Airlines getting "cheaper"

By Research Desk
about 11 years ago

The aviation industry is looking at innovative ways and means to charge the customer for everything and anything. If we have started paying for the preferred seats here, in USA people are already paying for check-in baggage and more.

In USA, airlines had started charging for the preferred much before we Indians had caught on. Now we hear that low cost airline, Spirit is charging even for the use of the overhead storage bins! United Airlines reported a 13% jump in third quarter profits and it stated this charging of extra for tidbits, known as upsell, was the main growth driver! Alaska Airlines also reported record profits and this week, raised the fees for checking a bag to $25, in line with other major carriers, and for changing a ticket to $125. This is a bargain if one looks at the other airlines who charge $200. Southwest is the only airlines which does not charge for checking bags or change in itinerary, making that its unique selling point. Majority of the airlines earn money, more than the ticket costs sometimes, on upsell revenue like seating assignments and onboard sales of food, beverages, pillows, blankets and entertainment. Airlines have now introduced what they call – upgraded economy-class dining, offering high quality meals. This, many feel will become a major revenue grosser in the months to come.

What are they going to think of next? Money for the use of restroom in the plane? Now this is what we call getting really cheap...

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