Like Jeff Goldblum famously said in Jurassic Park, “life finds a way.” Similarly, Airlines continue to find a way to screw their customers. An article in Sunday’s New York Times by Nelson D. Schwartz outlines how the alluring pull of Wall Street has become the defining factor for why airlines forego giving amenities and general courtesy to their customers. Frankly, they don’t care what your experience was like as long as you give them money.
Harvard Business School historian Nancy Koehn joined Boston Public Radio to talk about how airlines like American and United are beholden to the money of Wall Street, not their customers, and what this means for their future.
According to the Times, American Airlines used to consider on-time arrivals, lost baggage and consumer complaints into how much an executive received as a bonus. Their bonuses are now based solely on revenue. This has caused the airlines to be more concerned with their profit, which in turn means being charged for having a carry-on, frequently overbooking flights and other discomforts.
These type of additional fees, known as ancillary revenue, have grown in popularity as the business model for airlines continues to shift.
“Fees to go to the restroom, that may be coming,” said Koehn.
To hear Harvard Historian Nancy Koehn's full interview with Boston Public Radio, click on the audio player above.
