Matt Molnar
2008-12-02, 10:21 PM
US Airways' new baggage fees help improve performance (http://www.marke****ch.com/news/story/us-airways-new-baggage-fees/story.aspx)
By Christopher Hinton
Last update: 1:30 p.m. EST Dec. 2, 2008
NEW YORK (Marke****ch) -- New luggage fees at US Airways hasn't only beefed up its revenue, it's also caused a significant drop in checked-bags and improved the carrier's baggage handling performance, Chief Executive Doug Parker said Tuesday. At an analyst conference in New York, Parker said a $15 charge for the first checked-on bag has led to a 20% drop in checked luggage and improved handling performance by more than 20%. By introducing the fees earlier this year, airlines have reported sharp drops in multiple bag checks. Of course, fewer people have been flying as well. "It's helping us all to run better operations," Parker said. The new fee at US Airways accounts for most of the $400 million to $500 million in annual revenue for services, he said.
This guy oughta write a book called "Screwing Customers to Improve Service and Profit."
Maybe boost fares too...with less passengers maybe you'll surely be able to get planes boarded 20% faster and reduce delays 20%! Or start charging $5 to use the bathroom...less cleaning and lav servicing!
By Christopher Hinton
Last update: 1:30 p.m. EST Dec. 2, 2008
NEW YORK (Marke****ch) -- New luggage fees at US Airways hasn't only beefed up its revenue, it's also caused a significant drop in checked-bags and improved the carrier's baggage handling performance, Chief Executive Doug Parker said Tuesday. At an analyst conference in New York, Parker said a $15 charge for the first checked-on bag has led to a 20% drop in checked luggage and improved handling performance by more than 20%. By introducing the fees earlier this year, airlines have reported sharp drops in multiple bag checks. Of course, fewer people have been flying as well. "It's helping us all to run better operations," Parker said. The new fee at US Airways accounts for most of the $400 million to $500 million in annual revenue for services, he said.
This guy oughta write a book called "Screwing Customers to Improve Service and Profit."
Maybe boost fares too...with less passengers maybe you'll surely be able to get planes boarded 20% faster and reduce delays 20%! Or start charging $5 to use the bathroom...less cleaning and lav servicing!