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CNN Live Sunday
Airlines Try to Survive in Tough Economic Times
Aired January 05, 2003 - 18:04 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ANDERSON COOPER, CNN ANCHOR: Air travel is becoming a place of lowered expectations. Huge losses and fewer flyers are forcing airlines to give less to passengers while asking for more. Patty Davis is at Reagan National Airport with more on what the airlines are trying to do -- Patty.
PATTY DAVIS, CNN AVIATION CORRESPONDENT: Well, Anderson, one airline that is trying to give passengers more America West. Starting tomorrow that airline will start selling food for flights that are shorter than about four hours. Normally it doesn't provide as a low cost carrier, doesn't give meals aboard those flights. We talked to passengers and they were pretty mixed today about being offered to purchase a $3 snack box or even an $8 omelet with sausage, hash browns and some fruit on the side.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: I wouldn't want to spend that much money because for what they offer it's not worth the money.
UNIDENTIFIED FEMALE: Sometimes when they have those little snacks it's not enough and it's a long flight, so I probably would do that.
(END VIDEO CLIP)
DAVIS: Now Northwest Airlines says that it is indeed studying this idea. Of course that's a full service carrier and Northwest stopped, as other full service carriers did, giving meals to passengers on those shorter flights. Of course one reason why that is is because airlines last year lost an estimated $10 billion, this year expected to rack up another $3 billion to $6 billion in losses.
Now in addition to meals, though, most of the major carriers have tough restrictions in place on their non-refundable tickets but that does in fact save airlines millions. Many also charge for a paper ticket. Northwest and American now are charging for bags 50 pounds and over. The restriction there used to be 70 pounds that you could check for free. Most now charge for a third bag if you do indeed bring that onboard.
Now, the airlines for their part say that they are cutting costs in every way that they can, that they are just trying to survive. One airline lobbying spokesperson in fact told me today that most passengers do indeed value lower fares more than they do these perks and they are delivering on those lower fares right now -- Anderson. COOPER: Patty, you said I think in an earlier report some business travelers, however, kind to look to those perks as something they look forward to when traveling. Is there a fear that they may drive away some of those business customers with these nickel and diming of perks?
DAVIS: Well, that's one of the reasons why business travels are being driven away from the full service carriers. They've been going to the low cost carriers. Another issue there is fright and so the full service carriers, the groups that represent them are saying that they're most furious about this non-refundable issue, the restrictions that are put on that, and that's really costing businesses a lot of money.
A lot of businesses now cutting back on travel simply because of the economy but in some cases they're saying to avoid the travel, to avoid the cost of travel and the fact these perks aren't there, they're telling their people to drive -- Anderson.
COOPER: All right, Patty Davis thanks at Reagan National Airport.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Aired January 5, 2003 - 18:04 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ANDERSON COOPER, CNN ANCHOR: Air travel is becoming a place of lowered expectations. Huge losses and fewer flyers are forcing airlines to give less to passengers while asking for more. Patty Davis is at Reagan National Airport with more on what the airlines are trying to do -- Patty.
PATTY DAVIS, CNN AVIATION CORRESPONDENT: Well, Anderson, one airline that is trying to give passengers more America West. Starting tomorrow that airline will start selling food for flights that are shorter than about four hours. Normally it doesn't provide as a low cost carrier, doesn't give meals aboard those flights. We talked to passengers and they were pretty mixed today about being offered to purchase a $3 snack box or even an $8 omelet with sausage, hash browns and some fruit on the side.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: I wouldn't want to spend that much money because for what they offer it's not worth the money.
UNIDENTIFIED FEMALE: Sometimes when they have those little snacks it's not enough and it's a long flight, so I probably would do that.
(END VIDEO CLIP)
DAVIS: Now Northwest Airlines says that it is indeed studying this idea. Of course that's a full service carrier and Northwest stopped, as other full service carriers did, giving meals to passengers on those shorter flights. Of course one reason why that is is because airlines last year lost an estimated $10 billion, this year expected to rack up another $3 billion to $6 billion in losses.
Now in addition to meals, though, most of the major carriers have tough restrictions in place on their non-refundable tickets but that does in fact save airlines millions. Many also charge for a paper ticket. Northwest and American now are charging for bags 50 pounds and over. The restriction there used to be 70 pounds that you could check for free. Most now charge for a third bag if you do indeed bring that onboard.
Now, the airlines for their part say that they are cutting costs in every way that they can, that they are just trying to survive. One airline lobbying spokesperson in fact told me today that most passengers do indeed value lower fares more than they do these perks and they are delivering on those lower fares right now -- Anderson. COOPER: Patty, you said I think in an earlier report some business travelers, however, kind to look to those perks as something they look forward to when traveling. Is there a fear that they may drive away some of those business customers with these nickel and diming of perks?
DAVIS: Well, that's one of the reasons why business travels are being driven away from the full service carriers. They've been going to the low cost carriers. Another issue there is fright and so the full service carriers, the groups that represent them are saying that they're most furious about this non-refundable issue, the restrictions that are put on that, and that's really costing businesses a lot of money.
A lot of businesses now cutting back on travel simply because of the economy but in some cases they're saying to avoid the travel, to avoid the cost of travel and the fact these perks aren't there, they're telling their people to drive -- Anderson.
COOPER: All right, Patty Davis thanks at Reagan National Airport.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
