Technology

Badpuppy Gay Today

Tuesday, 02 February 1998

UNFRIENDLY SKIES

Air Travel Costs Skyrocket

By Patricia Conklin

 

During the past two years the moguls of airline travel have hiked their rates nearly forty percent, just in case you haven't noticed. Why? People are flying in record numbers with a seventeen percent passenger jump since the beginning of the decade.

This means that the airline industry is operating at 70 percent of its capacity. It also means that—as Wall Street predicts—the airline industry will haul in more cash (since 1994) than it has seen during the entirety of its first 50 years of existence. Demand for airline service is flying high. Supply isn't.

This year, predicts the industry, seat occupancy will increase by only 3.2 percent, falling right in line with current demands. Financial wizards expect 1998's business fares to rise by at least 6 percent. Hold on to your seats, its going to be a bumpy ride.

What are beleagured passengers getting in return? Inadequate supervision to prevent possible mechanical malfunctions, for one thing. It costs the moguls too much. And though United Airlines led the pack in the limiting of carry-on items and American thought up $100 fees charged clients for changing their discount tickets, airline executives, nevertheless, took home 1997 profits totaling nearly $5 billion.

Travel agents are slated to suffer too. The greediest airlines want passengers to make reservations directly through their offices thus eliminating commissions for middlepersons .

During the latter part of 1997 the largest airlines cut agent booking commissions from ten to eight percent. Many agents who give their clients honest opinions about airline behaviors are being driven out of business. Even so, air fares are rising while passengers systematically lose their holds on local advisors giving accurate information.

Public interest reports find that airline reservation departments are far less likely to quote lower rates such as those made available through travel agents.

The major carriers are opposed to reform—even though Congress is presently talking about encouraging competition at crowded airports. United Airlines' director of regulatory affairs insists that "Congress doesn't have a rational economic basis for doing this. It's political."

It matters little, say some, because smaller airlines generally get squeezed out of business. Several such companies are slated to declare themselves null and void before the end of this year. With them will disappear their cheaper fares.

In the meantime, passengers are getting less by paying more. Trips into the friendly skies are no longer among the best things in life which, as an old song says, are free.

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