypick flying the most profitable routes, and generally avoid flying to small cities or more congested airports. You can't fly Southwest from New York City (Islip is too far out for most of us) or Fargo. And you can't fly JetBlue from JFK to the more congested San Francisco or LAX."
No, but you can fly JetBlue from JFK to Oakland or San Jose, not really a big diff there. Starting in June you can fly JetBlue from Newark to the same places. Yes, JetBlue cherry picks, but it does it in a very clever way.
Just another ludicrous reason why I don't fly. Don't want to deal with the crap at the airport and now this crap. If I cannot drive there, then I ain't going.
Big mistake, lots of issues to be figured out.
If flight is half full and someone moves into an aisle seat, do you charge them? What if the person across from you paid more? Do they get a discount back?
Lots of NW employees are laughing about how lame this is on the airline employee boards.
Not to mention that some other airline is going to have a field day with them.
BTW, if you want to see what its like when one airline makes fun of another, go here: http://www.psa-history.org/awa/video/index.html and click on the Mosh Pit ad, its a great dig at Southwest.
"And will they want premium pricing for the more desirable locations?"
You mean like those where you'd have 3 hot, busty, blondes strapped in front of you?
Jet Blue is in trouble these days, losing money and too many planes coming in that they have nowhere to put.
Expect them to defer deliveries soon. The legacy carriers have cut back their expenses like crazy, and most of them are on track to do quite well this year, at the expense of Jet Blue and Southwest.
Don't give them any ideas...
"Cherry picking" profitable routes would seem to be the only selection process that makes any sense for an airline. What business does any airline have in flying unprofitable routess, since profits for the owners are the only justifications for their existence?
Southwest makes money because they have their fuel hedged better than anyone else, without the hedge they are losing money. And their hedge will be over soon, and they know it, which is why they just raised all their fares this week. Jet Blue ain't making money. Air Tran is much better run than Jet Blue.
LOL, I loved your tag about "Wear are the Cats?" That thread was pretty funny. I can't believe how long it lasted. Was it ever ZOTed?
JetBlue mis-calculated on Fuel Costs. They do have places to put the bigger planes. A real problem for them is that they abandoned (to a small extent) their original business model of flying one, and only one, plane. They are adding a smaller jet. This will cost them and was a dumb move. Unlike the dino airlines, JetBlue's problems are not being caused by a lack of customers. Regardless, I would fly them over the dinosaurs anyday.
Not with my inseam :) But I've had it with the airlines. I'll just drive.
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