Friday, November 14, 2008

One final question about airline fees

From the Consumerists comments about the Greg Dean United gouging fees story:

"Ironic part, though, these airlines keep installing idiotic and pointless fees in an effort to make more money, and yet they constantly fail to be profitable. You would think that with this kind of gouging, they could make money flying the damn planes.

Which begs the questions, where does all this fee money go? It doesn't go to the pilots, stewardesses or mechanics, who have had their pay slashed to ribbons in the past few decades. It doesn't go to the planes, which are old and usually in bad repair. It doesn't go to the gas, which is cheap. It doesn't go to the stockholders, because the stock is shit. I wonder what happens to it all."

Airlines as a whole have only made money in two years since 2002. The business model old or new just doesn't seem to working.



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