Allegiant Air president Andrew Levy announced he expects the carrier to “move in the direction” of charging passengers to stow carry-on bags in its overhead bins stating “the idea has a lot of merit” (USA Today, 10-Mar-2011). Currently Spirit Airlines is the only other US carrier to charge for this. Mr Levy reportedly stated carrying luggage on board “typically ends up delaying services and inconveniencing a lot of our customers”.
Allegiant to consider charging for carry-on baggage
You may also be interested in the following articles...
Spirit Airlines: touting solid financial position, but investors stay laser-focused on unit revenue
During the past year investor attention has pivoted away from Spirit’s steady balance sheet and strong cost base to the company’s deteriorating unit revenue – a scenario most US airlines find themselves dealing with as a result of lower fuel costs driving up capacity and eroding pricing traction.
Growing cash balances and sustaining favourable leverage remain crucial elements of Spirit’s business strategy. Keeping a stable cash position allows the airline to fund its higher than average growth, which continues to deliver strong margins according to Spirit's argument.
Its industry-leading cost performance is key to Spirit’s ability to sustain solid margins even as the US revenue environment remains weak. Although it faces some cost inflation in 2016, the airline remains focused on sustaining one of the best cost performances in the US airline business.
Bombardier C Series: record orders in 2016 as both variants finally enter service
The first commercial flight of the Bombardier CS300 on 14-Dec-2016, operated by airBaltic from Riga to Amsterdam, will be a major milestone for the Canadian manufacturer's new C Series aircraft programme. Three CS100 aircraft are already in service with SWISS, so the airBaltic flight will mean that both variants of the C Series are finally in commercial operation.
The programme is Bombardier's first wholly new aircraft development, aimed at the 100 to 150-seat market segment and offering advantages of fuel efficiency, cabin space, noise and emissions. Bombardier once targeted 2013 for entry into service, but has been dogged by problems and delays. In 2015, Bombardier seemed to have overstretched itself. The C Series received no new orders during the year and Bombardier was forced to seek investment from the Province of Québec to rescue the programme.
In 2016 the company has recovered to win a net 117 new orders, its highest annual total, bringing the programme total to 360. However, competition is cut-throat, with Airbus, Boeing and Embraer all having new developments of existing products in the same space as the C Series. Bombardier's breakthrough orders from Air Canada and Delta in 2016 required heavy price discounts.