Cost-cutting at CSA
British Airlines will start charging passengers 10-60 pounds for advanced seat reservations. ČSA hasn't yet sunk so low in the nickel-and-diming department, but it is charging 2,000 miles per quarter to mail out a frequent-flier statement. Airlines are in a vicious circle of declining sales and declining service. Miroslav Zámečník ČSA's new supervisory board said his job is all about cutting costs. No one has any illusions about trying to increase ČSA's sales in the short term, he said. Instead of just cutting the airline's own costs, though, ČSA might also look at lowering customer costs. Why can't ČSA use its weight at Prague Airport to push for lower airport taxes, parking fees and food costs? If the rich Airport takes over ČSA, it will have to use its fee revenue to cross-subsidize the airline anyway. It'd be better to give more of the money back to passengers now. More of them would actually buy tickets.
Glossary of difficult words
to sink - to lapse or fall into a particular state or condition;vicious circle - a situation in which the apparent solution to one problem creates a new problem and increases the difficulty of solving the original problem;
to nickel and dime someone - to charge small additional amounts for something;
2,000 miles - the point fee is not charged for statements sent by email;
to cross-subsidize - to use revenue from one activity to fund another, less-profitable activity.