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Germanwings Makes Flying Cheaper (And Fancy)

By creating bundled packages that include different levels of legroom, snack options, and number of bags, the Lufthansa-owned airline makes traveling convenient and fancy-sounding.

Germanwings Makes Flying Cheaper (And Fancy)

How do you pitch something old as new? Lufthansa-owned budget airline Germanwings has an idea: Rather than charge fees—such as those for baggage check—the same way its competitors do, it bundles them into three new "individualized packages," as CEO Thomas Winkelmann calls them. (Mid-range "smart-fare," for example, includes legroom and a snack.) Typical fees, suddenly fancy.

So what’s the science of the spin?

V Value to consumer
C What the competition does
F Fancy-sounding phrases
T Customers’ tolerance for higher costs
P Profit potential

Alamy (napkin)

A version of this article appeared in the July/August 2013 issue of Fast Company magazine.