Minneapolis (PRWEB) July 2, 2005
Have the large Airline carriers cost cutting measures finally reached the point of absurdity ?
While the Airlines continue to try to cut cost in large chunks through mechanic, pilot and cabin crew contract re-negotiations that can save hundreds of millions per year; they are also cutting passenger food, pillows and this past month Northwest Airlines announced the ultimate cost cutting plan -- the end of free pretzels.
Northwest lost nearly $460 Million last quarter amidst the continuing high price of fuel and rising Administive and labor costs, cutting free Pretzels for passengers would be amusing if it didn't represent such a strong symbol of the state of trouble these large airlines are in.
The large Airline carriers like Northwest, Delta, American, US Airways have huge overhead costs in adminstration, labor and operations and simply cannot keep on this price war with the budget airlines like Southwest and Jetblue's of the world.
The cost of business isn't going down any time soon and if billion dollar airlines have reached the point of taking away free pretzels, you just know the last option of higher airline ticket prices are just around the corner. They have to be to survive.
We can either bail the Airlines out in bankruptcy and watch as tens of thousands of employees lose jobs and benefits they have worked many years for or we can pay the true cost of our airline ticket. Time to take a round trip to reality, pass the pretzels please.
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