US Airways increases baggage fees

Here we go again. On the heels of greatly improved profits, US Airways has announced an increase of up to 80% on the charge for overweight bags.

In addition to the base price for checked bags of $25 for the first bag and $35 for the second, the additional fees for overweight bags are increasing. Overweight bags that weigh between 50 and 70 pounds will see the price increase from $50 to $90. Supersized bags that weigh more than 70 pounds will go from $100 to a whopping $175.

Will other airlines follow US Air’s lead? Probably. In January 2010, Continental matched Delta’s baggage fee increase and American matched United’s fees signaling a green light for others to follow.

At the time, travel expert Arthur Frommer noted “Any hope that the big airlines might move more gently in adopting such fees has been lost”. Looks like he was right.

Increases in baggage fees might not be all air travelers have to worry about on luggage either. The FAA, burdened by reduced demand for air travel since 9-11 expects an estimated $25 billion decline in revenue over the next six years according to a government report released last week.MarketWatch.com reports “Revenues declined early in the decade because of a series of largely unforeseen events, including the Sept. 11, 2001, terrorist attacks, that reduced the demand for air travel, resulting in a steep decline in airline industry revenue,” wrote Gerald Dillingham, the director of civil aviation studies at the GAO.

The new US Air fees go into effect, and it says this on their website, “if you bought a ticket on or after February 1 for travel on or after March 1, 2011. They may want to take another look at that policy and/or ask cruise lines about the wisdom of making a retroactive service fee.

Six cruise lines ended up having to refund $40 million in fuel surcharge fees charged to cruise passengers after they had booked their cruises. I’m not offering legal advice here but anyone who booked between February 1st and 9th might have a case.

Regardless, it’s probably time to take another good long look at packing light.

Flickr photo by Deanster1983

Ryanair blasted for “childish” payment system

Rarely does a week go by without some kind of news blasting Ryanair for something the low cost carrier did to annoy their customers.

This time, it all revolves around a silly payment method implemented by Ryanair. For years, the airline has been advertising its ultra low cost fares without mentioning additional fees or surcharges.

New regulations in the UK mean Ryanair has to include credit card payment fees in all its advertising materials – but sneaky Ryanair found a way around this rule.

By creating one free payment method, the airline can get away with advertising its tickets, without mentioning a GBP5 surcharge for each passenger that uses a credit card.

The “free” payment method is only available with a specific Mastercard prepaid card. All other payment methods are hit with the surcharge – for every single passenger, even if the tickets are all purchased on the same card.

The UK Office of Fair Trading investigated the matter, and called it “puerile and childish” – though I doubt Ryanair cares what anyone else thinks. The law is on their side, and they found a smart way around it. Sure, it may be a smart way that once again penalizes its customers, but at the end of the day, their fares are still substantially lower than any other European carrier.