Source: Xinhua Author: 07/16/2008
Subject Concerned: Airlines
Several major U.S. airlines will begin placing ads on boarding passes for customers who check-in from home in an effort to raise cash to offset soaring fuel costs. Customers can print the boarding passes without ads if they want.
Sojern Inc., which is selling the ads, said Delta Air Lines Inc. would begin using the ads for flights to Las Vegas and then on all other domestic destinations soon afterward. AMR Corp.'s American Airlines, Northwest Airlines, US Airways Group Inc., Continental Airlines Inc. and UAL Corp.'s United Airlines have also signed up and will begin using the ads in the months ahead, Sojern said.
The airlines own a minority stake in Sojern and will split revenue from the ads. None of the parties would say how much they expect to make. But Al Lenza, the vice president of distribution and e-commerce at Northwest Airlines Corp., said 40 percent of his airline's check-ins happen at its website, adding up to as many as 30 million customers a year.
"I think this is going to be responsible for many millions of dollars for each airline," he said.
The boarding-pass ads are only the latest effort by airlines to raise cash to help offset soaring fuel costs. Many have already cut jobs, reduced capacity and hiked fees on customers, including charging for a second checked bag.
Travelers who check-in from a home computer will see their boarding pass along with information for their destination including weather, restaurants, and attractions in the city to which they're flying. Sojern said it will limit the boarding pass to one printed page, the same as current ad-free boarding passes.
The airlines said they have worked to make sure they do not annoy customers with the ads. Josh Weiss, managing director for Delta's website and self-service, said that is why they included the option to not print the ads and made sure the boarding pass will load quickly on customers' computers.