More Than Points

 From a recent US Airways press release:

“US Airways (NYSE:LCC) is returning complimentary beverages to the coach cabin on all US Airways and US Airways Express Flights beginning March 1st. Passengers will be offered free soda, juices, tea, water, and coffee in flight. Beer, wine, and cocktails will still be available for purchase for $7.”

You really have to wonder why US Airways would issue a press release just to highlight a service which is already provided by every other airline except theirs.  Perhaps it was issued to highlight the fact their other programs have really squeezed the dollars out of the frequent flyer.

“The company still expects to generate from $400 to $500 million in 2009 from a la carte items like checked baggage fees, Choice Seats, and our new blanket and pillow offering – the US Airways Power-Nap Sack ™.”

The press release’s target audience are the investors, but were I an investor, I’d question the strategy of increasing profits by sticking it to your best customers.  Seems to work well when everyone else is doing the same thing, but once the economy turns, flyers will jump ship as long as they have a choice.  Frequent flyer programs no longer have the stickiness they initially started with due to the devaluation of points.

My advice to airlines - stop playing to your investors and focus on your customers.  Smart investors realize customers are the ones paying the bills.