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.

Southwest Airlines offers early boarding for $10

by Grant Martin on

Nobody likes being the last person to board an airplane. In addition to zero overhead bin space that’s left over, it’s inevitable that the only seat left on the aircraft is in the back next to the lav between two enormous, smelly, sleeping wrestlers.

Traditional airlines get around this by assigning seats at ticketing (and often separating select seats out for elites,) but Southwest Airlines has always had an “open seat” policy. That is, you board roughly in zones and pick whichever seat you want when you get onto the plane. Kind of like a bus. Depending on when you check in and a few other factors, you’re allowed to stand in a certain part of the line.

It’s a very democratic way of boarding, with a wide range of supporters and opponents.

If you’d really like the chance to pick your seat (or pick your seatmates,) however, you can now do it in a new way. For an extra ten bucks, Southwest will give you the opportunity to board early, freely stow your bags and grin at all of the other passengers as they struggle to find space for themselves.

With EarlyBird boarding, you’ll board with Rapid Rewards A List and Business Select customers.

You can read more about EarlyBird checkin at Southwest’s site. Now the real question is: would you pay $10 to board early?
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Southwest to offer wi-fi on all flights by 2010

by Katie Hammel on

To add to its cheap fares, no-extra-fees policy, and wise-cracking flight attendants, Southwest Airlines is giving us one more reason to love the low-cost carrier. Southwest says that, by the first quarter of 2010, wi-fi internet will be available on all flights.

Southwest and Row 44 have been testing the service on four planes since February of 2009. In a press release, Southwest Airlines’ Senior VP of Marketing and Revenue Management says Southwest is “very happy with both the technical performance of the system and the response of the Customers who have used it.”

Southwest is also testing various price points, so there’s no word yet on how much the service will cost.

Airlines and social media: dialogue waiting to happen

by Tom Johansmeyer on

Social media means that airlines just have another place where they can be raked over the coals. We complain to ticket agents. We complain to gate agents. We complain to customer service reps. And now, we can complain to the world, thanks to the likes of Twitter. I, for example, follow @DeltaSucks, though there hasn’t been any action on it in several months. I don’t just listen, though. When I’m stuck in an airport, I tweet relentlessly, and I know I’m not alone.

So, what’s an airline to do about this? And Facebook? And YouTube?

The attack is coming on all fronts, and an industry that’s been beaten up so severely and so often has few options. For now, the response is limited to tweeting fare deals, but obviously, that does little to address the continued stream of negative exposure to which the airlines are subjected.

When in doubt, the philosophy on social media complaints appears to be silence. Continental and American Airlines wouldn’t comment on recent tweets from disgruntled fliers, according to a Reuters report. They are monitoring and claim to be responding, but that’s about all. Billy Sanez, who manages social media for American’s parent, AMR, believes that these platforms make it easier to open a dialogue with passengers … but where is that dialogue?

When I got pissed off at JetBlue a year ago, I wrote about it on my personal blog and heard nothing from JetBlue. But, I did hear from other passengers … one of whom was afraid to say too much because he was still in transit and didn’t want to risk angering the airline. This level of paranoia may be extreme, but the implication is clear: passengers could find even a small blog, but airlines are squandering a chance to really engage the people who pay their bills.

Christi Day, who takes care of Twitter and Facebook for Southwest Airlines, told Reuters, “The main thing that our customers need to know is that we hear them.” But, again, there is no discussion of what the airline is doing about it.

Customers finally have a voice, and as we saw with “United Breaks Guitars,” it can get pretty loud. While the airlines may be listening, we’re still waiting for the second half of “dialogue” to happen.

Could Southwest Airlines buy Frontier?

by Grant Martin on

Southwest Airlines (WN) announced that it was putting a bid in for Frontier Airlines (F9) last week, a move that could significantly increase the airline’s market share in the west of the Mississippi. Frontier, the struggling Denver-based low-cost carrier that filed for bankruptcy last year, will be taking bids for the remainder of its company until Monday.

With the $114 million bid filed, Frontier will start sorting through contenders this week.

So what if it works out? Frontier would become part of Southwest airlines, Denver would lose one more competitor and hopefull the airlines and employees would merge from the bankrupt carrier to the most profitable carrier in the country.

Routes that Southwest takes over would suddenly be governed by the low-cost-carrier’s agressive pricing schema, meaning that cities currently covered by Frontier may see some more competitive prices to Southwest destinations. As for Denver, however, without WN competing with F9, prices could go up. At least they’ll still have plenty of non-stop routes available.

We should know more about whether Frontier accepts Southwest’s bid in the next few weeks.

Check out the well-made video from Denver NBC station 9NEWS after the jump.