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(SFGate)   Airlines ring in the new year with more routes, more seats, more fees   (sfgate.com) divider line 25
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1339 clicks; posted to Business » on 27 Dec 2013 at 10:30 AM (30 weeks ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



25 Comments   (+0 »)
   
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2013-12-27 09:16:40 AM
If they ever work out teleportation, airlines will be deader than the Pony Express
 
2013-12-27 10:41:12 AM
Significantly reduced comfort for everyone!
 
2013-12-27 11:03:26 AM
assets.sbnation.com
 
2013-12-27 11:06:23 AM
"We find it incomprehensible that some airlines believe a lack of irritating fees, imposed on low-value customers, creates shareholder wealth," Keay wrote, boosting his target for Spirit's share price to $58. "We advise avoiding those stocks, all else equal."

Am I reading this correctly? Is he actually saying, "fark the poors, shareholder value is the only thing that matters."?
 
2013-12-27 12:14:08 PM

ajgeek: "We find it incomprehensible that some airlines believe a lack of irritating fees, imposed on low-value customers, creates shareholder wealth," Keay wrote, boosting his target for Spirit's share price to $58. "We advise avoiding those stocks, all else equal."

Am I reading this correctly? Is he actually saying, "fark the poors, shareholder value is the only thing that matters."?


Did you ever think these companies cared about anything other than shareholder value? I assume you landed on this planet this morning.
Some people will be priced out of traveling and that's just how it goes.
 
2013-12-27 12:15:33 PM
I'm shocked, I tell you. Shocked.

/My monocle!
 
2013-12-27 12:46:40 PM

DubyaHater: ajgeek: "We find it incomprehensible that some airlines believe a lack of irritating fees, imposed on low-value customers, creates shareholder wealth," Keay wrote, boosting his target for Spirit's share price to $58. "We advise avoiding those stocks, all else equal."

Am I reading this correctly? Is he actually saying, "fark the poors, shareholder value is the only thing that matters."?

Did you ever think these companies cared about anything other than shareholder value? I assume you landed on this planet this morning.
Some people will be priced out of traveling and that's just how it goes.


I'm going to start a company to be nice to people and expect no return on it.  Oh yeah, they have those, they're called charities.
 
2013-12-27 12:56:14 PM

EvilEgg: DubyaHater: ajgeek: "We find it incomprehensible that some airlines believe a lack of irritating fees, imposed on low-value customers, creates shareholder wealth," Keay wrote, boosting his target for Spirit's share price to $58. "We advise avoiding those stocks, all else equal."

Am I reading this correctly? Is he actually saying, "fark the poors, shareholder value is the only thing that matters."?

Did you ever think these companies cared about anything other than shareholder value? I assume you landed on this planet this morning.
Some people will be priced out of traveling and that's just how it goes.

I'm going to start a company to be nice to people and expect no return on it.  Oh yeah, they have those, they're called charities.


Yeah, but this quote is from an investment analyst, and the entirety of the sentence, minus the word "lack", suggests something that seems like common sense- punishing your customer base with fees seen as unnecessary and obnoxious add-ons to the cost of a ticket, will piss people off enough to not fly the airline, reducing revenues and in turn, share price. This makes sense, in my head.

The inclusion of the word "lack" is what's throwing everyone, as it seems to directly contradict what we think *should* be the case, and what would sound like good investment advice.

Instead, it's the direct opposite- kinda like someone saying "I could care less about this."
 
2013-12-27 12:56:44 PM

DubyaHater: ajgeek: "We find it incomprehensible that some airlines believe a lack of irritating fees, imposed on low-value customers, creates shareholder wealth," Keay wrote, boosting his target for Spirit's share price to $58. "We advise avoiding those stocks, all else equal."

Am I reading this correctly? Is he actually saying, "fark the poors, shareholder value is the only thing that matters."?

Did you ever think these companies cared about anything other than shareholder value? I assume you landed on this planet this morning.
Some people will be priced out of traveling and that's just how it goes.


No, my point was the guy actually said it! This is one of those things you never, ever, ever ever, EVER, say.
 
2013-12-27 12:57:47 PM

ajgeek: "We find it incomprehensible that some airlines believe a lack of irritating fees, imposed on low-value customers, creates shareholder wealth," Keay wrote, boosting his target for Spirit's share price to $58. "We advise avoiding those stocks, all else equal."

Am I reading this correctly? Is he actually saying, "fark the poors, shareholder value is the only thing that matters."?


He's an analyst. His job is to tell prospective investors which stocks are likely to be good investments. So from that perspective, yes - shareholder value is the only thing that matters.

Now, whether those fees are better at creating shareholder value than a lack of fees would be, that's another question. But his job isn't to determine what airline practices are most consumer-friendly. His job is to point the people with money to places where they can make more of it.
 
2013-12-27 01:21:59 PM
Reason #3 why I got my pilot certificate (the TSA was #2, #1 is because I like to fly)

They're not adding value, just profit.
 
2013-12-27 02:04:48 PM
FAIL?  Is OBVIOUS Tag on break this week?
 
2013-12-27 02:29:56 PM
Virgin Atlantic will assess a $41 fee each way on long-haul flights for coach-class passengers who wish to select a seat more than 24 hours before departure.


That's just...wow. I mean i *get* fees for bags, and for access to the exit row, or what have you. There is actually a cost to the airline they need to recover for those things. But i just dont see the justification as to a $40 fee for picking your seat in advance. I mean, wouldn't the airlines want to know where everyone will be seating?
 
2013-12-27 02:40:47 PM

ajgeek: "We find it incomprehensible that some airlines believe a lack of irritating fees, imposed on low-value customers, creates shareholder wealth," Keay wrote, boosting his target for Spirit's share price to $58. "We advise avoiding those stocks, all else equal."

Am I reading this correctly? Is he actually saying, "fark the poors, shareholder value is the only thing that matters."?


Yes.    He's not a consumer advocate, he's a stock analyst.He's saying that from a pure profit prospective, charging extra fees is what makes money, and therefore what creates dividends for shareholders.  So he is advising potential investors not to invest in airlines that don't charge extra fees, because shareholders won't make as much money as they would investing in airlines that do charge the extra fees.

Of course, I also think he's not taking in to account the fact that the extra fees drive customers away.  But there is a certain percentage of the population that is just going to have to fly, so I guess those airlines that charge the fees will get at least some money.
 
2013-12-27 02:56:10 PM

LemSkroob: Virgin Atlantic will assess a $41 fee each way on long-haul flights for coach-class passengers who wish to select a seat more than 24 hours before departure.


That's just...wow. I mean i *get* fees for bags, and for access to the exit row, or what have you. There is actually a cost to the airline they need to recover for those things. But i just dont see the justification as to a $40 fee for picking your seat in advance. I mean, wouldn't the airlines want to know where everyone will be seating?


I think it makes sense, if you're an asshole airline. There is almost no cost to offer this option, and I'm sure some people will use it to ensure they get exit rows, etc.

For me, it just means less to choose from when I finally get to check in.
 
2013-12-27 03:05:56 PM

LemSkroob: Virgin Atlantic will assess a $41 fee each way on long-haul flights for coach-class passengers who wish to select a seat more than 24 hours before departure.


That's just...wow. I mean i *get* fees for bags, and for access to the exit row, or what have you. There is actually a cost to the airline they need to recover for those things. But i just dont see the justification as to a $40 fee for picking your seat in advance. I mean, wouldn't the airlines want to know where everyone will be seating?


Exit rows don't cost an airline any more than other seats.
 
2013-12-27 03:18:55 PM
I'm surprised that instead of raising fees airlines haven't lowered the weight limits so that more bags will be classified as oversize or overweight.
 
2013-12-27 03:54:52 PM

ajgeek: "We find it incomprehensible that some airlines believe a lack of irritating fees, imposed on low-value customers, creates shareholder wealth," Keay wrote, boosting his target for Spirit's share price to $58. "We advise avoiding those stocks, all else equal."

Am I reading this correctly? Is he actually saying, "fark the poors customer, shareholder value is the only thing that matters."?


FTFY
Looting your customer rather than serving them has become a business trend. Short sighted but true.

runwiz: I'm surprised that instead of raising fees airlines haven't lowered the weight limits so that more bags will be classified as oversize or overweight.


SSSHHHH!
Actually, I'm sure that will come along soon.

LemSkroob: Virgin Atlantic will assess a $41 fee each way on long-haul flights for coach-class passengers who wish to select a seat more than 24 hours before departure.


That's just...wow. I mean i *get* fees for bags, and for access to the exit row, or what have you. There is actually a cost to the airline they need to recover for those things. But i just dont see the justification as to a $40 fee for picking your seat in advance. I mean, wouldn't the airlines want to know where everyone will be seating?


They don't care where you sit. People have an aversion to the middle seat. They are making money off of that aversion.
 
2013-12-27 04:06:18 PM

mcreadyblue: LemSkroob: Virgin Atlantic will assess a $41 fee each way on long-haul flights for coach-class passengers who wish to select a seat more than 24 hours before departure.


That's just...wow. I mean i *get* fees for bags, and for access to the exit row, or what have you. There is actually a cost to the airline they need to recover for those things. But i just dont see the justification as to a $40 fee for picking your seat in advance. I mean, wouldn't the airlines want to know where everyone will be seating?

Exit rows don't cost an airline any more than other seats.


While they are required to have them by law, it is extra space that a passenger receives that others do not.

As I was saying, at least that is a tangible thing that you can attach a $ cost to.
 
2013-12-27 05:01:04 PM

LemSkroob: mcreadyblue: LemSkroob: Virgin Atlantic will assess a $41 fee each way on long-haul flights for coach-class passengers who wish to select a seat more than 24 hours before departure.


That's just...wow. I mean i *get* fees for bags, and for access to the exit row, or what have you. There is actually a cost to the airline they need to recover for those things. But i just dont see the justification as to a $40 fee for picking your seat in advance. I mean, wouldn't the airlines want to know where everyone will be seating?

Exit rows don't cost an airline any more than other seats.

While they are required to have them by law, it is extra space that a passenger receives that others do not.

As I was saying, at least that is a tangible thing that you can attach a $ cost to.


I'm wondering if the FAA prevents them from charging more for an exit row seat since it's a safety issue. They NEED someone in that seat in case of an emergency.
 
2013-12-27 05:17:40 PM

Mike Chewbacca: I'm wondering if the FAA prevents them from charging more for an exit row seat since it's a safety issue. They NEED someone in that seat in case of an emergency.


Some do charge for exit rows.

If they dont sell, they might let someone on the plane upgrade to make sure someone is sitting there if its an issue.
 
2013-12-27 06:44:13 PM

LemSkroob: Mike Chewbacca: I'm wondering if the FAA prevents them from charging more for an exit row seat since it's a safety issue. They NEED someone in that seat in case of an emergency.

Some do charge for exit rows.

If they dont sell, they might let someone on the plane upgrade to make sure someone is sitting there if its an issue.


And those that don't generally reserve them for those with status.
 
2013-12-27 09:38:46 PM

inglixthemad: Reason #3 why I got my pilot certificate (the TSA was #2, #1 is because I like to fly)

They're not adding value, just profit.


Your solution sounds practical, sustainable and convenient with all those flight plans, preflight checks, maintenance,etc. ,etc., etc.

/I'm sure your Cessna has quite the record on the Kessel Run
//parsecs aren't a measure of time.
 
2013-12-27 09:45:55 PM

ajgeek: "We find it incomprehensible that some airlines believe a lack of irritating fees, imposed on low-value customers, creates shareholder wealth," Keay wrote, boosting his target for Spirit's share price to $58. "We advise avoiding those stocks, all else equal."

Am I reading this correctly? Is he actually saying, "fark the poors, shareholder value is the only thing that matters."?


I see you're new to Spirit Airlines. They live on those absurd fees.
 
2013-12-28 02:32:43 PM

Mrtraveler01: I see you're new to Spirit Airlines. They live on those absurd fees.


Ah, Spirit Airlines, the people who brought us the $100 fee for a carry-on bag. When I search for fares the first thing I do is filter out Spirit. Even if they end up being $20 cheaper after adding on all the fees, it isn't worth the hassle and the way they cut corners it's probably just a matter of time before they're the next ValuJet.
 
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