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BUSINESSTuesday 2 February 2016
Airlines restore tiny perks, like pretzels, to pacify fliers
SCOTT MAYEROWITZ — the other big legacy about 67 movies and 138
AP Airlines Writer carrier — never removed TV shows for free.
NEW YORK (AP) — After 15 snacks, even during bank- “These are token invest-
years of near austerity, U.S. ruptcy. ments in the passenger ex-
airlines are restoring some American is also expand- perience that will not cost
small perks for passengers ing its complimentary en- airlines a lot of money but
crammed into coach. tertainment on domes- are small ways to make
Don’t expect ample leg- tic flights with in-seat TVs. passengers a little bit hap-
room or free checked Passengers will be able to pier,” says Henry Harte-
bags. But fliers will find im- choose from up to 40 mov- veldt, the founder of travel
proved snacks, a larger se- ies, 60 TV shows and 300 consultancy Atmosphere
lection of free movies and music albums. Research Group. “Ameri-
— on a few select routes Delta has taken a differ- can and United realized:
— the return of free meals. ent path, focusing more We don’t let other airlines
Monday, American Airlines on entertainment that pas- have an advantage on
became the latest carrier sengers can stream to their price, why let them have
to add something back. It own devices. It now offers one on pretzels.”q
announced the return of
free snacks in the econo- In this Jan. 25, 2016, file photo, a passenger talks on the phone U.S. stocks edge mostly
my section and more free as American Airlines jets sit parked at their gates at Washing- lower as energy prices
entertainment options on ton’s Ronald Reagan National Airport. plunge again
some aircraft.
American, which recently every perk imaginable on pretzels in 2011 — after its
merged with US Airways, domestic flights. Hot meals merger with United Airlines
hasn’t offered free snacks disappeared along with — it said the move would
since 2003. legroom, blankets and pil- save $2.5 million a year.
US Airways stripped pas- lows. Since then, mergers have
sengers of snacks in 2008. “It was really about surviv- created four mega-carriers
Following the Sept. 11, 2001 al,” says Fernand Fernan- that control more than 80
terrorist attacks and the dez, vice president of glob- percent of the domestic
subsequent recession, U.S. al marketing at American. market.
airlines removed almost When Continental Airlines They started charging $25
stopped giving out free for each checked suitcase.
cookies and mini bags of And more seats have been
crammed into planes to
maximize profits. Now the Specialist Michael Gagliano, foreground, works with traders at
industry is making record his post on the floor of the New York Stock Exchange, Monday,
profits. Feb. 1, 2016.
“What has changed ,” Fer-
nandez says, “is that the Associated Press
airlines have been able to
fix our core business and KEN SWEET less than 0.1 percent, to
be able to reinvest in our AP Business Writer 1,939.38 and the Nasdaq
customers.” NEW YORK (AP) — The stock composite rose 6.41 points,
That means new planes, market was able to recover or 0.1 percent, to 4,620.37.
larger overhead bins and from steep losses to close Stocks had been lower
for a long time, nicer first slightly lower on Monday most of the day after
class cabins. as investors looked past separate reports showed
Now a bit of that wealth is another drop in the price of manufacturing slowing last
trickling back to coach. oil and renewed concerns month in both the U.S. and
This month, American will about U.S. and Chinese China.
start offering Biscoff cook- economic growth. Oil and The reports initially caused
ies or pretzels to passen- gas companies remained a sell-off in commodities,
gers flying between New in the red. notably energy and indus-
York and San Francisco or The fact that utility and trial metals like copper. The
Los Angeles. By April, those other high-dividend stocks price of U.S. benchmark oil
snacks will expand to all were among the better plunged $2, or 5.9 percent,
other domestic routes. In performers should be seen to $31.62 a barrel in New
May, American will bring as a sign that many inves- York. Natural gas also fell
back full meal service tors still want to play it safe, about 6 percent.
for coach passengers be- traders said. But as the trading day drew
tween Dallas and Hawaii. The Dow Jones industrial to a close, investors began
“We know that we have average fell 17.12 points, to buy up utilities and other
customers who select our or 0.1 percent, to 16,449.18 dividend-paying stocks.
airline based on price and after being down roughly The Dow Jones utility index,
we’re really excited to of- 150 points earlier in the a collection of 15 utility
fer them a product that is day. The Standard & Poor’s companies, rose nearly 1
superior to choosing an 500 index fell 0.86 points, percent on Monday. q
ultra-low cost carrier,” Fer-
nandez says.
United recently an-
nounced the return of free
snacks on its flights starting
in February. Delta Air Lines
