YLW Connection - Summer 2009 - (Page 9)

THE RIGHT MODEL FOR THE TIMES? | B Y R O BERT FINE, Manager of Economic Development Central Okanagan Regional District T he speed at which the economy has been changing has impacted every major sector, including the airline industry. In the past year alone, the industry has reduced capacity by an estimated seven percent worldwide, while the cost of jet fuel dropped by 57 percent in the same time frame. In spite of the impacts, Kelowna International Airport posted its sixth year of record growth with passenger traffic increasing two per cent from 1.36 million in 2007 to 1.39 million in 2008. Airport management is working hard as it looks to the future and the development of a new airport master plan, improvements to the security area, a new international arrivals area, and new airport services. For the past few years, airlines around the world have introduced new operating models to change the way revenue is generated. Airlines operating out of Kelowna have bucked the trend and not charged to check bags. This has been the exception in the US. Revenue results announced last month, show just how well airlines have been doing in replacing revenue loss as a result of higher fuel, fewer passengers, and fewer flights. U.S. airlines collected $1.15 billion in baggage fees in 2008, according to the Department of Transportation. To generate more revenue, airlines began imposing luggage-check fees in early 2008, which typically range from $15 to $25 per bag. American Airlines collected the most, $278 million, followed by US Airways ($187 million), Delta ($177 million), United ($133 million), Northwest, which merged with Delta in 2008 ($121 million) and Continental ($97 million). Airlines will continue to identify innovative ways to increase revenue. No finer example of this can be found than that of Ryanair. According to Ryanair’s website, it was Europe’s original low fares airline and For the past few years, airlines around the world have introduced new operating models to change the way revenue is generated. is still Europe’s largest low fares carrier. In 2009, Ryanair will carry 58 million passengers on more than 800 low-fare routes across 26 European countries. The airline has 31 European bases and by the end of this month will operate a fleet of 195 new Boeing 737-800NG aircraft with firm orders for an additional 84 new aircraft. It currently employs a team of 5,961 people representing over 25 nationalities. I flew the airline about two years ago knowing little about it. It could best be described as a flying bus, a basic mode of air transportation to get from one place to another inexpensively. While the $4 cup of tea did not surprise me, the push to buy lottery tickets did. Another way the airline profits are through the sale of food and drink on board. With such charges representing over 22 percent of Ryanair’s revenue, the airline has been accused by a British consumer group as having the highest priced airline food on the planet. Last month Ryanair announced that later this year it will become the first airline in the world to offer full cellular services – at $6 a minute. In an ever changing world, it will be interesting to see if Canadian airlines follow suit with a growth model built on the Ryanair approach. If they do, you might want to have a toonie on you - Ryanair is also reported to be contemplating charging for a washroom visit. Yikes. n We Print, Ship & More! Kelowna BC 1865 Dilworth Dr T: 250.860.6215 Store40@theupsstore.ca Westbank BC 22 - 2475 Dobbin Rd T: 250.768.2012 Store142@theupsstore.ca Vernon BC 3104 - 30th Ave T: 250.549.3020 Store104@theupsstore.ca Kelowna BC 9 - 3151 Lakeshore Rd T: 250.860.3334 Store238@theupsstore.ca Penticton BC 113 - 437 Martin St T: 250.493.6245 Store78@theupsstore.ca Printing • Shipping • Secure Mailbox Rentals • And More! SUMMER 2009 9

Table of Contents for the Digital Edition of YLW Connection - Summer 2009

YLW Connection - Summer 2009
Contents
Airport Services
Volunteers Key to Customer Service Experience at YLW
Vancouver- Games Ready
The Right Model for the Right Times?
What's in a Name
Passenger Demand Dictates Growth at YLW
The Shuswap
History of the Flight Attendant
Golfer's Paradise
Kelowna is Ripe with Surprises
Okanagan Housing Market Full of Activity
YLW News
Trivia & Games

YLW Connection - Summer 2009

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