Chris Cantell Discusses Travel: Plane or bus, what will it be? by Claudia Sonea

The USA is still struggling to come back after the soaring oil price has spread like a plague infecting all its economy. The Congress approved the $700 billion bailout plan, but there are still some matters to be solved before it can be implemented, meantime all industries are trying to keep themselves afloat.
The airlines are trying to cope with the spicy price they have to pay for the fuel, but the higher prices have drifted away the passengers and the situation is worsening. As an alternative to the increases of fares they came up with deals with advertisers. Nothing new, you would say, but the difference is that if up to now there was only onboard advertisements, they are thinking to introduce them on a plane's overhead bin and even elsewhere if it brings them revenue. In Europe many airlines already use such types of advertisements, but in US airlines were reluctant and some still are to the idea of turning the airplane in a bus.
Currently you can find advertisements on the bottoms of security bins, in-flight television screens and boarding, napkins, beverages and magazines. A carrier's fleet size and demographics can influence the quantity of money an airline can get from advertisement, but it is a long-term trend. The problem remaining is whether the fuel price can actually be compensated by advertisement revenue. For now, they can only hope to help them get through this economic crisis which is considered to be the worse since the Great Depression.


related story: http://news.yahoo.com/s/ap_travel/20081016/ap_tr_ge/travel_brief_airlines_ad_revenue;_ylt=AirdfTkkTOHXVDa_QgJ9WRis0NUE

by Claudia Sonea for PocketNews (http://pocketnews.tv)

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