Source: San Francisco Chronicle
Author: David Lazarus

Maybe there's something about finally coming out of bankruptcy that makes a company, well, a little goofy.

Delta Air Lines emerged from 19 months of Chapter 11 proceedings last week and promptly announced a pair of "distinctive and enjoyable" new services for passengers.

It's going to charge extra for seat-back movies. And cocktails.

He also said it may not be too far-fetched to imagine a point where coach passengers encounter slots on toilet doors requiring you to deposit a quarter for in-flight relief.

"We're thrilled to provide our customers with these two innovative new offerings," Joanne Smith, Delta's senior vice president for in-flight service, said in a statement.

Innovative? Everyone charges for liquor. And JetBlue, among others, already charges extra for movies at your seat.

Where's the thrill in that?

In reality, Delta's move highlights a trend that frequent fliers are all too aware of -- airlines tacking on additional fees for amenities and services that once came as part of the package.

Travel experts say it will only get worse.

"The extreme will be when they put you on a scale and tell you what your fuel charge will be," said Bob Harrell, a travel industry consultant in New York. "I can see that happening at some point."

He also said it may not be too far-fetched to imagine a point where coach passengers encounter slots on toilet doors requiring you to deposit a quarter for in-flight relief.

"The airlines are going to experiment with all options to gather revenue," Harrell said. "If they think they can get away with it, they're going to do it."

The U.S. Department of Transportation said last month that even though flights are more crowded than ever, average airfares in the fourth quarter hit $378, the highest level since 2000.

At the same time, carriers have introduced a variety of fees to reach even deeper into customers' pockets. Some, like Northwest Airlines, are charging as much as $15 for coach passengers to reserve a more leg-friendly aisle seat.

Others, like American Airlines, are charging up to $15 for changes to seat assignments that aren't made online.

In Delta's case, the nation's third-largest airline emerged from bankruptcy with plans for new paint jobs on its jets and a new corporate logo -- and with about 6,000 fewer employees.

"This is a great day in Delta's history, a day that would not have been possible without the hard work and sacrifice of Delta people around the world," said Gerald Grinstein, the company's chief exec.

"Delta is now a fierce competitor in a tough industry," he said, "and we are confident that we will reclaim our rightful place as an industry leader."

As part of that effort, the airline will offer coach passengers HBO movies and shows at a rate of $5 per film and $2 for everything else (business- and first-class passengers will watch for free).

The airline will also train its flight attendants to mix special cocktails, such as a "Mile High Passion Fruit Mojito," dreamed up by Rande Gerber, operator of a chain of nightclubs and husband of model Cindy Crawford. The cocktails will cost domestic coach passengers $5 each.

Joan Vincenz, Delta's managing director of product marketing, told me that all Delta jets eventually will be equipped with seat-back systems that allow people to watch up to 24 channels of free TV.

If you want to watch a movie, though, you'll pay extra.

"If we wanted to put just one movie on, we could do that for free," Vincenz said. "But we wanted to give more choices."

She said the premium-movie service was developed as a result of extensive research.

"We know that our customers really care about entertainment," Vincenz said. "We also know that they want to be stylish. That's how we started the mojitos."

Robert Mann, an airline industry consultant in New York, called Delta's claims of innovation a "very clumsy" attempt at justifying what virtually all carriers are doing -- finding ways to charge more for less.

"Everybody's doing it," he said. "There's more and more stuff to pay for."

Mann said some smaller carriers, like Spirit Airlines, keep fares at rock-bottom levels by charging extra for almost everything, including checking a suitcase. But the larger carriers know that they'll lose business over the long run by adopting similar tactics.

That's why, Mann said, U.S. airlines are keeping a close eye on Air Canada, which has introduced a tiered system that provides travelers with more options depending on how much they're willing to pay.

For example, a coach passenger will be charged $40 to make itinerary changes up to two hours prior to departure; a business-class passenger can do it for free.

"You can buy almost any option you want," Mann said. "That's another way of saying they charge for services they once did for free. It's all in the marketing."

Michael Boyd, an airline industry analyst in Colorado, agreed with the sentiment that carriers will charge for anything they think they can get away with. He also said the leading airlines typically move in lockstep.

"If I'm United and I see American getting away with something, I'm going to do it, too," he said. "Definitely."

Boyd, like the other experts I spoke with, said air travelers should expect flying to become even more uncomfortable and more costly with each "innovation" unveiled by the industry.

"It's mass transit and it's a thin-margin business," he said. "So you have to make it up on volume. That means narrower seats and it means less leg room."

If airlines could get away with making passengers stand for the duration of a flight, would they?

Boyd didn't hesitate. "If they could, yes," he said. "But there are safety considerations."

Thank goodness for small favors.