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US Airways is Happy That Nobody is Buying Drinks

By Brett Snyder | Sep 23, 2008

It seems somewhat counter intuitive to hear that US Airways added a revenue generating fee and now they’re happy that nobody is taking advantage of it, right? But that’s exactly what’s happening with the new charge for drinks onboard. When you think about this further, it’s actually pretty easy to see why they’re not complaining at all.

On the surface, it would seem that the airlines keep adding fees so that they can improve their ancillary revenue, but there’s another benefit in the form of cost reductions. Let’s stick with the beverage fee that US Airways implemented to illustrate my point.

Traditionally, the flight attendants roll the cart by every seat asking what each person wants to drink. Unless the passengers are sleeping, there’s a good chance that most will order something. Now with this new charge, people have to really want a drink to be willing to pay for it. US Airways is finding that few people are actually willing to pay for it, so that should be bad, right? Nope.

Less demand for drinks means they need to stock fewer items. This costs less and it reduces weight onboard. As Scott Kirby, US Airways President, says, “Logjams in the aisles, significant trash collection, lines at the restrooms — all those things are largely gone on US Airways because fewer people are buying and drinking sodas.”

Now, Kirby probably is overstating his case when he says the flight attendants love selling this stuff, but it doesn’t seem like it should be that much of a burden. And at least one passenger, PlaneBuzz’s Holly Hegeman, likes it enough to sing the praises of the policy. Since US Airways has made it clear that they are pursuing a bare bones, no-frills strategy, this seems like a very smart move.

In addition to writing BNET's travel industry blog, Brett Snyder also pens the award-winning consumer travel blog, Cranky Flier. You can follow him on Twitter under the name crankyflier.

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  •  
    1

    susanncsdo

    09/23/08 | Report as spam

    RE: US Airways is Happy That Nobody is Buying Drinks

    Unless you have a medical condition or were just rescued
    from wandering the Sahara for weeks, there's no reason
    you shouldn't be able to endure a 1-2 hour flight without
    a beverage. Always seemed to me to be more trouble
    than it was worth. I think it's a great idea.

  •  
    2

    Nicholas Barnard

    09/23/08 | Report as spam

    RE: US Airways is Happy That Nobody is Buying Drinks

    What I want to know when will they actually ditch the
    carts and just start doing the service on trays? Sure
    you'll still have the weight of the drinks, but you'll lose
    the weight of the cart itself.

    And while I'm at it why haven't airlines moved to
    fountain beverages? It always seemed to me that it
    would be more efficient both from a time perspective
    and from a weight perspective.

    Sure there is that whole pressurized CO2 thing that is
    an issue, but I'm sure that could be intelligently
    surmounted with good engineering.

  •  
    3

    brett snyder

    09/25/08 | Report as spam

    RE: US Airways is Happy That Nobody is Buying Drinks

    @Nicholas - That's a good question. It would make sense that if the number of drinks being served is close to zero, you'd think you'd want to get rid of the weight of those carts. I suppose you really don't need it.

    As for fountain drinks, I'd think that servicing them is the hardest part. It's easy to just board a pallet of drinks, but if you have to actually change out and service the drink machine, it would slow things down.

  •  
    4

    Nicholas Barnard

    09/25/08 | Report as spam

    RE: US Airways is Happy That Nobody is Buying Drinks

    The solution for the fountain drink thing is simple, make
    the whole thing removable, and put on two per plane.
    This way if one fails in flight you've got the other, and if
    it fails you just remove it and put a new one on. Just like
    tagging something INOP.

    I think the real savings is reducing or eliminating the
    catering runs. Plus the cost savings from buying syrup
    versus cans has to be quite huge..

  •  
    5

    brett snyder

    09/26/08 | Report as spam

    RE: US Airways is Happy That Nobody is Buying Drinks

    @Nicholas - Well, I think it's a safe bet that someone will try to tackle this if it can save some money. But I'm not sure how much it would save. If you have a fountain, you need to have a bunch of water in there to mix with the syrup. The cost savings could lie in the ability to avoid catering every flight, but that means you'll need to carry enough water for multiple flights and that's extra weight.

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