Would you be willing to pay less for your next airline ticket in exchange for flying in the “Standing Section” of the aircraft? Note that today in not April Fools Day and this is not part of a funny MAD TV skit. It’s a real proposal and, if Ryanair has their way, you’ll get to save money soon by standing on one of their flights.
passengers carry their own luggage from the terminal to the airplane, eliminating luggage handlers. Passengers of course would still pay £5 (around $8) for the privilege of carrying their own bags!
Perhaps their most out-of-the-box idea, as reported by The Sun of London, is to have passengers “pay less to huddle next to what have been described as ‘bar stools’, with seatbelts around their waist.” The objective: to pack more people in and boost profits.
Ryanair chief Michael O’Leary says he has had talks with Boeing about designing a jet with standing room. He claims he got the idea from the Chinese airline Spring, which is proposing a vertical seating option. Estimates are that they could pack in 50% more passengers while cutting costs by 20%.
Before purchasing a fleet with a standing section, approval from the Irish Aviation Authority is needed. A Ryanair spokesperson said, “If they approve it, we’ll be doing it."
Airline Economic Model is Broken
John F. Infanger of the Airport Business blog reports that “at the recent AAAE convention, US Airways CEO Doug Parker told airports that the airline economic model is broken and a new one needs to be found.” Evidence of that abounds and the insanity is not just limited to Ryanair.
Would you work for free? That was the offer British Air made last month to pilots and other employees. According to Business Week, BA “is giving staff the option of working without pay for up to a month in order to ‘play their part’ in what chief executive Willie Walsh describes as a ‘fight for survival’…employees can opt for between one and four weeks' unpaid work, with the salary deduction spread across between three and six months' pay packets…There is also the option of up to a month's unpaid leave.” But earlier today, cabin crews rejected proposals including job cuts and pay freezes.
Last week, the annual J.D. Powers North America Airline Satisfaction Survey revealed that overall customer satisfaction with airlines has declined for a third consecutive year to a four-year low in 2009. Although on-time arrival rates improved, this was offset “by decreased passenger satisfaction with in-flight services, the flight crew and costs and fees, compared with 2008.” Of course this survey was completed before Ryanair’s announcement of “vertical seating;” one can only imagine the effect that will have on customer satisfaction.
Earlier today, American Airlines reported that June traffic levels dropped by 8.1%. United Airlines reported that June traffic declined by 7.5%. However, their load factor increased to 85.9% versus 85.4% a year ago, indicated that they’ve pulled aircraft from service at a rate that closely matches the overall revenue drop.
Last month, the International Air Transport Association (IATA) revised their estimates, doubling this year’s projected losses for the airline industry. After estimating a $4.7 billion loss as recently as March, it now forecasts worldwide airlines losses of $9 billion. $1 billion of those losses are projected for North American airlines which, due to the decline in oil prices, is actually an improvement over the industry’s $5.1 billion loss in 2008. Fueling the losses is a drop in industry revenues, projected to decline 15% over 2008 levels.
The Future of Airline Travel
Years ago, I had a boss who precisely summed up our work situation. He said that we were expected to constantly find a way to “do more with less.” And that if we got good enough at our jobs, we’d be able to “do everything with nothing.” He accurately described the internal processes of any company in a maturing industry, such as the airline industry.
Fortunately, we continue to see positive innovation by airlines like JetBlue and Southwest, which led in their category of the J.D. Powers survey. Sadly, we’re going to be asked to give up even more in the future in exchange for keeping airline ticket prices low. For now, I’m thankful I’m not stuck in a middle seat in the standing section!
I would actually prefer to carry my own luggage to the plane. That way I'll know for certain that it's going same place I am going, and not to Timbuktoo!
And I can see going on a "standing" trip for a shorter flight, if it's much cheaper. Though delays do happen in aviation, and if your 1-hour flight turns into a 4-hour flight for whatever reason, you might find yourself very tired afterwards...
Posted by: chephy | October 03, 2009 at 10:32 AM