Ricky B
Contributor
From a New York Times article published today:
http://www.nytimes.com/2014/05/09/u...-a-smile.html?partner=rss&emc=rss&src=ig&_r=0
At some point, the link will be broken, and so for the benefit of future readers, the article's thesis is the fares have fallen so much in inflation-adjusted dollars that, even with the add-on fees, airline fares are low by historic standards.
Another quote:
The article makes the point that "unbundling" the price for different services allows the passenger to pay for only what he uses. Don't eat meals? Don't have to pay for them. Don't have a bag to check. Don't have to pay for it.
The news in the article is that Frontier Airlines is now charging a fee for carry-on suitcases, and the article argues that such a fee is fair and sensible.
I'd love to post the entire article here, but it would violate the NYT's copyright. So here's a link:... nearly every major American carriers entry into bankruptcy court since 2001. Since deregulation, the domestic airline industry has lost more money than it has made. In fact, it lost more money from 2001 through 2006 than its cumulative inflation-adjusted profits since 1947. For decades, airlines have served as vehicles to transfer wealth from investors to employees and customers; neither passengers nor employee unions could expect that to continue forever. [emphasis added]
http://www.nytimes.com/2014/05/09/u...-a-smile.html?partner=rss&emc=rss&src=ig&_r=0
At some point, the link will be broken, and so for the benefit of future readers, the article's thesis is the fares have fallen so much in inflation-adjusted dollars that, even with the add-on fees, airline fares are low by historic standards.
Another quote:
After adjusting for inflation and adding in baggage and change fees, domestic airfares excluding taxes have risen 16 percent since 2005, but they are still 39 percent lower than they were in 1980.
The article makes the point that "unbundling" the price for different services allows the passenger to pay for only what he uses. Don't eat meals? Don't have to pay for them. Don't have a bag to check. Don't have to pay for it.
The news in the article is that Frontier Airlines is now charging a fee for carry-on suitcases, and the article argues that such a fee is fair and sensible.