9.23.2009

Don't even think it!

"If airlines could prohibit passengers via regulation to carry food on flights, it should improve the ancillary revenue stream opportunities considerably. Assuming the majority of passengers decided against eating prior to departure, the industry would benefit from a potentially larger audience--the five-year average number of annual enplanements (defined as one fare-paying passenger) was approximately 746 million according to the Bureau of Transportation. In addition, these other revenue streams would enhance profitability tremendously because the markups on these products would likely remain excessive. Although the public would negatively react to this change, this structure is analogous to the setup at every major sporting event venue or concert hall."

Once airlines started floating the idea of dispensing with seats it seemed nothing else was sacred. On short haul flights it doesn't seem so bad-indeed, many airlines do it already- but forcing travelers to pay for meals on a 10 hour trans-continental flight seems even less in keeping with the natural order than getting in a metal tube and hurtling four miles above the ocean in the first place.


Morningstar:

No comments: