Retail giant Costco, which has become one of America’s most successful companies by reacting adroitly to consumer trends, may be latching onto another commercial bonanza with its decision to start its own low-cost carrier, Kirkland Air.
“Airlines today don’t want to be in aviation, they want to be in high-volume merchandising, from snack foods to leg room; and who does that better than we do?” said Bob Payne, Costco’s newly appointed vice president for airline development.
Payne said that while airlines now recognize that flying is the least of it, they have not proven all that sophisticated, despite what the public might think, when it comes to squeezing charges out of customers for items they didn’t even know they needed, especially in oversize amounts.
“That’s where we have the competitive advantage,” Payne said. “For cost efficiencies we’ll be operating a fleet of our own Kirkland 425 jetliners, manufactured right at our corporate headquarters; but our main thrust will be in selling high-volume ancillary products that traditional airlines haven’t even considered, such as cabin oxygen.”
Payne said his research indicates that the flying public should react well to the Kirkland Air approach, especially when they learn that they can save substantially by buying single-destination tickets in quantities large enough to last an average-size family up to seven years.
“That should be enough to offset the backlash anticipated from the realization that in order to fly with us you’ll have to become a Kirkland Air Gold Star Club member, for an annual fee of $495,” Payne said.
Travel humor writer Bob Payne, who is editor in chief of BobCarriesOn.com, also works part time as an airline analyst for the snack food industry.
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