Airline fee backfires: skycaps win in Massachusetts court

by Tom Johansmeyer on

When American Airlines started to charge a $2 fee for curbside baggage check-in, the skycaps lost their tips. Passengers were accustomed to paying $2 or so, it seems, and weren’t going to amp up the cash flow just because the money was going into a different pocket. So, nine Logan Airport skycaps – current and former – just came into $325,000, thanks to the Massachusetts Supreme Judicial Court, which ruled based on a law intended to protect wages and tips.

American Airlines tried to get by on a technicality, saying eight of the nine skycaps were subcontractors (working for G2 Secure Staff) and thus weren’t protected. The court disagreed, favoring broader protection. But, it isn’t over yet. American Airlines, according to a report in USA Today, is evaluating “all of its legal options.”

Gadling Take FIVE: Week of July 25 – July 31.

by Jamie Rhein on

The end of July is here. This is also the last day of Gadling’s “Hotel Month” and time to vote for the winner of Gadling’s Perfect Road Trip contest. The voting for the contest goes through next week, but why wait?

With vacations in mind, here are posts that offer a mix of where to go, what not to miss and details worth knowing.

  • Luxury train travel is one of the most elegant ways to go across Australia. Kraig gives an overview of “The Ghan,” a wow factor passenger train that on August 4th will have been in service for 80 years.
  • A trip to New York City should include time to see “Lucy’s Legacy: The Hidden Treasures of Ethiopia.” Sean’s post on the exhibit is a thoughtful glimpse of what makes this a must-see happening. Later, head to the beach. Jeremy has five suggestions for beaches close to Manhattan.
  • Tired of the bar scene where it’s hard to hear a person talk or to relax? Katie offers a solution in her post on speakeasy lounges. Her favorite is The Violet Hour in Chicago.
  • To celebrate its 10th anniversary, Hostelworld is offering a contest. Alison has the scoop on how to win a golden ticket and the great prize it will get you.
  • If you need a reason to buy trip insurance, the statistics from Tom’s post on how airline cancellation fees mean big bucks for the airlines might be it.

Ryanair: (don’t) smoke if you got ’em!

by Tom Johansmeyer on

Ryanair isn’t the first carrier to allow “smokeless” cigarettes on their planes. These devices mimic the sensation of puffing, I’m told by a user, with a water vapor that is released. What makes the announcement distinctly “Ryanair” is that the devices are now being sold on its flights.

You can buy a pack of ten of these smokeless wonders for €6. To purchase the equivalent of a pack of cigs, you’re looking at $17.

So, it really is just another way for Ryanair to squeeze a few extra bucks out of each passenger, but at least the airline isn’t taking something away (like your seat or your pissing privileges.

[Thanks, @brycelongton]

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Airline cancellation fees worse than baggage fees

by Tom Johansmeyer on

Airlines rely on you to have minor and major personal crises. Everything from changed meeting dates to family emergencies generate around $2 billion in change and cancellation fees a year, according to the Department of Transportation. That’s pretty much twice the amount the airlines pull in from extra bag fees – a measure that’s already been lauded by the Wall Street set for its impact on the airlines’ finances. For American Airlines parent AMR, for example, change and cancellation penalties came to $116 million for the first quarter of the year, while baggage fees amounted to $108 million.

These penalties, lamented almost universally by passengers, upped airline passenger revenue by 3.2 percent in the United States. As usual, business travelers get screwed most (probably because they travel most. They paid the bulk of $527.6 million in first quarter change fees.

Even with fewer people climbing onto planes this year, increases in penalty amounts have led to a net gain in revenue for airlines from this type of fee. A number of the larger airlines upped their change fees from $100 to $150. JetBlue moved it from $40 to $100 – and saw first quarter fees surge 29 percent, from $25 million to $32.2 million, relative to the first quarter of 2008.

These change fees are actually pretty important. With the money they bring in, airlines can offer discounts elsewhere, financed by the extra income. And, they make it more attractive for passengers to buy full-fare tickets, that way they have a bit more flexibility. The more expensive tickets benefit the passenger … and of course, the airline.

American Airlines: open your wallet

by Tom Johansmeyer on

When you have to combat a brutal economic downturn, there are few choices. The airlines are cutting costs, cutting seats and looking for new sources of revenue. But, none of this compares to doubling down on the old revenue streams they’ve already devised! Why work so hard trying to come up with new ideas, when you already have old ones? So, get ready for bag-checking to get more expensive on American Airlines.

Your first bag is going to cost $20 for flights purchased after August 13, 2009 – for travel in the United States and territories (oh, and Canada). This is a 33 percent increase from the current $15. If you want to check a second bag, you’ll pay $30 instead of $25, an increase of 20 percent. If you have sufficient status on American, you won’t have to pay a cent for your two checked bags. Business-class and first-class passengers are in the clear, too, along with the proletarians in coach who paid full fares.