Click on a label to read posts from that part of the world.
Airlines celebrate record profits with new fees
Let's face it: ancillary fees have been good to the airlines. Paying extra for food, checked bags and premium coach seating – not to mention cancellations – is the principal reason for the extra cash the industry pulled in last year. And having tasted success, the airlines want more.
George Hobica, founder of AirfareWatchdog.com, tells the Tampa Tribune, effectively, that it's a defensive move, since "[a]irlines don't want to go back in the red."
It's also consistent with the emerging strategy of finding new ways to charge customers without having to raise ticket prices.
According to Hobica, as many as 10 new fees could gain traction in 2011, some of which are in use already.
So, is it gouging or prudent business? That's hard to say. Airlines are in the business of generating profits – they can't be faulted for that. Customers have little negotiating power, so the whole line of desperate thinking that we can somehow prevail seems moot.
[photo by Lindsay_Silveira via Flickr]