US Airways returns to free drinks for all - Top Stocks Blog - MSN Money
 
Search Top Stocks:

US Airways returns to free drinks for all

Posted Feb 23 2009, 10:33 AM by Kim Peterson
Rating:

Seven months after it began charging customers $2 for sodas, coffee and other beverages, US Airways (LCC) is reversing its policy and will now give out drinks for free.

What happened? Well, in this airline's case, it was more about what didn't happen.

First, other airlines didn't follow US Airways' lead. Sure, they were fine with fees for checking bags and other things, but they drew the line when it came to charging for drinks.

Second, passengers didn't accept the fee. It became about more than a soda. It was a symbol of the gotcha nickel-and-dime game that some airlines -- with the exception of Southwest (LUV) -- are playing with customers.  

These days, the ticket price is just the starting point. Throw in additional fees for checking bags, for blankets and pillows, for snacks and even for the best seats in coach. Sometimes there's a fuel surcharge. Or a fee for paper tickets.

I suspect that having to pay for non-alcoholic drinks was the last straw for some US Airways customers.

"This difference in our service has become a focal point," said chief executive Doug Parker in a memo to employees. But, he didn't express regret about the soda fee.

"It would have been a bigger risk for us not to have tried charging for drinks," he said, "because innovation and a new business model are desperately needed."

So Parker thinks charging for sodas is innovation? At any rate, its fees for pillows, blankets and other items will still bring the company as much as $500 million in revenue this year. The lost goodwill and bad publicity? Priceless.

Photo credit: Adrian Pingstone, public domain release

Related reading:

Ad Force One

Can the legacy airlines win back customers?

United connects to iPods and iPhones

Southwest Air's stock turbulence

Delta becomes the world's largest airline

Back to Top Stocks Digg this | Email this | Link to this
Comments

 

This is exactly why I stopped flying U.S. Airways. I can't stand being nickeled and dimed!

Liz (Posted 02.23.09 1:55 PM) Report Abuse

i flew once on US air... the message was clear , the service was so bad.. i promised myself  never to fly with them again.. i am happy i made that decision.

iman (Posted 02.23.09 1:55 PM) Report Abuse

The cheapness of US Air is so petty. Charge me the 2 to 8 bucks on the ticket

On my last trip back from Chicago a women next to me had to pay for a pillow and a blanket .She was on CHEMO ! I will pay another $5 on the ticket to give this woman a pillow and a blanket.

I was embarassed for all the people on the flight.

Harold Busund (Posted 02.23.09 1:59 PM) Report Abuse

$2 in the terminal or $2 on the plane? It is still cheaper than a Saturday nite in Tiajauna!

Dad One (Posted 02.23.09 2:02 PM) Report Abuse

I flew "Worst Air" to St Maarten in January.  They nickle dimed you on everything-check a bag $15, a drink of water $2, drinks $8.  Then they had the nerve to peddle their credit card apps to everyone on the plane.  No movie nothing.  I will walk rather than fly "Worse Air" again.  Service in the airline industry is an oxymoron!

Mike Samide (Posted 02.23.09 2:03 PM) Report Abuse

These ball washers already charge way too much as it is.

Dave Will (Posted 02.23.09 2:07 PM) Report Abuse

I have long thought the airlines are missing out on a great source of revenue by not demanding a fee for the priviledge of sitting down on a flight - I mean, couldn't they just install those leather subway straps and have standing room? Then those silly enough to pony up for an actual seat, could be given "platinum points" etc for their willingness to spend extra. Also, extra fees could be charged for life vests, oxygen masks and such. Just because an emergency arises, does not mean some folks are more equal than others. Come on you airline corporate types, let's get creative!

Roger Baron (Posted 02.23.09 2:09 PM) Report Abuse

My wife and I travel by air for pleasure 1 or 2 times a month.

Because of the fees other airlines charge we now almost always fly Southwest.

US Air and Delta have lost our business forever. Just one family. Almost $10,000 a year loss to the other airlines. We are fed up.

JD (Posted 02.23.09 2:14 PM) Report Abuse

I try to fly Southwest only if possible. I have found that they are the best price, the friendlyest and just better all around.  When I do go some where, where they don't fly I am bummed because I know I don't get the service with any other airline. For years they took care of my under age son when he flew unaccompanied.  Then his father put him on another Airline and it was a mess.  So I told him Southwest or he doesn't come to visit. :}

Anna (Posted 02.23.09 2:17 PM) Report Abuse

Good going USAirways...just flew on them and thought it was awfully cheap to charge for everything, including water and coffee..  I understand the need surcharges when the price of oil was so high, but that is old news.  

But in the big picture, first and foremost, get me to my destination and home safely-the rest is really not worth talking about!!

Carole in NC (Posted 02.23.09 2:17 PM) Report Abuse

1 2 3 4 5 6 7 8 9 10 > Last

Send a Comment

Comments must be directly related to the blog entry. Comments with offensive language will be deleted. Your e-mail address won't be displayed.

(please, no HTML tags. Web addresses will be hyperlinked):