On-board advertising

Ashley Milne-Tyte Jul 21, 2006
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On-board advertising

Ashley Milne-Tyte Jul 21, 2006
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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.

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