Airlines / Baggage Fees / Behavioral Economics / Consumer Behavior / Economic Model / Unbundling / Uncategorized

Unbundling the Airline – Charging for Water, Coffee and Soda

In August 2008 US Airways unbundled its in-flight service and started charging for soft-drinks. It charged $2 for soda and bottled water and $1 for coffee and tea. After six months, US Airways decided to stop the practice. US Airways took pride in its unbundled pricing model. The service did bring in revenue according to … Continue reading