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Airlines to charge more for aisle seat

Discussion in 'BBS Hangout' started by Faos, Mar 14, 2006.

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  1. Faos

    Faos Member

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    What a load of crap this is. Then they should also charge LESS if you get stuck in a middle seat.

    link

    Revenue-hungry airline to charge for aisle seats

    Tue Mar 14, 2006 3:28 PM ET

    By Kyle Peterson

    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>, 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> American Airlines and Delta Air Lines <DALRQ.PK> 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.

    Other airlines also have creative upgrade programs, such as UAL Corp's <UAUA.O> United Airlines, which in 2005 started allowing passengers to pay a fee to upgrade to unsold seats in a better section of the plane at the time of check in.

    "Most of our perks are still free," said UAL spokeswoman Robin Urbanski. "We still have free pillows, blankets and headsets."

    United expects its Economy Plus program to boost revenue by about $50 million in 2006.

    In the fourth quarter, American Airlines boosted revenue on top of regular ticket sales by 22 percent to $360 million. That included charging customers $25 for same-day flight changes.

    US Airways Group <LCC.N> has said it looks at opportunities to bring in extra money for services passengers value. The trick is to determine which services those are.

    "We don't have any immediate plans to charge new fees. But we think it's logical to charge for new services," said Scott Kirby, executive vice president, sales and marketing at US Air.

    American Eagle, a regional unit of American Airlines, said last week that it has given up trying to charge passengers for soft drinks because passengers were unwilling to pay for them.

    A next step -- one that may be controversial -- could be that airlines will start charging for bag checking, said Cheapseats' Trippler.

    Generally, airlines do not charge to check bags that weigh 50 pounds or less. Many charge for bags that weigh 51 pounds or more.

    The possibilities for special fees are almost limitless, Trippler said. Airlines just need to be creative.

    "This is all gravy," he said.
     
  2. SamFisher

    SamFisher Member

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    Good, I like the window anyway.
     
  3. thadeus

    thadeus Member

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    I like the window seat too, but I'm betting if they get away with this they'll up the price on the window seat next.

    The Airlines need to be nationalized.
     
  4. halfbreed

    halfbreed Member

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    Please, no. Imagine the people at the DMV running the airport.
     
  5. thadeus

    thadeus Member

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    Here's what the trick will be: They'll raise prices on the aisle and window seats, then it will look like the middle seat has actually become less expensive, even though it's the same price.

    I thought the government was already running the airports? Seems like it to me anway. If they're not nationalized, they need to be price-regulated.
     
  6. mrpaige

    mrpaige Member

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    And in a year, we'll see airline executives wondering why the aisle seats are all empty on their flights.

    If people are price sensitive enough to not allow airlines to charge higher prices all around, they're not likely to be willing to pay any more for the aisle seat when they book the flight.
     
  7. mateo

    mateo Member

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    I want a discount if I sit next to a fat person.
     
  8. Rocketman95

    Rocketman95 Hangout Boy

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    Southwest rules.
     
  9. Rocket River

    Rocket River Member

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    that maybe .. but it isn't like you License cost 300$

    Rocket River
     
  10. TheFreak

    TheFreak Member

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    I like the Curb Your Enthusiasm episode where David Schwimmer tells on Larry for not having his seat in the upright position.

    "Sir, let me tell you what I require."
     
  11. JuanValdez

    JuanValdez Member

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    What we need to do is stop subsidizing their asses and let them go bankrupt and disappear. Why should someone have to pay extra for an aisle seat because NWA can't run an efficient company? Leave the market to the companies that know what they're doing.
     
  12. Faos

    Faos Member

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    I wouldn't say it rules, but it's a lot better now that you can check in on-line and get the coveted "A" boarding pass before going to the airport. I can't stand waiting in those lines. It's always funny to watch the first person to stake their place in line, after that everyone feels compelled to follow suit.

    I once saw 2 women get into it because one had just put their luggage in line to save her space and was pissed with one of the boarding agents said she couldn't do that when it came time to board.
     
    #12 Faos, Mar 14, 2006
    Last edited: Mar 14, 2006
  13. Saint Louis

    Saint Louis Member

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    The secret is, only fly if you have too. The other secret, fly Southwest.
     
  14. mateo

    mateo Member

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    I prefer JetBlue.
    More legroom if you sit in the back, and TVs.
     
  15. wnes

    wnes Contributing Member

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    Geez, they just lowered the limit for check-in luggage weight from 70 lbs to 50 lbs on international flights not long ago. In other words, extra $25 for luggage weighed between 50-70 lbs.
     
  16. Manny Ramirez

    Manny Ramirez The Music Man

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    Amen.
     
  17. TL

    TL Member

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    Well, Northwest already is bankrupt. This is one of the many attempts they are making to increase revenues so that they can turn a profit. If consumers don't like it, they won't pay for it. If that happens they WILL probably dissappear. If that happens (along with probably oen more player) the airline industry will probably have the appropirate level of capacity. Right now, there are too many players and competition is killing the industry. Once a couple of these guys exit, the airlines can begin RAISING FARES. Which will then result in the exact same thing that you are complaining about.

    With the unionized cost structure, regulatory concerns and skyrocketing fuel prices, the airlines have a pretty crummy cost structure. They are vulnerable to any dips in the economy. The economy is strong now, but they still can't make money. That means 1.) they have to manage their costs better and 2.) they should probably raise prices. I can't remember the last time I was on a flight that was less than 85-90% full. And I don't usually fly during peak hours. Demand is strong. THis is the time to raise prices.
     
  18. Svpernaut

    Svpernaut Member

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    I heard they are no longer giving away Deez Nutz for free either :(
     
  19. Svpernaut

    Svpernaut Member

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    Can't wait until JetBlue hits Houston.
     
  20. Dr of Dunk

    Dr of Dunk Clutch Crew

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    That's cool... I always want the window seat anyway. :D
     

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