Editorial from Tucson
Business
Opinion by Richard Ducote : Airlines need higher fares, not tiny cuts in amenities
Opinion by Richard Ducote
Tucson, Arizona | Published: 03.19.2006
The great minds of the airline industry have come up with some new ideas.
None of these ideas primarily focus on comfort or convenience for passengers. They are all about cash flow for the airlines.
Northwest Airlines is testing a program to charge an extra $15 for selected seats in coach — some aisle seats and the emergency exit row that offers more leg room.
Free meals, movies and alcoholic beverages disappeared long ago from most flights.
Where will this search for more revenue end?
Amadeus, an information services provider to the travel industry, said last week its survey found that nearly one-third of passengers would be willing to pay more for things like "guaranteed overhead storage above their seat" or "priority baggage handling."
Yes, I would like my bags to be on the same flight I'm on, thank you.
Pay toilets can't be far behind. How about charging to open and close the window screens?
Seat belts add value to the flight. What about a charge there? The Chiclet-size pillows and baby blankets could be brought back for a fee.
It's often said there is too much capacity on planes, thereby making it difficult to raise fares. The infrequent summer flights I encounter are always packed.
Airlines might consider a nominal charge to spray enplaning passengers with vegetable oil to make canning — er —seating a bit easier.
Such efforts to increase revenues only nibble around the edge of the problem. Real fare hikes are required for airlines to thrive.
Famed investor Warren Buffett observed in 1991 that the global airline business had not made a nickel in a century of manned flight.
Things have only gotten worse since, with several major U.S. carriers visiting Bankruptcy Court in recent years, some more than once.
Jet fuel prices jumped from $42 a barrel in January 2004 to $76 per barrel at the end of February.
The No. 1 carrier out of Tucson, Southwest Airlines, will see its fuel bill increase by $600 million this year over last year's $1.3 billion. The king of low fares recently ended its longstanding fare cap of $299 on its most expensive routes.
The industry demonstrably needs more money to stay viable.
The flying public, a spoiled lot, resists fare increases at every turn.
People seem to accept the fact that gasoline prices are creeping back toward $2.50 a gallon. Two years ago, such a price would have been considered shocking.
But we seem to think that, year after year, vacation after vacation, the $229 round-trip to the East Coast from Tucson is a constitutional right.
We have forgotten the incredible time value of flight.
Consider the alternative cost of driving three or four days each way to a distant vacation spot. Add up gas for the family van, motel stays and meals. And cut the vacation destination plans by a week to allow time for driving.
In the case of business travel, time value is even more demonstrable.
We can fly across the continent in the time it took our pioneer ancestors to make 20 miles in a horse-drawn wagon.
All fares should increase to preserve safe, dependable, convenient flights on reliable equipment operated by highly trained people. The five-and-dime cuts in amenities and $5 fare increases are not getting the job done.
We might be able to say that cost and value have reached equilibrium when, once again, a simple snack on a long flight is complementary.
Carriers' losing billions of dollars a year is not sustainable. Costs have been slashed. It's time to accept fare hikes as necessary for the long-term health of an indispensible service.
● Contact Richard Ducote at 573-4178 or [email protected].
Business
Opinion by Richard Ducote : Airlines need higher fares, not tiny cuts in amenities
Opinion by Richard Ducote
Tucson, Arizona | Published: 03.19.2006
advertisement
OAS_AD('300x250_1')The great minds of the airline industry have come up with some new ideas.
None of these ideas primarily focus on comfort or convenience for passengers. They are all about cash flow for the airlines.
Northwest Airlines is testing a program to charge an extra $15 for selected seats in coach — some aisle seats and the emergency exit row that offers more leg room.
Free meals, movies and alcoholic beverages disappeared long ago from most flights.
Where will this search for more revenue end?
Amadeus, an information services provider to the travel industry, said last week its survey found that nearly one-third of passengers would be willing to pay more for things like "guaranteed overhead storage above their seat" or "priority baggage handling."
Yes, I would like my bags to be on the same flight I'm on, thank you.
Pay toilets can't be far behind. How about charging to open and close the window screens?
Seat belts add value to the flight. What about a charge there? The Chiclet-size pillows and baby blankets could be brought back for a fee.
It's often said there is too much capacity on planes, thereby making it difficult to raise fares. The infrequent summer flights I encounter are always packed.
Airlines might consider a nominal charge to spray enplaning passengers with vegetable oil to make canning — er —seating a bit easier.
Such efforts to increase revenues only nibble around the edge of the problem. Real fare hikes are required for airlines to thrive.
Famed investor Warren Buffett observed in 1991 that the global airline business had not made a nickel in a century of manned flight.
Things have only gotten worse since, with several major U.S. carriers visiting Bankruptcy Court in recent years, some more than once.
Jet fuel prices jumped from $42 a barrel in January 2004 to $76 per barrel at the end of February.
The No. 1 carrier out of Tucson, Southwest Airlines, will see its fuel bill increase by $600 million this year over last year's $1.3 billion. The king of low fares recently ended its longstanding fare cap of $299 on its most expensive routes.
The industry demonstrably needs more money to stay viable.
The flying public, a spoiled lot, resists fare increases at every turn.
People seem to accept the fact that gasoline prices are creeping back toward $2.50 a gallon. Two years ago, such a price would have been considered shocking.
But we seem to think that, year after year, vacation after vacation, the $229 round-trip to the East Coast from Tucson is a constitutional right.
We have forgotten the incredible time value of flight.
Consider the alternative cost of driving three or four days each way to a distant vacation spot. Add up gas for the family van, motel stays and meals. And cut the vacation destination plans by a week to allow time for driving.
In the case of business travel, time value is even more demonstrable.
We can fly across the continent in the time it took our pioneer ancestors to make 20 miles in a horse-drawn wagon.
All fares should increase to preserve safe, dependable, convenient flights on reliable equipment operated by highly trained people. The five-and-dime cuts in amenities and $5 fare increases are not getting the job done.
We might be able to say that cost and value have reached equilibrium when, once again, a simple snack on a long flight is complementary.
Carriers' losing billions of dollars a year is not sustainable. Costs have been slashed. It's time to accept fare hikes as necessary for the long-term health of an indispensible service.
● Contact Richard Ducote at 573-4178 or [email protected].
