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"Shoes off." "Laptops out." "Your flight has been cancelled." Sound familiar? If you're one of the masses who has been de-shod, wanded (or worse) and kept waiting, you know just how appealing coach travel might be looking to lots of people who are not yet your customers. Add to that the airlines' cutting of service to more than 400 airports in the last year alone, with nearly 30 cities losing their air carriers completely, and you've got an opportunity or two in the making. Airlines open window with service cuts In May alone, the total number of scheduled flights in the United States dropped three percent over the same month last year, according to the Official Airline Guide. Small cities are taking the biggest hit, and the news may get worse. According to the Department of Transportation, which administers the Essential Air Service program, a subsidy program created under deregulation to help ensure small and rural areas would continue to be served, airlines have asked to opt out of subsidy contracts to some 20 cities so far in 2008. In 2007, airlines asked to drop 24 cities. And in 2006, airlines asked to drop contracts for 15 cities. Small airlines are struggling, and as some shut their doors outright, more cities may lose out. Mesa Air Lines, a Phoenix-based regional carrier, recently said it would shut down its subsidiary Air Midwest on June 30, eliminating service to 16 small cities in the 10 remaining states where it still operated. Get ready for the fourth quarter June has been full of dire announcements from the biggest airlines as well: American Airlines said it would cut domestic flight capacity by 11 to 12 percent after the busy summer season; Continental has announced cuts of 11 percent for the same period. United Airlines will reportedly cut capacity by 17 or 18 percent. Delta and others have also announced plans to cut capacity during the fourth quarter. Add in hassle factor The airlines are creating all sorts of new opportunities in other ways as well. Last month, American Airlines was the first to announce it would start charging many passengers for checked baggage, and United Airlines quickly followed suit. U.S. Airways has gone the nation's leading carriers one better, not only charging for baggage but also for onboard sodas and the privilege of using one's frequent flier miles. Most airlines now charge for the privilege of purchasing tickets via a live telephone reservations agent rather than online. Stories have started to crop up that some airlines are considering charging passengers by weight, like freight. Not surprisingly, Amtrak has been reporting a surge in business. How to take advantage Air travelers are getting so fed up, it may only take a carefully placed ad or two to stimulate real, measurable results for coach operators. Consider your headline carefully. You could attempt a variant on: "No baggage fees and the legroom is always free: [your trip] for only [price] per person." And if you're near an underserved air market and have never before considered offering scheduled service, now may be the time to look into it. Apparently the sky is the limit after all. Here are some links to help you figure out if cities in your area, or those that you travel to, are losing capacity (and gaining coach-market potential), as well as a link summarizing extra fees for baggage, meals, etc.: Cities losing air capacity--roundup List of cities asking to drop out of EAS program Extra fee chart The FYI from MCI editorial staff values your feedback. Please e-mail any suggestions, comments, or ideas for future articles to fyi@mcicoach.com. |
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