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Advertising on Airline Passenger Trays Original URL & Video September 26, 2005 When air travelers flip down the tray tables on their America West Airlines flights, they'll be getting more than the usual peanuts or pretzels later this month. They'll also be getting advertising. Advertisers on board include Visa, Mercedes-Benz USA, The History Channel and Bank of America. America West, which is in the process of merging with US Airways, says the additional revenue will help keep fares low. Ray Neidl, an analyst with Blaylock & Partners, said the advertising isn't likely to deliver a lot of extra revenue for the airline, but it will cost America West almost nothing to try. "It will deliver a little extra revenue, but it's not a make or break type of situation," he said. |
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Neidl said the way the ads are presented will determine whether the experiment is worth following for other airlines. "It's a question now of what the consumers' reaction will be," he said. The Tempe, Ariz.-based carrier was the first to experiment with in-flight food sales early this year and is close to an agreement to offer the service permanently. Other airlines quickly followed that idea. In October, America West Holdings Corp. reported earning $32.9 million for the third quarter -- its second consecutive quarterly profit after more than two years of losses. Tray table advertising is the brainchild of Nick Pajic, president of SkyMedia International, who formerly published in-flight magazines for TWA. "The response and feedback from the advertising universe has been phenomenal," he said. "We believe this will be one of the most powerful and influential medias." America West is permitting only one advertiser per aircraft, and allowing ads only on tray tables -- at least to start, Kirby said. |
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