Tue, Oct 13, 2009
Baggage Check, Other Fees Not Deterring Flying Public
Fees for checked baggage, seat selection, and even
pillows do not seem to be preventing people from buying airline
tickets, which means airlines are likely to hang on to those fees
as a critical revenue stream, analysts say.
US Airways, for example, reports taking in nearly $100 million
just from checked bag fees, according to the Dallas Morning News.
"I think these fees are here, and they're here to stay," US Airways
Inc. executive Andrew Nocella said last week. As an industry,
analysts say airlines collected $2.3 billion in fees in the first
half of 2009.
The fees were born of skyrocketing fuel prices last summer, but
massive losses due to the shrinking economy are expected give
airlines a reason to sustain them. Aviation consultant Michael Boyd
told the paper "If the customer will pay it and not attack you for
doing it, why wouldn't it stay? It sounds a little bit harsh, but
it is true – they're paying it, and they're not attacking
you."
The International Air Transport
Association said airline losses, which have totaled in the billions
this year, would be much higher without the additional fees. One
airline that has not started charging for checked bags is
Southwest, but they have begun charging an additional fee for
transporting an unaccompanied minor, as well as pets in the
passenger cabin and an option for priority boarding.
American Airlines executive Will Ris said the airline industry
is being hammered for what he describes as providing a service at a
loss. "The irony is the perception is that we're ripping people off
when the reality is we're giving the service at below costs," Ris
said. "That has to end."
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