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How Can Air Travel Be Free?
By Chris Anderson 02.25.08 | 12:00 AM
Chart: Steven Leckart; Chart design: Nicholas Felton; Sources: Inviseomedia, Ryanair Feature Free! Why $0.00 Is the Future of Business
Every year, about 1.3 million passengers fly from London to Barcelona. A ticket on Dublin-based low-cost airline Ryanair is just $20 (10 pounds). Other routes are similarly cheap, and Ryanair's CEO has said he hopes to one day offer all seats on his flights for free (perhaps offset by in-air gambling, turning his planes into flying casinos). How can a flight across the English Channel be cheaper than the cab ride to your hotel?
A) Cut costs: Ryanair boards and disembarks passengers from the tarmac to trim gate fees. The airline also negotiates lower access fees from less-popular airports eager for traffic. B) Ramp up the ancillary fees: Ryanair charges for in-flight food and beverages; assesses extra fees for preboarding, checked baggage, and flying with an infant; collects a share of car rentals and hotel reservations booked through the Web site; charges marketers for in-flight advertising; and levies a credit-card handling fee for all ticket purchases. C) Offset losses with higher fares: On popular travel days, the same flight can cost more than $100.
How Can Air Travel Be Free?
By Chris Anderson 02.25.08 | 12:00 AM
Chart: Steven Leckart; Chart design: Nicholas Felton; Sources: Inviseomedia, Ryanair Feature Free! Why $0.00 Is the Future of Business
Every year, about 1.3 million passengers fly from London to Barcelona. A ticket on Dublin-based low-cost airline Ryanair is just $20 (10 pounds). Other routes are similarly cheap, and Ryanair's CEO has said he hopes to one day offer all seats on his flights for free (perhaps offset by in-air gambling, turning his planes into flying casinos). How can a flight across the English Channel be cheaper than the cab ride to your hotel?
A) Cut costs: Ryanair boards and disembarks passengers from the tarmac to trim gate fees. The airline also negotiates lower access fees from less-popular airports eager for traffic. B) Ramp up the ancillary fees: Ryanair charges for in-flight food and beverages; assesses extra fees for preboarding, checked baggage, and flying with an infant; collects a share of car rentals and hotel reservations booked through the Web site; charges marketers for in-flight advertising; and levies a credit-card handling fee for all ticket purchases. C) Offset losses with higher fares: On popular travel days, the same flight can cost more than $100.
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