Posts Tagged ‘airlines’

Airlines Busy Inventing New Perks for Spendy Travelers

Sunday, March 13th, 2011


(photo credit: Richard Moross)

Don’t worry; you don’t have to pay to use the lavatory. Yet.

  • It seems like the airline industry has been struggling financially forever. But it’s never been as obvious as it is today, when most carriers are charging $30 for an extra carry-on bag and eliminating complimentary meals.
  • The main source of these fees is the steady increase in fuel prices airlines have seen in recent years. But with every new charge comes with a new disgruntled customer.
  • Now, instead of taking away amenities that used to be included in the price of a ticket, airlines are coming up with new services to sell to travelers. More of an “added value” approach than a cost-cutting spree.
  • Flyers willing to shell out can board the plane early, get a seat with extra legroom, or splurge on a champagne brunch – yes, even in coach.

Facts & Figures

  • Airlines increased their prices six times in the first two months of 2011
  • Fees for things like extra carry-on bags and snacks accounted for 5% of all industry revenue in 2010 – that’s $22 billion

>> What do you think?

Grounded Jets, Space Jets(!), and Misleading Celebrity Tweeters… TILE Two-Liners 1.10.11 >> 1.14.11

Monday, January 10th, 2011

MONDAY

  • “Cupcake leader” Crumbs (a chain of bakery shops) was just sold for $66 million, proving that the American epidemic of childhood obesity *can* be profitable. (The Wall Street Journal)

TUESDAY

  • Radiohead just keeps on flipping the music industry script. They’re allowing a group of fans to sell a bootleg concert DVD made up of clips secretly shot by 14 different audience members. The catch? All profits have to go to Oxfam. The concert was, after all, a benefit for Haiti. (BBC News)

WEDNESDAY

  • Someday, someone will literally fly you to the moon and let you play among the stars. For a price, of course. (BBC News)

THURDSAY

  • Don’t believe everything your favorite celebrities tweet: They may be on an ad agency’s payroll. (Bloomberg)

FRIDAY

  • If you thought this winter’s snowstorms were annoying for your family, think about the airline industry, which lost over $100 million because of cancelled flights. (The Wall Street Journal)

Air Travelers Pump Up The Crankiness

Thursday, October 7th, 2010

See? Someone is listening.

  • The Department of Transportation received 8,797 complaints about airlines from consumers this year. That’s 32% more than last year.
  • This sharp increase in complaints is strange, since airline performance doesn’t seem to have decreased since last year. Planes are taking off more or less on time and keeping customers in their seats. This year’s complaint levels are at about the same level as in 2008. Airline service improved in 2009, resulting in fewer complaints.
  • The DOT explains that this year’s spike may be a side effect of an easier online complaint tool. Airlines blame bad weather. Customers blame the airlines. They say that when problems do arise, customer service is bad at best and hostile at worst.

Facts & Figures

  • Delta was the target of the most DOT complaints this year.
  • Complaints about airlines’ failure to provide alternate transportation have increased 82% this year.
  • “Misinformation” complaints have jumped 70%.

Best Quote

“This was so egregiously outrageous.” – Patti Sachs, burned United Airlines customer

Air Traffic Rebounds In May

Wednesday, June 30th, 2010

After chaos in April when Eyjafjallajökull’s spewed volcanic ash all over northern Europe, air traffic increased in May.

  • Airlines remain focused on recovering from 2009.
  • The airline industry lost about $2 billion when passenger planes were grounded because of the eruption.
  • Because of recent economic turmoil, Europe has shown weak airline industry growth.

Facts and Figures

  • International passenger air traffic increased +12% in May.
  • Airlines expect a $2.5 billion profit in 2010 – a huge turnaround from the $9.9 billion loss in 2009.
  • Air freight increased +34% in May, up from 26%.

Best Quote

“This is good news, but it is only a 0.5% margin. We are still a long way from sustainable profitability.” – Giovanni Bisignani, Director General of the International Transport Association