Continental’s move, which equals a 16 percent reduction in its capacity, had been rumored in industry circles on Wednesday. The details came in a message to employees from Continental’s chief executive Lawrence W. Kellner and its president, Jeffrey A. Smisek.
“The airline industry is in a crisis,” the two executives said in the message to employees. “Its business model doesn’t work with the current price of fuel and the existing level of capacity in the marketplace. We need to make changes in response.”
It is about time that these airlines realize that charging for tickets is a horribly outdated business model. I’m looking forward to the airlines switching their business model to a pure CPC advertising model, where you click on a flight attendant when you see an ad you like, or perhaps a freemium model where you board the plane for free and can pay halfway through the flight if you like the service. If you choose not to pay, you must complete the rest of the flight while seated in the lavatory, or perhaps they eject you with a parachute (which is also sold onboard for a nominal additional charge).