Wolfe Of Wall Street To Airlines: 'Take As Much From The Spirit Business Model As Possible'
Analysts Hunter Keay, Jared Shojaian and Matt Morris at Wolfe Research offered 10 fee ideas that airlines can use, recommending to "take as much from the Spirit Airlines Incorporated (NASDAQ: SAVE) business model as possible."
While there are several "low hanging fruit" on what airlines can do with their current offerings, there are new fee ideas that they can impose, the analysts explained.
The 10 ideas were:
1. Charge for carry-on bags - applicable to all economy passengers.
2. Charge a carry-on bag fee to passengers who have purchased their tickets through a third-party online travel agency.
3. Charge a fee for gate checked bags if a passenger tries to cheat the system by attempting to sneak an oversized bag through security.
4. Currently, there is no first checked bag fee for flights across the Atlantic or the Pacific, which represents an opportunity, "especially with joint ventures in place."
5. Charge for seat assignment, with a window or aisle seat being priced higher than the middle seat.
6. Charge for soda instead of offering it free.
7. Charge a fee to "opt into receiving frequent flier points for travel."
8. A fee for printing boarding passes, encouraging passengers to print these at home.
9. Advertise on board as well as on their website.
10. Charge customers a fee for using the restroom.
"Just kidding…although the idea of giving away free booze and charging customers $20 to use the restroom is fun to think about," the analysts wrote.
Image credit: WestportWiki, Flickr
Latest Ratings for SAVE
|Jan 2017||Cowen & Co.||Downgrades||Outperform||Market Perform|
|Dec 2016||Barclays||Initiates Coverage On||Equal-Weight|
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