Small cities are making fee concessions and, in some cases paying airlines to retain airline service. Airlines predict a drop in Labor Day air traffic. British Airlines is planning an advertising push to increase revenues.
Small cities pay to keep air travel
With airlines cutting back flights, and smaller cities losing government subsidies and seeing less flights coming in, they are hoping that paying the airlines will help.
The cities, like Myrtle Beach, S.C., and Duluth, Minn., have tried various strategies to keep their lifeline to the outside world.
Myrtle Beach, for example, has reduced landing fees, terminal rents and other fees. In addition, the city’s convention and visitors bureau plans to spend $8 million — in money raised from private businesses and in state tourism promotion money — on a marketing campaign to attract more visitors, particularly golfers from northern states, said Bradley Dean, president and chief executive of the area’s visitors bureau.
Labor Day air travel seen falling according to trade group
The Air Transport Association (ATA) says that fewer travelers are expected to fly, although with airlines cutting back flights, planes will remain full.
“Economic uncertainty and persistently high energy prices for consumers and businesses continue to impact demand for air travel,” ATA Chief Executive James May said in a statement.
The airline industry has been battered this year by declining demand amid the economic recession. Carriers, however, have been rapidly downsizing since last year, so planes have remained full even as ridership falls.
British Airways set to sell ad space on website and boarding passes
Following Ryanair’s lead, British Airways is now putting ads everywhere, including on boarding passes.
British Airways is trying to come up with a way to increase profit by becoming the first major European scheduled airline to sell advertising space on its own boarding passes. British Airways, which has already posted a £106 million net loss for the three months ending June 30, said that it is now actively seeking advertisers who wish to buy space on its boarding cards, as well as on its website.
(Photo: superciliousness/Flickr Creative Commons)
