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airlines
For airlines, business class is fare game
Brad Foss
Boston Sunday Globe, October 13, 2002
Summary: With airlines expected to lose nearly $8 billion for the second year in a row, the industry has become less generous with business customers who want to fly on the cheap. The airline industries have added more restrictions. Carries have increased fees for paper tickets and extra baggage. The airlines no longer offer free alcoholic drinks on international ones. Also carriers have gotten particularly tough with corporate customers, refusing to let them use discounts negotiated by their employer when they purchase cheaper fares aimed at leisure travelers. The cheapest leisure fares are about one-sixth the price of typical business fares. If customers buy cheap fares at leisure travelers, the chances that they have to follow a lot of restrictions such as these tickets are nonrefundable tickets; customers will have to pay a fee to fly standby; and those customers who miss their flights will have to buy brand new tickets. Travelers think because of the airlines add more restrictions and fees are really annoying, so the benefits of cheap tickets generally outweigh the downside.
Bias: Air travelers began to curtail spending roughly 18 months ago as a result of the economic downturn. Also it is affected by last year’s terrorist attacks. To survive, major carriers undertook a wide range of cost-cutting measures. Employees were laid off. Planes were grounded. Schedules were shrunk. But in contrast, the stricter rules, extra fess, and scaled back services aggravate travelers. According to David Swierenga, chief economist at the Washington based Air Transport Association said “the industry is losing its shirts, is flat on its back and is looking for every dollar or revenue that it can find.” If business customers want to fly on the cheap, the airlines will add hefty fees with tight restrictions. These carriers hope to generate tens of millions of dollars by charging customers more fees on these cheap tickets.
Reaction: Now a day, it is not easy to find cheap tickets without restrictions and fees. The question for the travelers is “should they buy the refundable fares?” To me, travelers have to be careful about making their flights and sticking to their original travel itineraries because they will have to pay for fees if they decide to change the schedules or cancellations. Also if travelers cannot decide their schedules, they should be willing to pay the fares without the restrictions or refundable fares. Also, it would be better way for both travelers and airlines, if travelers would be willing to pay a touch more and carriers are easy on the restrictions and fixed the problems that cause delays.