Airline fees continue, necessary evil

by Tom Johansmeyer on

Yes, you’ve heard about this all year, and you’ll probably hear about it for a while to come. Airlines are still looking for ways to pull every dollar they can out of your wallets, but the reality is that they have no choice. Seven of the nine largest airlines in the United States had a rough time in August, making these measures more important than passengers might realize.

The second bag, according to an article in USA Today, remains the most popular fee target for airlines. Continental Airlines, US Airways and American Airlines recently announced that they are going to charge for this, and Hawaiian Airlines is going to charge passengers for the first checked bag on flights between islands beginning September 14, 2009.

I understand charging for checked luggage (the money has to come from somewhere), and I honestly don’t see charging for a second bag as a bad idea. Frankly, it can be pretty frustrating to stand in line behind someone who’s fumbling with more luggage than he or she can move along. The first bag? That’s a bit different. This fee could cause passengers to push the envelope with carry-ons, which is likely to trigger arguments with gate agents and flight attendants, tie up the boarding process and result in hefty doses of frustration for everyone else on the plane.

I’m more a fan of Southwest‘s new policy, which will put passengers at the front of the line – even ahead of frequent fliers and those paying premium fares – for a fee of $10 each way. Since the airline doesn’t assign seating, this small sum offers the chance to get the best seats on the plane. I’m not crazy about the notion that it comes at the expense of frequent flier comfort (alienating your best customers is rarely a good idea), but the price is low enough that these passengers would probably pay it anyway. For this perk, I’d definitely pay more than $10.

There’s money in extra fees, as we’ve discussed on Gadling in the past. Some analysts predict that these charges could be good for more than $2 billion a year for an industry that could definitely use it. The airlines need to be careful, though, as going to far could lead to disgruntled (and lost) customers.

Passengers, however, should be realistic. Fares are cheap. To make ends meet, airlines have been cutting flights and services, generally making the experience incredibly uncomfortable.

In fact, taking this approach to the extreme might be a good idea. Airlines could offer dirt-cheap prices for passengers who want nothing more than to get from one place to another. Then, if you want to enhance your experience – with a meal, cocktail or better seat – you can pay a little more. This à la carte approach would empower passengers to create their own experiences, ultimately improving customer service and airline responsiveness. To an extent, it’s already happening, but to make the strategy work, it would have to become part of a cohesive offer.

That said, airlines would have to be careful with their general cuts. Fewer flights, less legroom and degraded customer service affect everybody, and there’s no way to work improvements in based on price (with the exception of flying in business or first class, which involves a considerable price gap). Finding a middle ground could change both the airline industry and passenger perception of the flying experience.

Bag too big? Check with Congress

by Tom Johansmeyer on

Every carry-on could become a federal case, so to speak. Rep. Dan Lipinski, D-IL, has proposed legislation that would cap the size of each carry-on. Right now, airlines are left to their own devices, leading to a bit of confusion for fliers who use several carriers throughout the year. Since a de facto industry standard hasn’t emerged, Lipinski feels it’s a job for the folks in Washington.

Lipinski is quoted in USA Today as saying, “It’s clear if anything is going to be done, it’s going to take an act of Congress to do it.” The airlines aren’t enforcing the restrictions that they’ve enacted, he continues.

As with anything regarding Congress – and, for that matter, airlines – the public is divided. Supporters are glad to see a proposal that would keep oversized bags out of overhead spaces, seeing it as a safety measure or simply an increase in available space (they fill up quickly with large bags). Of course, on any flight, you’ll find people on the other side, passengers who refuse to check luggage and would cram a compact car into the overhead bin if they could.

Available space in the overhead compartments has become a problem recently. With airlines cutting flights in an effort to reduce costs, the remaining flights are becoming more crowded – as are the storage spaces.

The Air Transport Association, an industry trade group, doesn’t see overhead storage spaces as a matter for Congress. Instead, he believes it should be left to the airlines to decide.

Avoid high baggage fees – rent clothes from Zero Baggage

by Katie Hammel on

Airline baggage fees just keep going up, and there seems to be no end in sight. With few airlines left that don’t charge for checked bags, travelers who can’t manage to get everything they need into a carry-on bag could end up paying some hefty fees. One Canadian company has come up with a plan to help.

Zero Baggage promises to provide travelers with an “environmentally responsible, anxiety-free way of living and traveling”. How? By renting clothing. Travelers select the clothes they need to rent (either pre-worn or, for more money, brand new), Zero Baggage delivers them upon arrival, and the items are returned when no longer needed. Travelers have access to a wider variety of clothes, at less cost, and without having to pack a larger bag and pay checked-luggage fees.

Or at least, that’s the plan. The company says it will begin offering service in early 2010 in Toronto, Canada and Gold Coast, Australia.

As someone who has, over time, learned to get by with less and now rarely takes more than one carry-on for a trip of 2 weeks, I don’t think I would use the service. And even in an emergency (a fashion emergency), I’d probably just run out and buy something new. But it is an intriguing idea. What do you think?

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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.”

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.