The stock is down about 5% today on these grim announcements and word that the airline is cutting 2,500 jobs (and perhaps on oil prices). It had already planned on cutting capacity, though it had positive news yesterday, with good scores for being on time. US Airways says the current new fees will bring in $250 to $300 to $400 million. I don't think price-conscious passengers are going to remain oblivious to the idea that an airline ticket is not the real price anymore. It'll be like renting a car -- you know that it's really going to cost you twice as much as the rate.
US Airways says it is cutting movie service because the 500-pound machines cost them $10 million in fuel and other costs. It'll keep the movies on flights to Hawaii and overseas. The real problem with the big airplane screens is that nobody is renting the headphones anymore. I don't remember the last time I watched a movie -- or even one of those schlocky sitcoms the airlines seem to love -- on a big airplane screen. We all want our own entertainment -- and bring it in the form of MP3 or DVD players. In an effort to appeal to the broadest audience, the industry has bored everyone. Reuters says that a cut in inflight movies -- if it goes further -- could hurt the entertainment industry, which makes roughly $240 million a year from airlines.
US Airways is already toying with back-of-seat screens. It's hard to imagine that the combined weight will be less than 500 pounds. More likely, US Airways has found that it will have to come up with entertainment that everyone wants -- even if that just means a wide choice. It is already dreaming up ways to charge you more to use the new system. Everyone wants the seat-back screens, but as CNN reported, we also want to be able to just use the screen with our own devices (which is what Singapore Airline does). At least they will be charging for something people actually want.











Reader Comments (Page 1 of 1)
7-10-2008 @ 3:19PM
Mike Rath said...
My family fully intends to help the airlines with their financial difficulties--We are no longer flying!!!!!
7-17-2008 @ 3:35PM
cfly said...
Hey Mike--let us know what business your family is in and my family will do the same for you, after all, it is about YOU and what is good for YOU now isn't it? I have a feeling you and your family are part of the over-all problem with this country and we as an airline and just as people in general will not miss you one bit. It is going to be a lonely place in life where you land--whether you fly there or not!