American Airlines: "Soda is on us"
American Airlines was charging $1 for soda and juice trying to increase profits. They almost went bankrupt in 2003, so they are trying new ways of making a buck. Drinks and other perks such as food and pillows used to be free but that is changing. They offered snack boxes and sandwiches for a small fee, but are learning their passengers don't like the idea. The airline got feedback from the test saying passengers would much rather receive the drinks for free and pay for pillows and blankets. Some airlines are even axing the free pretzels to make up for the soaring fuel prices. American Airlines was hoping to be like a movie theater and make a profit on the sales of snacks and drinks, but passengers would rather have free drinks and pay for food and pillow-and-blanket sets.
Maybe if American Airlines offers free drinks that will increase the amount of passengers. The more passengers the airline can generate the more money they will bring in.
1 comment:
I can understand that American Airlines has been backed into a corner with profits going down and bankruptcy not too far from where they stand. Still, I do believe that listening to its customers will help turn around the loss in their profits. If they would be willing to listen to their customers' suggestions, then perhaps more people would be attracted to their services and would want to fly with them more often. With the increase in numbers of interested customers, American Airlines could actually begin to earn more profit and be able to pay off extra expenses. It is true that some decisions in the business world can be risky. Still, when you are backed up against the wall, like American Airlines has been lately, there is very little variance left in the choices you have right in front of you.
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