Long gone are the days of “customer-first” service. Airlines are trimming corners off an already small margin in efforts to cut costs and increase profit. It has even gone so far as to bring up the idea of “standing seats” for short-haul flights. If that doesn’t raise eyebrows, I’m not sure what would; since when has flight travel become so 
engrossed in profits, revenue, and costs so much that the word “luxury” isn’t even associated with flight travel anymore. A recent article from the Globe and Mail reported Westjet was to add a new charge for passengers’ first baggage.
In the market of flight travel, a razor-thin margin is warranted because of its competition. Fixed costs are considerably large compare to other industries that have other solutions in producing their products/services. Companies are desperately finding ways to at least even out these costs, and the only way seems to be through diminished prices, and augmented sales.
But are these changes justified? Perhaps the passenger make the choice of how to fly. A recent article lines that there are passengers that do not mind bearing discomfort for a lower priced ticket. Airlines have added classes the past year or so offering seats like Economy Premium as opposed to the normal Economy Class. Essentially the “Premium” holds its name compared to the basic Economy class due to extra leg-room and more on-board amenities like better snacks and more in-flight T.V. channels. Despite the added comfort, many more passengers still choose the less comfortable, but cheaper option.
Operations management is aware of these thoughts and are using them to a logistical advantage. Their best strategy to cut costs and gain profit is through satisfying customer demands: the price of a ticket. Knowing these facts, airlines are opting to risk quality and branding over foreseeable success.
Researched Links:
http://www.cnn.com/2014/07/10/travel/standing-cabin-plane-study/
http://www.theglobeandmail.com/report-on-business/westjet-to-charge-travellers-for-first-checked-bag/article20598212/comments/
five major schemers towards the investors. Meanwhile, their responsibility to each other to maximize profit has not gone unnoticed, as ismade apparent with over $7-million in profit after