Friday, October 17, 2008

Airlines Looking for Advertising On-board flights

As airlines and air passengers, from different points of view, grow weary of increased airfares and new and higher fees, some carriers in the U.S. are beginning to look at advertising on board as a means of bringing in new revenue in a way that doesn’t further burden their customers.

There are already advertisements placed on boarding passes, on the bottoms of security bins and on in-flight TV screens, and for years, beverages, magazines and napkins used in flight have carried ads as well.

Harlan Platt, a Northeastern University finance professor, has suggested that the kinds and numbers of on board advertisements could increase exponentially as airlines seek new ways of raise cash. The professor added that the ads are likely to show up on the bathroom door, the overhead bin, and on any other available space viewed by passengers.

Some carriers in other parts of the world are already using their on board space for ads. The Irish no-frills airline, Ryanair, solicits ads for placement on the exterior of its aircraft, and on overhead bins and tray tables, in the interior.

The space and type of ad considered ‘fair game’ for ad placement is a decision each carrier needs to make, but Platt is predicting that an increasing number of airlines will decide that this type of advertising is an appealing – and largely untapped – means of raising revenue without alienating customers.

Arizona-based US Airways has been the most aggressive in embracing on board advertising, and was the first major carrier in America to have ads placed on tray tables. It is now seeking advertisers to place ads on its airsickness bags

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