Airline cutbacks and fees: how can they still be losing money?

Posted by jack on January 6th, 2009
  • Are the Airlines worse than the banks?

    Fees introduced by the Airlines:
    $100 change fees
    $10 security fee instead of Airline paying for security
    Fuel surcharges
    $100 standby fees
    "Expedite" fees for less than 2/3 week Awards tickets booking
    Paper ticket surcharges
    Charge for lounge access (Europeans receive free access w/domestic Business class ticket or preferred status)
    Charge for drinks in coach/economy international flights
    Charge for larger or heavier baggage
    Charge for more than 2 bags check-in
    Charge for headsets during flight
    Increase charges for upgrades
    Outrageous fees for use of in-flight phone. (No use of cellular phone in air.)

    Other cost savings:
    Cut thousands of jobs
    new non-upgradable fares
    Increase number of miles needed for free tickets
    Capacity controls
    Cut travel agency commissions
    Cannot carry on more than 1 bag plus personal item
    Meals cut from most flights
    Closing of CTOs


  • Well, since few people want to pay for any of the real costs of providing service, what else are the airlines to do? Europeans pay higher fares, still get meals inflight on short haul flights and access to business class lounges. And no "free" elite upgrades: you pay C and you sit in C, you pay anything else and you sit in the back. Americans pay low fares, and everything else becomes an add-on. Its called a la carte flying: the more you pay, the more services are included. That's the new order...







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