Comments on: Airlines feeding frenzy on fees… http://www.footnoted.org/earnings-quality/airlines-feeding-frenzy-on-fees/ Michelle Leder's guide to what's hiding in SEC filings Tue, 16 Mar 2010 22:19:36 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: KJ Rodgers http://www.footnoted.org/earnings-quality/airlines-feeding-frenzy-on-fees/comment-page-1/#comment-9056 KJ Rodgers Tue, 04 Aug 2009 19:58:07 +0000 http://www.footnoted.org/?p=4087#comment-9056 Airlines seem to be weighing to heavily on air passenger bags. They have increased and add restrictions to air travel that boost up their overall profit. How can they predict such chaos on their books. Perhaps the stimulus money will get to them when customers prefer the train or driving because of cost. Airlines seem to be weighing to heavily on air passenger bags. They have increased and add restrictions to air travel that boost up their overall profit. How can they predict such chaos on their books. Perhaps the stimulus money will get to them when customers prefer the train or driving because of cost.

]]> By: econobiker http://www.footnoted.org/earnings-quality/airlines-feeding-frenzy-on-fees/comment-page-1/#comment-9053 econobiker Tue, 04 Aug 2009 14:59:20 +0000 http://www.footnoted.org/?p=4087#comment-9053 I guess the airlines will do it until the phone companies eliminate their "government regulatory recovery fee" which these phone companiesy remind us "is not a tax but a fee to recover the cost of complying with government required mandates". Hmmm, why isn't this covered by the cost of the service? False advertising anyone? Now, contrary to what ed says above, what the airlines (and related airport security measures) have done is equalize the cost of air travel with land travel by rented auto for destinations 8 hours away or less. It is now far cheaper and less hassel to travel by car to these destinations since you often need a complete day budgeted to fly, transfer, fly, and rent a car. And that doesn't even include some sort of airline or weather delay which can bodge up airports unrealated to the delay... I guess the airlines will do it until the phone companies eliminate their “government regulatory recovery fee” which these phone companiesy remind us “is not a tax but a fee to recover the cost of complying with government required mandates”. Hmmm, why isn’t this covered by the cost of the service? False advertising anyone?

Now, contrary to what ed says above, what the airlines (and related airport security measures) have done is equalize the cost of air travel with land travel by rented auto for destinations 8 hours away or less. It is now far cheaper and less hassel to travel by car to these destinations since you often need a complete day budgeted to fly, transfer, fly, and rent a car. And that doesn’t even include some sort of airline or weather delay which can bodge up airports unrealated to the delay…

]]> By: Michelle Leder http://www.footnoted.org/earnings-quality/airlines-feeding-frenzy-on-fees/comment-page-1/#comment-9048 Michelle Leder Mon, 03 Aug 2009 20:19:27 +0000 http://www.footnoted.org/?p=4087#comment-9048 @NewHorizon: Thanks. I fixed that. Everyone needs an editor. @Ed: I think you miss the point of this post. It's more about earnings quality and the inability to keep growing revenues by coming up with new things to smack a fee on. @NewHorizon: Thanks. I fixed that. Everyone needs an editor.

@Ed: I think you miss the point of this post. It’s more about earnings quality and the inability to keep growing revenues by coming up with new things to smack a fee on.

]]> By: NewHorizon http://www.footnoted.org/earnings-quality/airlines-feeding-frenzy-on-fees/comment-page-1/#comment-9047 NewHorizon Mon, 03 Aug 2009 19:58:44 +0000 http://www.footnoted.org/?p=4087#comment-9047 Is the "Bolt Bus" link supposed to go to a page that mentions Bolt Bus somewhere? If so, it's not. Is the “Bolt Bus” link supposed to go to a page that mentions Bolt Bus somewhere? If so, it’s not.

]]> By: ed http://www.footnoted.org/earnings-quality/airlines-feeding-frenzy-on-fees/comment-page-1/#comment-9041 ed Sun, 02 Aug 2009 14:55:53 +0000 http://www.footnoted.org/?p=4087#comment-9041 why is it that people have expectations and demands of airlines beyond transportation and carrying oneself? I stay at the Ritz or Hyatt or Hilton and they charge me $48 a night to park even though my room is $300. Room service is marked up 2-3 times beyond normal. The ritz even has a resort service fee. I rent a car in San Francisco and with all the city taxes it amounts to 26 percent..that is unethical. Or I go see a movie and get charged $11 for admission and then $4 for popcorn and $5 dollars for a soda!!! THat is unethical and crossing the line and no one flinches.People expect and demand to fly cross country for 200 or 300 dollars and then pony up 300 for a hotrl and $50 for a steak. These are all service industries and what they have in common is pay to play. No one forces the parking or popcorn on me. The airlines are kind enough to allow one carry on and yet selfish people bring two or three hiden and do all sort of convulted things to avoid fees. The days of free lunch are over. Quit expecting things that cost money. You want to carry a refrigerator sized bag to tour Europe then pay for it. Demanding and having the audacity to believe it is unethical to charge for a service is the ultimate in arrogance. These are the same people who works for firms that I am sure bill hundreds of dollars an hour or provide a driver for their people at high rates. Get over your expectations with the airlines. You "beat them up long enough" now help them. Or go by car and take 6 times a s long. why is it that people have expectations and demands of airlines beyond transportation and carrying oneself? I stay at the Ritz or Hyatt or Hilton and they charge me $48 a night to park even though my room is $300. Room service is marked up 2-3 times beyond normal. The ritz even has a resort service fee. I rent a car in San Francisco and with all the city taxes it amounts to 26 percent..that is unethical. Or I go see a movie and get charged $11 for admission and then $4 for popcorn and $5 dollars for a soda!!! THat is unethical and crossing the line and no one flinches.People expect and demand to fly cross country for 200 or 300 dollars and then pony up 300 for a hotrl and $50 for a steak. These are all service industries and what they have in common is pay to play. No one forces the parking or popcorn on me. The airlines are kind enough to allow one carry on and yet selfish people bring two or three hiden and do all sort of convulted things to avoid fees.

The days of free lunch are over. Quit expecting things that cost money. You want to carry a refrigerator sized bag to tour Europe then pay for it. Demanding and having the audacity to believe it is unethical to charge for a service is the ultimate in arrogance. These are the same people who works for firms that I am sure bill hundreds of dollars an hour or provide a driver for their people at high rates.

Get over your expectations with the airlines. You “beat them up long enough” now help them. Or go by car and take 6 times a s long.

]]> By: Thomas Huynh http://www.footnoted.org/earnings-quality/airlines-feeding-frenzy-on-fees/comment-page-1/#comment-9039 Thomas Huynh Sat, 01 Aug 2009 14:29:22 +0000 http://www.footnoted.org/?p=4087#comment-9039 MICHELLE, Thanks for highlighting this problem and the excellent discussion. I have shared this with others at BusinessWeek's Business Exchange: http://bx.businessweek.com/delta-air-lines/airlines-feeding-frenzy-on-fees/12620846601039054973-3c8880032f57b7a8124da645711e13d4/ Your discussion hits home with me because I recently experienced it myself. You can read what happened here: http://forum.sonshi.com/showthread.php?s=&threadid=3130 RIC, I agree with you 100 percent. As a businessman I can clearly see Delta and other airlines are crossing a line and yes it is now an ethical issue. The reason why is sometimes travelers don't have any other option but to pay these hefty fees and airlines take advantage of that. Doesn't take much to grab market share if a new airline company (or an existing one) disrupts the industry with innovative ideas like, you know, one price and no surprise fees ... essentially treating the customer fairly. MICHELLE,

Thanks for highlighting this problem and the excellent discussion. I have shared this with others at BusinessWeek’s Business Exchange:

http://bx.businessweek.com/delta-air-lines/airlines-feeding-frenzy-on-fees/12620846601039054973-3c8880032f57b7a8124da645711e13d4/

Your discussion hits home with me because I recently experienced it myself. You can read what happened here:

http://forum.sonshi.com/showthread.php?s=&threadid=3130

RIC,

I agree with you 100 percent. As a businessman I can clearly see Delta and other airlines are crossing a line and yes it is now an ethical issue. The reason why is sometimes travelers don’t have any other option but to pay these hefty fees and airlines take advantage of that. Doesn’t take much to grab market share if a new airline company (or an existing one) disrupts the industry with innovative ideas like, you know, one price and no surprise fees … essentially treating the customer fairly.

]]> By: Ric Marshall http://www.footnoted.org/earnings-quality/airlines-feeding-frenzy-on-fees/comment-page-1/#comment-9035 Ric Marshall Fri, 31 Jul 2009 15:35:56 +0000 http://www.footnoted.org/?p=4087#comment-9035 This kind of reliance on unsustainable revenues that don't really have any direct relationship to the actual services provided is not only ethically challenged but almost certainly a strategic mistake of significant proportions. It is also a clear sign of failed oversight and risk management by these company's boards. There are any number of banks engaged in the same sort of folly, where management is often richly rewarded for upping revenues by raising overdraft and other usurious penalty fees. Is it any wonder these two industries are in so much trouble? This kind of reliance on unsustainable revenues that don’t really have any direct relationship to the actual services provided is not only ethically challenged but almost certainly a strategic mistake of significant proportions. It is also a clear sign of failed oversight and risk management by these company’s boards. There are any number of banks engaged in the same sort of folly, where management is often richly rewarded for upping revenues by raising overdraft and other usurious penalty fees. Is it any wonder these two industries are in so much trouble?

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