HolyCoast: Passengers as Freight - the Next Wave in Airline Pricing
Follow RickMoore on Twitter

Tuesday, June 03, 2008

Passengers as Freight - the Next Wave in Airline Pricing

If you thought the end of in-flight meals and snacks, along with charges for checked luggage, was the end of the line for airline pricing changes, think again:
June 3 (Bloomberg) -- Imagine two scales at the airline ticket counter, one for your bags and one for you. The price of a ticket depends upon the weight of both.

That may not be so far-fetched.

``You listen to the airline CEOs, and nothing is beyond their imagination,'' said David Castelveter, a spokesman for the Air Transport Association, a Washington, D.C.-based trade group. ``They have already begun to think exotically. Nothing is not under the microscope.'' He declined to discuss what any individual airline might be contemplating, including charging passengers based on weight.

With fuel costs almost tripling since 2000, now accounting for as much as 40 percent of operating expenses at some carriers, according to the ATA, airlines are cutting costs and raising revenue in ways that once were unthinkable. U.S. Airways Group Inc. has eliminated snacks. Delta Air Lines Inc. is charging $25 for telephone reservations. AMR Corp.'s American Airlines last month became the first U.S. company to charge $15 for one checked bag.

Even a cold drink may be harder to come by aloft.
How long do you think airline check-in lines are going to be when this comes to pass?

No comments: