Airlines trying to lighten the load
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International airlines are reducing the weight of in-flight magazines and cutlery and jettisoning entertainment services as they try to reduce fuel bills.
Speaking in Cairo at a ceremony welcoming Egypt Air into the Star Alliance of airlines, senior executives of the member airlines said the price of oil was having such an impact on earnings that they were trying "every means necessary" to reduce loads and save costs.
Singapore Airlines chief executive Chew Choon Seng said fuel now comprised up to 50 percent of its operating costs, pain that, he said, was being felt across the airline sector.
"We have been assessing the weight of magazines, knives and forks as well as including things like … minimising (the weight of) water we have on board," he said. "Those sorts of measures are helpful but only at the margin … I would say that it is without doubt the No. 1 concern for all carriers at the moment."
Michael Whitaker, senior vice-president of United Airlines, said US carriers were struggling more than their European counterparts because of the weakening US currency. He said United had removed seats to reduce weight.
Dennis Tierney, alliances director with US Airways, said the airline had been forced to keep prices relatively low to maintain load factors but in-flight services would start to disappear from domestic flights.
"Fuel is the story," he said "We are trying every means necessary to cut costs."
But Mark Erwin, senior vice-president of Continental Airlines, said services would be the last thing to disappear on his airline.
"Continental believes in delivering a higher level of service," he said "One of the reasons we receive such high marks from the consumer is that we focus on blankets and pillows and in-flight entertainment and meals at meal times and priority offerings for our elite customers.
"We believe you have to invest in the consumer to keep them."
- © Fairfax NZ News
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