Wednesday, Dec. 10, 2003 | 9:31 a.m.
PHOENIX -- When air travelers flip down the tray tables on their America West Airlines flights, they'll be getting more than the usual peanuts or pretzels later this month. They'll also be getting advertising.
America West executives said Tuesday that they have begun selling tray table advertising, and the idea is already taking off.
America West sold advertising on all of its fleet of 143 planes through the first quarter of 2004, said Scott Kirby, America West executive vice president of sales and marketing.
Advertisers on board include Visa, Mercedes-Benz USA, The History Channel and Bank of America. Ads will start appearing Dec. 15.
The additional revenue from ads is a way to keep fares low, said Kirby.
"We believe that the future of the airline industry is offering low fares to customers," he said. "Tray table ads are very similar to buying meals aboard the aircraft. It seems to be a no-brainer for other airlines to follow suit once we've blazed the trail."
Kirby said the additional ad money is another way to keep fares low.
Ray Neidl, an analyst with Blaylock & Partners, said the advertising isn't likely to deliver a lot of extra revenue for the airline, but it will cost America West almost nothing to try.
"It will deliver a little extra revenue, but it's not a make or break type of situation," he said.
Neidl said the way the ads are presented will determine whether the experiment is worth following for other airlines.
"It's a question now of what the consumers' reaction will be," he said.
Kirby said the ads, which cover the tray table, will represent "first class, top of the line media."
The Tempe, Ariz.-based carrier was the first to experiment with in-flight food sales early this year and is close to an agreement to offer the service permanently. Other airlines quickly followed that idea.
In October, America West Holdings Corp. reported earning $32.9 million for the third quarter -- its second consecutive quarterly profit after more than two years of losses.
Tray table advertising is the brainchild of Nick Pajic, president of SkyMedia International of Las Vegas, who formerly published in-flight magazines for TWA.
"The response and feedback from the advertising universe has been phenomenal," he said. "We believe this will be one of the most powerful and influential medias."
America West is permitting only one advertiser per aircraft, and allowing ads only on tray tables -- at least to start, Kirby said.
Advertisers can buy 10 percent, 25 percent, half or all the airline's fleet with a minimum eight-week run at $3,300 a plane, Pajic said.
Advertisers say the airplane environment is perfect with its affluent, captive audience.
"We think it's a perfect way to reach customers," said Melissa Welch, vice president of partnership marketing at Bank of America.
Welch said Bank of America has purchased advertising on 50 planes and will feature its Flight Fund Visa credit card, which rewards users with frequent flyer miles, making airplane advertising perfect.
"Our key target market is people who fly on America West," she said.
There will be three different ads on each Bank of America plane. She said the ads are simple and will allude to in-flight magazines for more detail.
America West is the nation's eighth largest carrier with hubs in Phoenix and Las Vegas.
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