it figures

DeltaFlot · 08-21-2001, 07:11 PM

Airlines scaling back inflight perks
August 21, 2001 Posted: 10:13 a.m. EDT (1413 GMT)

NEW YORK (Reuters) -- For frequent flyers the days of frappuchinos, refresher towels and free-flowing mineral water in the sky may be over.

With fewer special meals and slimmer beverage menus, airline passengers are starting to feel the pinch as corporate bean-counters scurry to slash costs in the face of the steepest industry losses in more than a decade.

"When the industry needs to tighten its belt, it cuts services, which affects the passengers," said Dawn Deeks, a spokeswoman for the Association of Flight Attendants, which represents about 50,000 airline employees.

As part of its cost cutting on certain domestic flights, United Airlines has removed first-class tablecloths and reduced its selection of juices, union and airline officials said.

As for ordering a frappuchino on United Airlines -- that seems to be history, too -- as well as refresher towels and the second in-flight movie on certain domestic routes. In addition, the nation's second-largest airline has stopped handing out small individual water bottles for its first-class passengers.

"We looked at things we could remove that would least impact our passengers," said Chris Nardella, a United spokeswoman.

Last month United posted a $292 million second-quarter loss as the slump in business travel, labor costs and high fuel expenses took a toll on its financial performance.

Buffeted by the economic slowdown, U.S. airlines are struggling to revive profits any way they can as they suffer from the sharp drop-off in lucrative corporate travel. Carriers draw as much as two-thirds of their revenue from business travelers.

Airline companies are also digging for deeper discretionary spending cuts after recently signed union contracts burdened them with higher labor costs at the worst possible time.

Experts said in the current harsh climate large airlines are keeping a sharp eye on low-cost rivals such as Southwest Airlines and privately owned JetBlue, which offer "no frills" service at highly competitive prices.

"When you can't cut major costs, you do what you can with minor costs. You start working around the fringes," said George Hamlin, vice president of Global Aviation Associates, a Washington, D.C.-based aviation consulting firm.

"In good times, you see service features added, but in bad times they are taken way and some don't come back," he said.

Meals may be affected
At America West Holdings Corp., the parent of No. 8 U.S. carrier America West, flight attendants claimed they have been asked to serve cold meals instead of hot dinners on certain medium-haul flights. On some shorter flights, full meals had been cut from service, they said.

"It's directly related to the financial hemorrhaging that's going on," said William Lehman, a spokesman for America West's 2,500 flight attendants. "We've even been asked to be discreet with serving bottled water to hold down costs."

But America West officials said that they had not changed policy on hot meals, and had only requested employees use resources such as bottled water more efficiently.

Passengers on Northwest Airlines, the No. 4 U.S. airline, can no longer order special children's dinners and certain special diet meals.

"We found that most parents bring their own food for their infants because of concerns over allergies and because of their children's own preferences," said Kurt Ebenhoch, a Northwest spokesman.

Ebenhoch would not disclose how much the airline expects to save from the cuts. But he said only 1.5 percent of passengers asked for special meals and an even smaller percentage of those order the children's meals.

But aviation experts doubt whether such cutbacks can make much difference for airlines struggling with such huge quarterly losses.

"Removing the fruit plate doesn't save that much money," said Michael Boyd, an aviation industry consultant with the Boyd Group. "Airlines have squeezed out just about all the cost savings they can."

AlphaSigOU · 08-22-2001, 08:35 AM

Doesn't surprise me one bit. Considering that seats on the front of the bus are now being filled by elite frequent flyers who upgrade, FC is now nothing more than an extension of cattle-car class with at least a meal and wider seats. Don't get me wrong - if you've got the miles and/or the status level for an upgrade, go for it!!!

cyfler · 08-24-2001, 01:40 PM

very ironic that all this is happening right after a huge pilot pay hike.

08-21-2001, 07:11 PM	#1
DeltaFlot The Patriot Join Date: Jan 2001 Location: Laurel, MD Age: 35 Posts: 3,228	it figures Airlines scaling back inflight perks August 21, 2001 Posted: 10:13 a.m. EDT (1413 GMT) NEW YORK (Reuters) -- For frequent flyers the days of frappuchinos, refresher towels and free-flowing mineral water in the sky may be over. With fewer special meals and slimmer beverage menus, airline passengers are starting to feel the pinch as corporate bean-counters scurry to slash costs in the face of the steepest industry losses in more than a decade. "When the industry needs to tighten its belt, it cuts services, which affects the passengers," said Dawn Deeks, a spokeswoman for the Association of Flight Attendants, which represents about 50,000 airline employees. As part of its cost cutting on certain domestic flights, United Airlines has removed first-class tablecloths and reduced its selection of juices, union and airline officials said. As for ordering a frappuchino on United Airlines -- that seems to be history, too -- as well as refresher towels and the second in-flight movie on certain domestic routes. In addition, the nation's second-largest airline has stopped handing out small individual water bottles for its first-class passengers. "We looked at things we could remove that would least impact our passengers," said Chris Nardella, a United spokeswoman. Last month United posted a $292 million second-quarter loss as the slump in business travel, labor costs and high fuel expenses took a toll on its financial performance. Buffeted by the economic slowdown, U.S. airlines are struggling to revive profits any way they can as they suffer from the sharp drop-off in lucrative corporate travel. Carriers draw as much as two-thirds of their revenue from business travelers. Airline companies are also digging for deeper discretionary spending cuts after recently signed union contracts burdened them with higher labor costs at the worst possible time. Experts said in the current harsh climate large airlines are keeping a sharp eye on low-cost rivals such as Southwest Airlines and privately owned JetBlue, which offer "no frills" service at highly competitive prices. "When you can't cut major costs, you do what you can with minor costs. You start working around the fringes," said George Hamlin, vice president of Global Aviation Associates, a Washington, D.C.-based aviation consulting firm. "In good times, you see service features added, but in bad times they are taken way and some don't come back," he said. Meals may be affected At America West Holdings Corp., the parent of No. 8 U.S. carrier America West, flight attendants claimed they have been asked to serve cold meals instead of hot dinners on certain medium-haul flights. On some shorter flights, full meals had been cut from service, they said. "It's directly related to the financial hemorrhaging that's going on," said William Lehman, a spokesman for America West's 2,500 flight attendants. "We've even been asked to be discreet with serving bottled water to hold down costs." But America West officials said that they had not changed policy on hot meals, and had only requested employees use resources such as bottled water more efficiently. Passengers on Northwest Airlines, the No. 4 U.S. airline, can no longer order special children's dinners and certain special diet meals. "We found that most parents bring their own food for their infants because of concerns over allergies and because of their children's own preferences," said Kurt Ebenhoch, a Northwest spokesman. Ebenhoch would not disclose how much the airline expects to save from the cuts. But he said only 1.5 percent of passengers asked for special meals and an even smaller percentage of those order the children's meals. But aviation experts doubt whether such cutbacks can make much difference for airlines struggling with such huge quarterly losses. "Removing the fruit plate doesn't save that much money," said Michael Boyd, an aviation industry consultant with the Boyd Group. "Airlines have squeezed out just about all the cost savings they can." __________________ Febuary 15, 1898 December 7, 1941 June 8, 1967 September 11, 2001 Never Forget, Never Forgive If you kick the Tiger in the arse, you better be able to deal with the Tiger's teeth.

08-22-2001, 08:35 AM	#2
AlphaSigOU Insane Collector Join Date: Jul 1999 Location: Wylie, Texas Age: 43 Posts: 1,419	Doesn't surprise me one bit. Considering that seats on the front of the bus are now being filled by elite frequent flyers who upgrade, FC is now nothing more than an extension of cattle-car class with at least a meal and wider seats. Don't get me wrong - if you've got the miles and/or the status level for an upgrade, go for it!!! __________________ *Chuck Corway (AlphaSigOU)* *Causa latet vis est notissima* -- the cause is hidden, the results are well known. James Bond: "I'll take the full odds on the ten, two hundred on the hard way, the limit on all the numbers, two hundred and fifty on the eleven, thank you very much." Plenty O'Toole: "Hey! You've played this game before!" James Bond: "Just once." *REMEMBER THE ALAMO!!! REMEMBER PEARL HARBOR!!! REMEMBER SEPTEMBER 11!!!!*

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08-24-2001, 01:40 PM	#3
cyfler Senior Collector Join Date: Mar 2000 Location: Dallas, Texas USA Posts: 359	very ironic that all this is happening right after a huge pilot pay hike.