April 26, 2006
Nickel & Dime Airlines

Airlines have accomplished the impossible.  They’ve gotten worse.  You didn’t think that possible?  For years major carriers were Example A of a Mickey Mouse outfit.  We’ve followed them through their standing by the side of the intersection holding a “Will Fly For Food” sign begging the Feds for subsidies, now our nation’s air carriers have morphed into America’s “nickel and dime” industry. 

Northwest, nicknamed “Northworst” by frequent fliers, led the way announcing henceforth they would be charging extra for aisle seats or any seat promising a quicker destination exit. Claiming the “surcharge” for the most desirable seats wasn’t something they wanted to do, Northwest, with a straight face, claimed no other option was available due to the challenges presented by low cost competitors such as Southwest and Jet Blue, the rise in the price of jet fuel and union agreements they were contractually bound to honor.  At no time did executives blame their own lack of management skills. We’re supposed to believe all their problems are caused by employees, competitors and Osama Ben Laden. 

This is not to single out Northwest as the worst of a bad lot.  Want a textbook on how not to run a business?  Look no further than the airline industry. 

United, a couple of weeks ago I experienced the thrill of flying the “Friendly Skies” to the East Coast and back, is now charging $24 to $99 more for Economy Plus, a section featuring five extra inches of leg room.  “Oh you want a comfortable place to sit?  Well that’s extra.  But don’t blame us, it’s the fault of our competition.”  What?  Other airlines are the cause of being squeezed into a space that would cramp a seven year old? 

News reports detail major air carriers mulling a three dollar per bag charge for passengers checking in curbside (that expenditure can be covered by no longer tipping the outside bag checker and won’t that do wonders for employee morale), plus there may be surcharges on paper tickets, using a reservation agent (carriers want you to book your flights on the internet) and Air Canada made the ultimate nickel and dime move electing to charge two bucks for an inflatable pillow and a blanket. 

American Airlines, describing themselves as the industry leader which is like being the airline Moe while every other carrier is either Shemp or Curly), recently gave up on their effort to charge a buck for soft drinks or coffee but have discontinued peanuts while coming up with a four dollar charge for “snack boxes.” 

Meanwhile lower cost carriers like Southwest and Jet Blue prosper by offering air service featuring wide comfortable seats, TV’s and a no frills, no food but we’ll get you from Point A to Point B at a reasonable rate airline.   Imagine an air carrier offering customers what they want.  What a concept!