US Airways cuts nonalcoholic drink charge
US Airways Group Inc. will resume serving free soda and other nonalcoholic drinks Sunday, the airline’s CEO said in an e-mail to employees.
The move reverses a six-month policy that charged passengers in coach $2 per drink on domestic flights. First-class and international passengers received free drinks.
Passengers will be offered free soda, juice, tea, water and coffee in flight. Beer, wine, and cocktails will still be available for purchase for $7.
“We know customers don’t buy an airline ticket based on whether or not they will get a free soda onboard, but with US Airways being the only large network carrier to charge for drinks, we are at a disadvantage,” Chief Executive Doug Parker said in an e-mail to employees.
The carrier will still charge for checking baggage, blankets and pillows, a move the carrier says will generate $400 million to $500 million this year. Parker didn’t say how much the airline garnered from charging for drinks.
Parker said the airline’s policy of charging for nonalcoholic drinks detracted from the airline’s improvements in on-time performance and baggage handling.
But he said the recession has sparked a need for the airline to try programs that include charging for individual items.
“Moving to an a la carte model has helped us build an airline that can withstand the uncontrollable factors that influence our industry and we need to keep trying new programs, like a-la-carte pricing,” Parker said. “Frankly, it would have been a bigger risk for us not to have tried charging for drinks because innovation and a new business model are desperately needed.”
source : Business journal
