American Airlines: Buying the Friendly Skies?
Most retailers have finally gotten their heads around the idea that retail competition can come from anywhere on earth. It seems that competition may now also be a mile above the earth too. 
American Airlines recently announced that it will be testing a retail sales program aboard selected flights. Much of the merchandise is said to be similar to what’s currently found in the infamous Sky Mall catalog, known for its off-the-wall items such as video-recording sunglasses and spy-camera watches. Other proposed product offerings include things such as live performance tickets and limousine rides. Even Disney is considering selling park passes on select flights. With the help of on-board internet connectivity, passengers will be able to shop from their seats for many items. In other cases the airline will be looking to its flight attendants to take an active role in selling products and services.
We might have seen this coming based on the fact that airlines charge for almost everything, including pillows and headphones. The fact that American Airlines is now looking to expand into broader categories of merchandise isn’t surprising. They and their partners look at passengers as a captive (and sometimes oxygen deprived) audience who will likely buy things just to break the monotony. For their troubles, they hope to average an extra $15.00 or so per passenger.
Before I tell you what I think of the concept, let me first let me say that I consider myself to be very open-minded. When it comes to new retail concepts I firmly believe in pushing the boundaries of convention. In fact, I’m constantly looking for new trends that I think could shape the future of retail.
That said, I think this program will fail. Not because I disagree with the idea of being able to buy what we want, whenever and wherever we want it. It’s because the realities of air travel are virtually incompatible with successful retail.
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