Written by: Aaron Katsman | January 13, 2009
The economic slowdown has taken its toll on the amount of travelers from Tel-Aviv to London, and as a result British Airways is lowering fares about 10%. For the slumping airline industry that has had to weather high fuel prices, the overhanging threat of terrorism resulting from 9-11, the current slowdown is another in a long line of events that have brought the industry to its knees.
For travelers, the round of price cutting is welcome. Deals abound, and smart consumers can find great deals. According to Globes: “In addition, the airline is offering overnight stays in hotels at Heathrow Airport for most long distance flights that are not scheduled to take off until the following day.”
Bon Voyage!
Written by: Aaron Katsman | August 14, 2008
It’s no secret that the airline industry has issues. Soaring fuel costs, have left airlines scrambling for ways to increase revenues. Instead of just raising fares and cutting capacity, airlines have decided to nickel and dime travelers to death. Just yesterday the Israeli El Al airlines decided to start charging travelers more for seats in an emergency row. This follows other airlines charging for pillows, food, luggage…etc.
Customers are getting fed up with an ever expanding list of fees. In an age where most industries have made their fee structures much more simple, the airlines have decide to drive us crazy. ” Sir, you’d like ice with your beverage? That’ll be 3 bucks.” Or “Miss, I am sorry but since your shoes have high heels, that’ll be $2.”
You know, if airlines really wanted to be fair about each individuals contribution to the amount of fuel used per flight, and then charge accordingly, they could use the supermarket method. When we go shopping, for many items, we pay per pound. Fruits, vegetables, ground beef all priced according to weight. Why don’t the airlines follow suit? Why should someone who is thin, pay the same amount as someone with a bit more girth? After all, our weight-challenged traveler causes more fuel to be used than our thin traveler.
Stop the madness. Just raise fares. It’s that simple.
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Aaron Katsman is Managing Editor of the Israel Opportunity Investor newsletter. He is lead portfolio manager for the Israel Growth Portfolio and Managing Director of America Israel Investment Associates, LLC. For more information, go to www.israelnewsletter.com or call 1-888-327-6179, or email aaron@profile-financial.com.
