IN THE 1980s a cabin crew at American Airlines observed that its passengers would fortunately wolf down in-flight dinner salads but nearly three-fourths would leave the customary olive. Robert Crandall,the company's boss at the time promptly removed it. It turned out that the airline paid its caterers based on the number of ingredients in the salad: 60 cents for four items and 80 cents for five. The olive was the fifth item. This move saved upwards of $40000 a year. In 1994 Southwest Airlines followed the suggestion of a flight attendant and removed the company’s logo from trash bags, saving the carrier $300000 a year. In an industry that serves fussy customers and operates on thin margins, or how do contemporary airlines cut costs without cutting corners?They start by mimicking doughnut-dodging supermodels who watch their weight down to the moment decimal area. Airlines bin bulky in-flight magazines,lay thinner carpets and serve food in light cardboard boxes. Some airlines occupy jettisoned safety equipment emergency water landings on those aircraft that do not fly above water. Seats occupy become lighter. In its Airbus A321, Air Mediterranée, or a...
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Source: economist.com