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.
Not until they let the campesinos ride on the wing.
Continental seems to be able to make it happen. And they sucked just as bad as the rest of them 20 years ago.
Your perception of Dino airlines is outdated. Continental, American and UsAirways have been doing great lately and have cut their costs down to the levels of the low cost airlines.
In fact, the USAirways merger is going so well, that a profit is forecast for this year, and they are staving Southwest off at Philadelphia. The larger airlines also are doing well off international flights, expect to see lots more Europe flights with smaller planes like 757's. Plus, Hawaii has taken off lately, lots of airlines are making profits flying there with 757's. Southwest can't do that, and they are missing out on revenue.
Virgin is a wonderful airline, love them! Flew them several times from LA. You will enjoy it.
"That's what buses are for."
LOL! Or personal vehicles, rent cars, thumbs, bicycles, inline skates and jogging shoes.
How much for a barf bag?
Wouldn't there have to be a premium for front strapping aas opposed to back strapping? But then, some would pay more for the back strap! Gaaack! What to do, it's so overwhelming.
I like continental... its a good airline, good service, comfortable...
"But then what happens when the window and middle seats are full? Then you're screwed."
This is where I see consumers filing equal protection (treatment) lawsuits. I only want aisle when I have a short connection to make - I'd rather have window and not be bothered by people climbing over me otherwise.
Front strapping, or regular?
Their logo should be: "Virgin is pregnant with profit"
Some "amenity".
Welcome to the wonderful world of premium load pricing. I liked it better before deregulation . . . .
I read that Continental was going to cut routes. Delta certainly isn't doing well, nor is Northwest.
Ok, now putting aside the balance sheet, my perception of the dino airlines is based on my flying experience, or reality. Their healthy balance sheet has come at the expense of winning my or my companies, business. Crappy service is crappy service and nothing can change that. The last dino I will fly is Continental because I have to. Ok, they got the point of flying smaller, more efficient planes long distance. It is a shame that they didn't get the full point. I am crammed in the smaller planes because they have still not figured out to take first class out, add more seats overall, but increase leg room.
I would pay extra for three or four inches more width in the seat. (not my seat, the airplane seat)
http://inflationdata.com/Inflation/images/charts/Oil/Historical_Oil_Prices_Chart.htm
Just don't eat before your flight. They won't feed you enough to barf your shirt pocked full.
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