Originally Posted by
From NYC
By your equation then, how much does still having pillows, blankets and meals bring people to CO, which they do advertise, including running expensive TV ads?
I think those differences were from another era. CO kept those at a time when fixed costs were the most significant component of their total costs, and it made sense to chase market share. I don't believe that is any longer the case. Given their capacity cuts, I suspect CO agrees.
Originally Posted by
From NYC
How many more would’ve come in had CO started a newer campaign that included these plus no 1st checked bag fee? I don’t know the answer to the 1st, but I’m curious to find out, and we’ll never know the answer to the 2nd. The first group has to cost CO money per ticket sold in provision, cleaning, etc. I guess you are arguing that not charging a 1st bag fee is that straw for the camel, but CO never gave the proposition a true test.
What I'm arguing is that these things could conceivably bring passengers, but they don't bring incremental revenue per passenger, or at least not as much incremental revenue as charging separately. With loads as high as they are, CO doesn't need more passengers right now, they need to raise the revenue from the passengers they do carry.
Originally Posted by
From NYC
I also wonder how much of an accounting goodwill charge CO will be taking in the future, let alone if there’s a drop in passengers, because of the rising discontent from previously loyal fliers over the downgrading of OP and over rising nickle and dime fees.
Very funny.
Originally Posted by
From NYC
Lastly, if Easyjet and Ryanair can offer a reduced fee for people who know they will check a bag when they book a ticket online, why can’t CO?
I agree. And I would be shocked if CO and the other carriers didn't move toward this method in the near future.