A New Fare System for Air Travel

The present system of pricing air travel may be antiquated. Airlines are developing new ways to price air travel and increase profitability. American Airlines will be offering an ‘a la carte’ fare system:

“…Starting next year, American, which led a stampede by U.S. carriers to charge customers for checking even a single suitcase, plans to imitate the a la carte pricing structure pioneered by Air Canada, airline officials say. There are likely to be a few basic fare plans, and travellers can pick additional services — for a fee.”

link: American Airlines Considers a La Carte Pricing

The task for airlines that use this system will be convincing the customers how it is value added. That is, how does it benefit the customer? With the changes in air travel, the advantage has been decidedly one sided. With the economic pressure and customer anger at these extra charges, the airlines may have to increase their public relations budget. The flying public does have a limit to what they will tolerate. This may be an opportunity for airlines such as Southwest Airlines, which as hung onto traditional measures such as service and loyalty.

Catherine Forsythe

Internet on American Airlines

American Airlines has added another income source. It is offering broadband service:

“…For $12.95, passengers on AA flights using its Boeing 767-200 will be able to surf the Net, check e-mail, instant message and access corporate VPN accounts using the system by Aircell LLC.

The ground-based system – called GoGo – won’t enable any voice-based functions.”

link: American Airlines launches in-flight broadband service

The limitation of voice based functions seems in keeping with the recent cell phone bans made by Congress. It seems that VoIP will not be an alternative.

Catherine Forsythe

American Airlines Targeted in Phishing Attack

American Airlines has issued a security warning against a phishing attack:

“American Airlines has warned members of its AAdvantage frequent flier program of a pfishing (sic) scheme that uses a bogus AAdvantage Web site to reap personal financial information, which can be used in identity theft and other financial fraud.”

link: Phishing warning issued

In these times of rapid regulation changes in the airline industry, the travel public may see this survey scheme as being a legitimate consumer poll. The hackers and phishers are clever. They are stellar at manipulation. They try to take advantage of current news issues and recent tragedies, natural or man made. This airline survey ploy is an attempt at identity theft. Don’t be fooled…

Catherine Forsythe
Director of Operations
FlyingHamster: http://flyinghamster.com/

Fee for First Checked Luggage

With the ever increasing fuel costs, airlines are scrambling to find ways to offset those costs and maintain profitability. American Airlines has announced layoffs and a fee for the first piece of checked luggage:

“…The nation’s largest carrier said Wednesday the fee for the first checked bag starts June 15 and that it would raise other fees for services ranging from reservation help to oversized bags. The other fees will mostly range from $5 to $50 per service, the airline said.”

link: American to begin charging for first checked bag

American Airlines and the other carriers will be looking for additional ways to generate revenue. To avoid any unpleasant surprises, check the web site of the airlines that you will be using. Policies and fees will certainly be modified as operating costs continue to escalate.

Catherine Forsythe
Director of Operations
FlyingHamster: http://flyinghamster.com/