Airlines Adding Even More Extra Fees

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JOSHUA FREED | 06/19/09 02:52 PM | AP

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MINNEAPOLIS — As if charging $15 to check a bag weren't enough, two airlines are asking for $5 more beginning this summer if you pay at the check-in counter _ a fee on top of a fee.

Of course, you could always pay your baggage fee from home. The airlines call it the "online discount."

If airlines can get away with that, what's next? Rather than raise fares in the middle of a recession, they're piling on fees to make money _ fees for bags, fees to get through the line faster, even fees for certain seats.

United Airlines alone expects to rake in more than $1 billion this year in fees ranging from baggage to accelerated frequent-flier awards. That's more than 5 percent of its revenue.

The most likely new fees are those that some airline, somewhere, has tried. Fees usually originate with one or two airlines, and competitors watch to see whether passengers accept them or revolt. For instance:

_ US Airways and United are hitting passengers up for $5 to pay their baggage fees at the airport instead of online. United implemented the fee June 10, while US Airways will put it into effect July 9.

_ If you want to select an exit row seat on AirTran and enjoy the extra legroom, expect to cough up $20.

_ Allegiant Air, a smaller national discount airline, charges a $13.50 "convenience fee" for online purchases, even though most other carriers encourage purchases direct from their Web site.

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_ European discounter Ryanair charges for something everyone has to do if they want to fly: check in. It's 5 euros, or about $6.75, to check in online, double for passengers who pay at the airport. Ryanair plans to eliminate airport check-in desks.

_ Spanish airline Vueling charges a fee to pick a seat. Any seat at all. A "basic" seat behind the wing runs 3 euros. For 30 euros, travelers can choose an aisle or window seat and guarantee that the middle seat will remain empty.

"They need to chill out with those," said a frustrated Jim Engineer, a public relations executive waiting for a flight out of New York's LaGuardia. "Charging for a glass of water and seats just translates into unhappy customers."

As recently as last year, most fliers only came across a fee if they checked three bags or sent a minor child across the country. Most people, most of the time, traveled fee-free.

But that began to change last spring. Spiking jet fuel prices and passenger resistances to higher fares started airlines looking around the cabin for things they could charge extra for.

Passengers are finding it's a lot easier for the airlines to add the fees than to take them away.

"They're going to keep nudging them up until they run into market resistance," said Ed Perkins, a contributing editor at the Web site Smarter Travel.

That's what happened at US Airways. It tried for seven months to charge for soda and water but gave up in March after no other airlines took up the idea. And Delta scaled back a plan to charge $50 to check a second bag on all international flights. Instead, the charge will apply only on flights to Europe.

United has been a leader in finding ways to charge passengers separately for things. Some are for perks coach travelers used to get for free, like food. Others are new services altogether, like United's door-to-door luggage service via FedEx.

Airlines say fees are part of "a la carte" pricing that allows them to hold the line on fares. Rather than charge higher fares to everyone, they say, passengers can pick and choose the extras they want to pay for.

Ideas for fees don't come out of thin air. Last month in Miami most of the big U.S. carriers and many overseas airlines attended a conference devoted to a-la-carte pricing and fees. (Motto, next to a cartoon of an airliner: "Discovering the flying store.")

Some fees stretch the imagination: The CEO of European discount carrier Ryanair has floated the idea of charging for lavatory use and sick bags. But even he hasn't gone ahead with what appears to have been a publicity-seeking gambit, and no other carrier has suggested such a charge.

Still, there's no rule against such a fee in the U.S., according to the Department of Transportation and the Federal Aviation Administration.

Delta Air Lines Inc. and AirTran Holdings Inc. say they have no plans to tack a fee on to carry-on bags, an idea that would almost certainly annoy passengers just getting used to paying for checked baggage.

It would also put airline workers in the awkward position of deciding whether that bag on your arm is a big purse, presumably free, or a lumpy suitcase. Already, fees for checked bags have made finding space in the overhead bin tougher.

And even if carry-on bags stay free, United is already offering a "Premier Line" check-in for $25. It allows fliers to get through check-in and security faster and board earlier.

That guarantees some of that precious overhead space _ so in a way, it's like a carry-on fee, said Jay Sorensen, president of IdeaWorks Co., an airline consultant who has written a guidebook for airlines seeking "ancillary revenue," the industry term for fees and extra services such as airline credit cards.

Matthew J. Bennett, CEO of FirstClassFlyer.com, said he thinks travelers in the front of the plane will remain immune from the nickle-and-dime fees airlines aim at coach passengers.

For those in coach, though, "What they are going to charge for in the future is anything that's not bolted down."

"They've already gotten sufficient revenue from them," Bennett said. "All they're saying to coach-class travelers is 'We really haven't gotten enough from you.'"

___

AP Business Writer Samantha Bomkamp in New York contributed to this report.

MINNEAPOLIS — As if charging $15 to check a bag weren't enough, two airlines are asking for $5 more beginning this summer if you pay at the check-in counter _ a fee on top of a fee. Of course, ...
MINNEAPOLIS — As if charging $15 to check a bag weren't enough, two airlines are asking for $5 more beginning this summer if you pay at the check-in counter _ a fee on top of a fee. Of course, ...
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- Sundialsvc4 I'm a Fan of Sundialsvc4 140 fans permalink

Easy answer: SOUTHWEST.

    Favorite    Flag as abusive Posted 01:33 PM on 06/22/2009
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I'd rather quietly refuse to give them any money wherever possible - eating at the airport, packing light, getting to the airport extra-early so I don't feel compelled to pay a speed-up fee for some accelerated security line. The way I see it, why wait for everyone else to form "market resistance"?

It's not like I expect free food *anywhere* I go. I think though that they should exercise some discretion with baggage pricing. Maybe it should be "charge for the second bag" on short haul flights, "first two bags free" on medium to long-haul flights.

    Favorite    Flag as abusive Posted 10:57 AM on 06/22/2009
- Medius I'm a Fan of Medius 15 fans permalink
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I will never fly United Airlines, ever again. The worst airline ever. Besides the 'nickle and diming' fees, they have the rudest stewardesses. Most of them are in their fifties and are in a cranky mood ALL the time. After our flight was delayed for 5 HOURS in LA and my experience with that older stewardess, I promised myself to never ever fly United again. My 18 year old nephew who flew solo to hawaii could not purchase meals because United only accepted credit cards so he was not able to eat. I would like to know the genius who came up with that policy.

    Favorite    Flag as abusive Posted 06:44 PM on 06/21/2009
- Mickey7 I'm a Fan of Mickey7 25 fans permalink
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I've noticed that with United flight attendant's, as well, whatever their age. Must be a really crappy place to work if it comes through in how their employees treat passengers. Flying is truly miserable these days and the fees just make it worse. We are pretty much a captive audience, though, since our ground transportation (bus and train) options are practically non-existent and there are such waste distances between destinations. If there was an alternative, any alternative, I'd take it in a heartbeat. These airlines have no real competition. That's why they're getting away with this baloney.

    Favorite    Flag as abusive Posted 06:58 PM on 06/21/2009
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I just flew United from Seattle to OKC with lay over in Denver...a­nd the 3 flight attendants (mid 30's and one 50 yr old) were all friendly and helpful. Maybe the ones on your flight had a bad day or a sick kid or their spouse was recently laid off...No excuse, but sometimes, personal things affect our performance at work. My carry on weighs 35 lbs (I was carrying geode bookends) so the $15 to check it wasn't that bad..Flyin­g is just no fun anymore but it's cheaper and faster than driving across country to visit my family.

    Favorite    Flag as abusive Posted 07:50 PM on 06/21/2009

You and me both. UA is notorious for canceling not fully-booked flights. The plane I was supposed to fly on was, by no means empty, because I was held on a 10 hour layover trying to get a seat on the next plane. And the next. And the next. They also canceled about half their planes scheduled to leave out of La Guardia on Christmas Eve day. I missed Christmas 2007 because of them.

I recommend AirTran. Staff is very friendly and the fares are reasonable. It's a 'discount airline,' so it's pretty much no-frills traveling (and, to be honest, usually at least one crying baby). But, unlike United, if you have a horrendous experience, they really do try to make it up to you. I've also gotten so many free flights from them for giving up my seat and taking a later flight. Hear that, United? Maybe offer the option, and reward, for your customers, instead of just telling them to "f' off" when you cancel their flight. I think a mass boycott of United Airlines would be fun!

    Favorite    Flag as abusive Posted 10:53 PM on 06/21/2009
- Sundance I'm a Fan of Sundance 2 fans permalink

I agree, UA is the absolute WORST. Even worse than UScareways. The flight attendants are surly and act as if they OWN the airline. They are meaner and older than Catholic nuns as grammar school teachers. I have flown UA to Europe many times, when I did not have a choice. All you can do is grin and bear it. There application requirements must read: Airline flight attendants wanted. Must be over 50, soured on the world and mean and ugly a plus. LOL!

    Favorite    Flag as abusive Posted 04:48 PM on 06/22/2009
- Brillig I'm a Fan of Brillig 11 fans permalink

HEY! HOLD ON THERE WITH THE COMMENTS on 50 year olds! HOLD ON

    Favorite    Flag as abusive Posted 04:50 PM on 06/22/2009
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Ha!
If you lived in Chicago, our wonderful mayor has sold the city's parking meters to a private company. What use to cost $.25 to park for an hour on a neighborhood street now costs $1.00.

Downtown, the company charges $.25 for every 15 minutes so you have to have a sack of quarters to park OR, you can use the "Park and Pay" box which will accept YOUR CREDIT CARD!!!!!! Imagine, parking at 23.7% interest.
Who says the "government" is taking everything from private enterprise­.....NOT HERE!

    Favorite    Flag as abusive Posted 08:51 PM on 06/22/2009
- Isis N I'm a Fan of Isis N 13 fans permalink
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If these airlines are so in debt that even charging their customers more fees isn't putting them into the black, then it's time for them to go, which is what should have happened with the banks...

    Favorite    Flag as abusive Posted 05:55 PM on 06/21/2009
- TJCole I'm a Fan of TJCole 159 fans permalink
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We should Nationalize our Major Airlines it's long overdue..!

    Favorite    Flag as abusive Posted 04:16 PM on 06/21/2009
- nomorefed I'm a Fan of nomorefed 3 fans permalink

Your house is worth $125,000 but you paid $250,000 don"t worry with "Mark-To-Market" Neutered you can say whatever you want to about your home value and no one can refute you!
Now when you go in for a loan, simply declare the house is worth $300,000 and along with your clean "ON-THE-BOOKS Balance Sheet" with no visible other debts means you get money from the FED at 1% interest or maybe less!
Why can"t this world be true for ALL AMERICANS like it is for Wall Street?
We do not own Congress and they DO using ill-gotten FUNDS!
Are the Wall Street Banks really healthy? With "OFF-THE-BOOKS" accounting and "MARK-TO-MARKET" Neutered who knows what the truth is!

good articles: http://kl.am/tsc.am/tsc> recommended website

    Favorite    Flag as abusive Posted 04:12 PM on 06/21/2009
- gcallaghan I'm a Fan of gcallaghan 52 fans permalink
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Stop spamming

    Favorite    Flag as abusive Posted 08:32 AM on 06/22/2009

If you don't like it, file a complaint at FTC.gov. If large groups complain, maybe it will get attention.

    Favorite    Flag as abusive Posted 03:43 PM on 06/21/2009
- factotem I'm a Fan of factotem 128 fans permalink
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Ahhh capitalism­... you are as refreshing as a flower blooming from a pile of po*p. You are as beautiful as a three-dollar wh*re.

    Favorite    Flag as abusive Posted 03:07 PM on 06/21/2009
- bobncar I'm a Fan of bobncar 3 fans permalink

I found that it's worth the cost to send everything ahead by UPS. we're even prepaying to have it shipped back. It all gets there . nothing's been lost or damaged yet and what we send is waiting for us at our destination. There's no hassle with the curbside BS, we scoot thru security, and all we have to contend with is my purse which fits under the seat. No more dragging a 'carry on' thru endless gate changes.

Enough is enough. Airlines..­...give us back customer service!!!!

    Favorite    Flag as abusive Posted 02:50 PM on 06/21/2009
- factotem I'm a Fan of factotem 128 fans permalink
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Oh, I'm sorry ma'am. In modern captialism we penalize you for even needing our services.

    Favorite    Flag as abusive Posted 03:11 PM on 06/21/2009
- phlashba I'm a Fan of phlashba 14 fans permalink

Um, but...YOU surrendered.

    Favorite    Flag as abusive Posted 06:03 PM on 06/21/2009
- erinker I'm a Fan of erinker 20 fans permalink

Nice idea. Have done this when you were staying at a hotel? How does that work? Do you tell the hotel you will be mailing something first and they just hold it?

    Favorite    Flag as abusive Posted 03:17 PM on 06/22/2009

Damn Airlines..­.trying to make a profit and employ US citizens.
I suppose the airlines could operate at a loss for several years and the Federal Imperial Government could come in and "save them" just as they did with GM. Thank goodness for that piece of work.

    Favorite    Flag as abusive Posted 02:10 PM on 06/21/2009
- factotem I'm a Fan of factotem 128 fans permalink
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Read article again lil' reactionary.
1 billion in profits from fees. That's quite a bit beyond what you suggest. Especially since all the fees are for things that were previously free. But you sound like one of those neocons that can't bear to have capitalism questioned because you cannt separate the idea of captialism from democracy. They're two things I assure. you.
"Non-for-profit" insurance Co.s also make sh*tloads of profit.

    Favorite    Flag as abusive Posted 03:10 PM on 06/21/2009
- factotem I'm a Fan of factotem 128 fans permalink
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And you can be sure 99 percent of that 1 billion went into the pockets of the CEOs, not to anyone's salary or preserving jobs. How naive are you?

    Favorite    Flag as abusive Posted 03:26 PM on 06/21/2009
- poster1122 I'm a Fan of poster1122 27 fans permalink

You misunderstand the article. The $1 billion is in REVENUE, *not* PROFIT. United Airlines, in particular, is LOSING money left and right. The third quarter was considered a "good" quarter for them because they actually lost less money that analysts expected!

Now there are two ways to address this: one, they could keep all the perks and raise the ticket price. Or they can sell all these features as add-on.

If they did option one, someone who ISN'T using the add-ons basically ends up paying for someone who is. If I don't want to eat airplane food, is it really a better system that I pay for someone who does want that sandwich? Or should just the person eating the food pay for the food? Or just the people taking the second carry-on?

First rule in economics: There's no such thing as a free lunch. Someone is paying for that sandwich, moving that extra carry-on, etc. Should everyone pay for that service/good, whether they use it or not?

    Favorite    Flag as abusive Posted 05:18 PM on 06/21/2009
- THISTLE I'm a Fan of THISTLE 61 fans permalink

What next will we have to bring our own lawn chairs?
It is outrageous that the airlines contine to get away with this.
No other industry could survive pulling this kind of crap.
No other industry would charge you for something you already payed for -
you purchase a ticket - can't use it on the day, you purchased it, now you
have to pay more money to use the ticket you already purchased for use on
another day. The airlines "change" fees can often cost hundreds to change
the day. No other situation could be sitting next to a person, who pay hundreds
more to sit in the same row, same day, same flight as the one where you paid
far less, or in some cases far more. And the airlines contine to get away with this,
and they have ZERO appreciation for LOYALTY. They believe the consumers have no
choice - well an airline should come along giving a choice, and not just the "no-frills"
scary flights - but a real MAJOR airline that treats customers with respect, values and rewards
their loyalty. Is that too much to ask for?

    Favorite    Flag as abusive Posted 02:09 PM on 06/21/2009

Let YOUR dollars decide. That's what's so wonderful about a free market society.

    Favorite    Flag as abusive Posted 02:12 PM on 06/21/2009
- rharris513 I'm a Fan of rharris513 3 fans permalink

Except in a monopoly. Then you have to walk!

    Favorite    Flag as abusive Posted 03:56 PM on 06/21/2009
- poster1122 I'm a Fan of poster1122 27 fans permalink

People need to calm down about these fees. They're annoying, but quotes such as: "United Airlines alone expects to rake in more than $1 billion this year in fees ranging from baggage to accelerated frequent-flier awards" are totally misleading, because most airlines are generally NOT making money.

For the record, most airlines are actually *losing* money. But they can't simply raise the prices of their tickets to cover their operating costs because of sites like Orbitz and Travelocity that only compare ticket prices. So an airline would be at a disadvantage by raising the ticket price (the "honest" thing to do) against an airline that had a lower ticket price but all these add-on fees.

    Favorite    Flag as abusive Posted 02:06 PM on 06/21/2009

I agree. To be honest, I don't remember a time when flying was fun or particularly comfortable. It was a lot less uncomfortable about a fifteen years ago, when, chances are, the passenger(s) I was sitting next to wasn't obese. But that's out of my control.

I prefer to have the various fees versus raising the fares for everyone. You can still fly cheaply. Airlines make most of their profit on the first class customers. The cost of all the coach tickets covers the cost of the trip. Factor in all the employees, onboard and at every terminal across the country/globe day in and day out, it is a huge operation. Airlines made huge profits when fuel was cheap, and remained cheap. It's more volatile now.

    Favorite    Flag as abusive Posted 11:07 PM on 06/21/2009
- GTRich2004 I'm a Fan of GTRich2004 2 fans permalink

Exactly. The airlines watch ticket purchases compared to ticket prices extremely closely and they know very quickly if they are losing out on sales because their ticket is $10 more than another airline. That's why fare increases pop up and get dropped very quickly. Also, considering most "fees" don’t show up until you are almost through with the booking process, the majority of the web booking public stops looking at the fare once they have chosen the lowest price. So if the airline wants any chance at getting past the first page of results from Expedia/Or­bitz/Cheap Seats ..., they have to keep the base fare low.

Sure the airlines have faults. However, so does the flying public who thinks a round trip, cross country flight should cost $99. And for that $99, they should get first class accommodations, a gourmet meal, free drinks, free movies and all kinds of other services. If you want to pay "bus fair" for a plane ticket, don't be surprised when you get "bus fair" service.

    Favorite    Flag as abusive Posted 02:56 PM on 06/22/2009

Well said! Thank you poster, whyhell, and gtrich for your rational language and logic. I am a flight attendant and these things seem so common-sense to me but unfortunately not to everyone. I'm sure that the three of you would also receive better service and have a more enjoyable flight. Meanwhile those who are "screaming" on this post would be the same passengers treating all of the employees poorly and wondering why people are not interested in helping them.

    Favorite    Flag as abusive Posted 03:43 PM on 06/22/2009

amen... and less angry people for me to serve.

    Favorite    Flag as abusive Posted 03:56 PM on 06/22/2009

I no longer fly United, to me they do not exist.

    Favorite    Flag as abusive Posted 01:54 PM on 06/21/2009
- THISTLE I'm a Fan of THISTLE 61 fans permalink

I agree to me, UNITED no longer exists, I had horrific experiences with UNITED,
and I fly constantly but NEVER ON UNITED.

    Favorite    Flag as abusive Posted 02:11 PM on 06/21/2009

Same here. United Airlines is horrendous. I will yell it from the rooftops and tell anyone who'll listen :)

    Favorite    Flag as abusive Posted 11:08 PM on 06/21/2009
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I wonder which will be more expensive - the fees for a safe landing or the fee for an emergency crash landing.

    Favorite    Flag as abusive Posted 01:51 PM on 06/21/2009
- gcallaghan I'm a Fan of gcallaghan 52 fans permalink
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There are two types of emergency crash landings. One of them is survivable. The fee for that is astronomical.

    Favorite    Flag as abusive Posted 08:34 AM on 06/22/2009

I used to fly 4 to 6 months a year. Now, if I can't walk, bike , boat or drive to where I want to be in 40 mins or less, I don't need to go there. I'm done......­..........­........

    Favorite    Flag as abusive Posted 01:45 PM on 06/21/2009
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