On-board advertising

Ashley Milne-Tyte Jul 21, 2006
HTML EMBED:
COPY

On-board advertising

Ashley Milne-Tyte Jul 21, 2006
HTML EMBED:
COPY

TEXT OF STORY

TESS VIGELAND: You’ve probably heard US Airways plans to put ads on airsickness bags this fall. American is considering putting them on cups and napkins. Does any of this really do anything for the bottom line? Here’s Ashley Milne-Tyte.


ASHLEY MILNE-TYTE: US Airways says on-board advertising will bring in more than $10 million this year.

That’s small potatoes for a major airline, says Joe Brancatelli, who writes a Web site for business travelers. But the big six air carriers will take any revenue they can get.

JOE BRANCATELLI:“The actual business of transporting passengers the way the legacy carriers do it is at best marginally profitable and at worst the nightmare it’s been in the last six years.”

He doubts recent positive earnings reports for some legacy carriers will continue because of looming competition from Virgin America and Southwest.

If all else fails, he says, US carriers might follow the lead of Europe’s Ryan Air. The airline says one day it’ll get all its revenue from baggage charges and advertising.

I’m Ashley Milne-Tyte for Marketplace.

Marketplace is on a mission.

We believe Main Street matters as much as Wall Street, economic news is made relevant and real through human stories, and a touch of humor helps enliven topics you might typically find…well, dull.

Through the signature style that only Marketplace can deliver, we’re on a mission to raise the economic intelligence of the country—but we don’t do it alone. We count on listeners and readers like you to keep this public service free and accessible to all. Will you become a partner in our mission today?

Your donation is critical to the future of public service journalism. Support our work today – for as little as $5 – and help us keep making people smarter.