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Ancillary revenues: Airlines to earn USD58 billion in 2010; CAPA to review Asia Pacific prospects

Analysis

The LCC sector has triggered an ancillary revenue (merchandising) revolution, with airlines worldwide expected to generate USD58 billion in ancillaries this year. Baggage fees are one of the fast growing items in a portfolio developed largely by LCCs that also includes seat allocation, inflight services and products, related travel products (including insurance, car hire and accommodation), inflight advertising, airport lounges access and increasingly diverse opportunities including concert tickets, mobile phone credits and more.

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