This Adjustment Could Change Everything for Low-Cost Airlines
London design firm Seymourpowell may be about to alter the balance of power in the global airline industry, Fool contributor Tim Beyers says in the following video.
How so? The firm has created what it calls Morph, a bench of three potential seats that are customizable ahead of flight time. In its blog post announcing the design, Seymourpowell described Morph as a "concept economy seat" that would allow passengers to pay for the type of space and fit they'd prefer when flying.
Tim says it's a game-changing idea for cheap U.S. airlines whose primary edge is in keeping costs low. The introducion of a premium seat that flyers could pay up for, regardless of cabin, could create a more profitable mix per flight.
Both Alaska Air Group and Southwest Airlines could use the boost. Alaska's passenger revenue per available seat mile (PRASM) fell 1.2% year over year, to $0.13, in the third quarter. Southwest did better, earning 5.1% more on higher fares in Q3, yet that may not last. Southwest doesn't operate a first-class cabin, and is therefore limited in how much it can charge its most frequent passengers. Adjustable seats could alter the equation, Tim says.
Do you agree? Would you pay up for more space via an adjustable seat were that an option? Please watch the video to get Tim's full take and then leave a comment to let us know what you think.
A whole new altitude for your portfolio
Did you know that even airline stocks can make you rich? Look at Southwest, which has multiplied more than 100 times over the past 35 years. Such is the greatest lesson in investing: buying to hold is the best way to build meaningful, long-term wealth. Which businesses should you invest in for similar returns today? The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.
The article This Adjustment Could Change Everything for Low-Cost Airlines originally appeared on Fool.com.Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim's web home and portfolio holdings or connect with him on Google+, Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.