Friday, September 25, 2009

Venturing into a “No-Fly” Zone

According to The Associated Press, British Airways (BA) announced that with effect from October 7, 2009, it will start charging passengers who want to chose their seats in advance – 10 pounds for an economy class flight within Europe; 20 pounds for a long-haul economy flight and a whopping 50 pounds for an exit row seat. Even business-class passengers are not spared, having to pay 20 to 60 pounds depending on whether it is a short or long haul flight.

I expect BA to reverse its decision soon enough – it is plain dumb and reflects a desperation on its management’s part to raise revenues at all costs, even at the risk of losing customers. It is fascinating (and frightening) that BA’s management should even contemplate that their loyal customers will be happy to part with more of their hard earned money at a time of economic uncertainty, simply for the privilege of flying on BA.

I can understand charging more for seats based on the amount of leg-room or the degree a seat can recline (both clearly class related), even if those seats are in the same economy cabin – that is what most US airlines are already doing - but charging a hefty fee for the “privilege” of picking seats in the less desirable section of the cabin is clearly over-reaching.

All is well if enough passengers are prepared to fork out the extra dough to pick their own seats in advance, but what if that scenario does not play out? Imagine the anguish and the anger when a family with an infant are assigned seats that are spread around the cabin – who will tend to the child when he/she cries?. Imagine the annoyance when a couple leaving on a honeymoon are assigned seats that are far apart – great way to begin a life of togetherness. Imagine an elderly person susceptible to incontinence being assigned to a seat away from the aisle and the bathrooms.

Oh, sure, the gate-agents can reassign seats to accommodate those with special needs but should there be enough cases of those same special needs on a single flight, it will be a nightmare for the gate agents as each seat reassigned may raise a whole new set of problems and consequences. Expect take-off delays or having to arrive at the airport hours in advance to beg or fight for seat reassignments.

Thanks to the Internet, Airlines were able to push the task of seat selection to the consumers thereby cut down staffing at the gate and saving millions in payroll costs. By allowing passengers to pick their own seats, they also end up with customers who are generally happier, especially on flights that are not filled to the capacity. Passengers will almost always chose to spread themselves out (leaving the middle seats empty, etc) and their overall flying experience is enhanced with no further effort by the airline.

BA’s decision effectively reverses that and it will be interesting to watch what happens. I would very much doubt that they would be able to greatly raise their revenues because of that decision, especially on the short-haul flights and as long as there is stiff competition from other airlines. Without a doubt, BA’s competitors will use BA’s newly announced seat-selection-charge as a leverage to snap up all the disgruntled BA customers.

Clearly, the latest business decision by BA is questionable at best and destructive to its customer base and loyalty at worst. It is venturing into a “no-fly” zone as far as customer tolerance is concerned. Airline passengers are already bullied into cramped seats, checked baggage charges and no free-meal service on board. What’s next, charging for the ‘privilege’ of being able to breath on board a flight?

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