NYT: Class Conflict
By MICHELLE HIGGINS
Published: November 25, 2007
Ron Barrett
OVER the past few years — and this will probably come as no surprise to anyone who has gotten on a plane over this Thanksgiving weekend — flying in coach has become an increasingly miserable experience. Legroom is practically nonexistent. Passengers are more tightly packed together. Hot meals have been eliminated. Ditto pillows and blankets. And the next time that guy in front of you leans his seat back directly into your face, few of your fellow passengers are likely to blame you if you feel a brief, murderous urge to strike back.
All this has created a generation of fliers who now view getting on a plane as roughly akin to entering the ninth circle of hell.
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The fact is that airlines, flying so close to full capacity today, have realized that they really don’t have to cater to economy passengers — most of whom are booking on price alone, and who increasingly have no real airline loyalty — because the cost of doing so would never be worth it in pure bottom-line terms.
Does that sound harsh? Well, an unexpected — but not totally surprising — insight into how airline executives think these days came this summer when B. Ben Baldanza, chief executive of the aggressively bare-bones Spirit Airlines, hit “reply all” to an e-mail message from a passenger who wished to be compensated for a delayed flight that caused him to miss a concert he was planning to attend. Mr. Baldanza’s response, which seemed to be intended only for a Spirit Airlines employee but subsequently appeared on multiple travel blogs, said: “Please respond, Pasquale, but we owe him nothing as far as I’m concerned. Let him tell the world how bad we are. He’s never flown us before anyway and will be back when we save him a penny.”...
Thus airlines are increasingly cutting back services in coach or charging passengers for things that used to be free, like meals ($5 for a snack box on United) or drinks ($2 for a 16-fluid-ounce bottle of water on Spirit) or, in the case of Delta, US Airways, Northwest and Continental, starting to use narrow-body planes more frequently on trans-Atlantic flights, making those long-haul flights more cost-effective, albeit at the expense of passenger comfort....
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United says just 8 percent of its customers — the ones paying a premium for first and business class — generate 36 percent of passenger revenue. That’s why it is investing hundreds of millions of dollars to upgrade its first- and business-class cabins with lie-flat seating and other amenities across its entire international fleet of wide-body aircraft. Industry analysts say that most airlines have rightly decided that it makes little economic sense to provide expensive perks to customers paying the lowest fares....
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All of this restructuring has helped airlines make money again, even in the face of soaring fuel prices. After losing a cumulative $35 billion between 2001 and 2005, United States airlines recorded their first profitable year of the millennium in 2006, according to the Air Transport Association, when the industry posted a $3 billion net profit. This year, the association projects earnings to be in the $5 billion range....
http://travel.nytimes.com/2007/11/25/travel/25conflict.html?pagewanted=all