U.S. Airlines Eye Foreign Carriers' Success at Selling
Ryanair's $326 million from non-traditional sources in the last fiscal year represented 16% of its revenue, and nearly matched its annual profit.
"Ryanair might be able to do it, but the legacy carriers have tried it before and failed miserably," says Barbara Beyer, CEO of Avmark, an aviation consulting firm. "There's nothing that tells me they won't fail miserably again."
Aviation consultant Michael Boyd, who is president of The Boyd Group, says, "This isn't Europe," and the U.S. airline industry isn't positioned to generate substantial revenue outside its core business. Airlines should not sell such things as parking spaces, car rentals, insurance and hotel rooms, he says.
"To generate revenue from outside sources, there must be a market need -- a market gap in providing that service," says Boyd. "There isn't any."
American's Garton says he doesn't foresee ads on planes and overhead luggage bins, because they "wouldn't be consistent" with the airline's brand. "It doesn't feel right for us today," he says.
But "that could change," he acknowledges, recognizing the importance of ancillary revenue. "We're not Ryanair, but we're not ignoring this opportunity," Some items Ryanair sells in-flight
*Cheese or salami pizza, $5
*Chicken soup, $4.50
*Champagne, $18
*Lotto card, $2.50
*Digital camera, $124
*iPocket video-audio player, $149
News stories provided by third parties are not edited by "Site Publication" staff. For suggestions and comments, please click the Contact link at the bottom of this page.
- « Previous Page
- 1
- 2
- 3
- Next Page »
Do you recommend this News?
We Recommend
-
News
Time is Money
Cover Story Time is Money The 'no frills' approach of Europe's low cost carriers is very much in evidence when buying ground services, but only certain types of ground handler need apply...
-
News
European Airlines Gamble to Win over More Passengers
Several low-fare European airlines, including Ryanair, Flybe and Myair, are selling scratch cards for prizes.
-
News
Ryanair Offers Gambling Web Site
Ryanair Holdings PLC, Europe's fastest-growing airline, said Wednesday it is launching a new gambling Web site in a deal with a leading Internet gaming company, Jackpotjoy.com.
-
News
JetBlue Tries to Bounce Back from Storm of Trouble
After Valentine's Day debacle, management team gets new faces






