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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$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.

' fees for bags, fees to get through the line faster, even fees for certain seats.'

What is the diff between a fee and a tax?

Rethugs call it a fee !

United alone expects to rake in more than $1 billion this year in fees

Know how much their CEO';s ahve been paid while employees pensions lost over 60%

    Favorite    Flag as abusive Posted 01:33 PM on 06/21/2009
- AZ4thatone I'm a Fan of AZ4thatone 7 fans permalink
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I would LOVE it if everyone got this PO'd about paying upwards of 25% interest to the banks after footing the bill for the bailout from the US treasury. B of A already paying off their loan? And that is because we "the people" are paying it off for them by being slammed with high interest rates. Where does this stop?

    Favorite    Flag as abusive Posted 01:08 PM on 06/21/2009

what do you think the CEO's have done to the employees of all the airlines

After 9 11 - rememebr the bailout those ceo's got?

    Favorite    Flag as abusive Posted 01:34 PM on 06/21/2009
- cadawa I'm a Fan of cadawa 21 fans permalink
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It should be evident to everyone that flies that airlines don't care about their customers. Baggage gets better treatment than most passengers.
Economic conditions means fewer people are flying. Instead of making it cheaper and easier for people to fly, they are trying to wring every penny out of those still willing or able to do so.

    Favorite    Flag as abusive Posted 12:13 PM on 06/21/2009

Americans are becoming a bunch of whiners !! seriously.

I love the cheap fare. i go to 3 travel websites, find the cheapest fares, pay a few surcharges on luggage and on my way.

All these morons here are complaining as if they make 200 grand a year, fly first class and deserve some kind of special treatment. get over yourself already !!

You are flying a commercial airline, in coach class. Do some calculation based on inflation and you would see that the fares are actually much cheaper adjusted to inflation. so quit complaining and get your lardass in the seat !!

    Favorite    Flag as abusive Posted 11:58 AM on 06/21/2009
- jeffp26 I'm a Fan of jeffp26 26 fans permalink
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If it's good enough for JP Morgan Chase and Bank of America, it's good enough for airlines.

Wonder what they'll do when they've stolen all of our money?

    Favorite    Flag as abusive Posted 11:32 AM on 06/21/2009
- TopDog I'm a Fan of TopDog 8 fans permalink
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"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.")"
__________­__________­__________­__________­__________­__________­__________­_________
Correct me if I am wrong but, isn't this called Anti Trust?

    Favorite    Flag as abusive Posted 10:37 AM on 06/21/2009

The whole issue of air travel has to be analyzed through a realistic lens. If we're going to insist on running airlines with fares that are far less than the actual per passenger cost of flights and call it "deregulation", we're going to see a continuing deterioration in safety, uncomfortable flights and off-the-wall costs. Air travel is essential to the US economy and should be regulated with subsidies in order to make certain flights are affordable on the one hand, reasonably paid and safe on the other. Flying planes such as the one that crashed in Buffalo into bad weather, knowing it is not safe in bad weather and then blaming the lack of safety on another low-cost effort to fly -- poorly trained and low paid pilots -- simply means the industry will become more and more unsafe on the one hand and even more passenger-­unfriendly on the other.

Deregulation of the airlines was a stupid idea and the chickens are now coming home to roost. Either the transportation planners in the US must allow companies to charge the cost of flying and limit air travel to the well-off, or reregulate to guarantee reasonably affordable air travel with substantial subsidies for safety, personnel and equipment.

    Favorite    Flag as abusive Posted 09:51 AM on 06/21/2009

wait. so libs want to tax oil and subsidize air travel.

Only MORONS want to tax profitable companies and subsidize loser ass companies. i have a solution.

Next time an airline goes bankrupt, no restructuring. straight to liquidation. the airline industry has HUGE overcapacity !! a few liquidations in the industry is needed. besides, why subsidize an industry that cant turn a profit in 100 years !!

    Favorite    Flag as abusive Posted 11:54 AM on 06/21/2009

AMEN! I want to say so much more about TARP and GM but I have deductive reasoning skills. No need to say more.

    Favorite    Flag as abusive Posted 02:16 PM on 06/21/2009

Gee, what a brilliant comment you made. Why don't you do a new startup airline and, after borrowing up the gazoo for unsafe planes like the one that crashed in Buffalo for next to nothing, so that other, responsible airlines that are just getting by are forced to lower their prices to compete? Then you can hire incompetent, poorly paid pilots and put heat on an industry-dominated FAA to ignore safety regulations while pushing it to change the regulations to make them less difficult to comply with. When the crashes start, you can blame the poorly trained pilot and ignore the fact the plane was unsafe all along.

It doesn't work. The industry has costs and when new startups backed up by the FAA forces companies not to be able to charge their costs in order to fly, the industry ends up like ours has since deregulation. Only despicable greedy people want to ignore the reasons the airline industry is unprofitable and the responsibility of the government to assist in providing a safe, easily accessible airline industry. And only despicable, greedy people are willing to ignore the necessary, massive deterioration in safety that occurs if the industry is massively inadequately funded in the long run.

Are you the president of Colgan Airlines?

    Favorite    Flag as abusive Posted 06:57 AM on 06/22/2009

I drive more and fly less than before. I would rather drive from SF to LA nowadays. It takes more time, but it's much less hassle and stress. For summer vacation, I chose Oregon, and I'm zipping up in my Prius. At work, I always ask if a videoconference could take the place of a face to face meeting.

    Favorite    Flag as abusive Posted 09:36 AM on 06/21/2009
- dadd I'm a Fan of dadd 6 fans permalink

It makes me really feel good when I hear stories of lines and fees and all that hassle and to know that I am not a part of that

really, thats you feel good?

    Favorite    Flag as abusive Posted 08:30 AM on 06/21/2009
- dadd I'm a Fan of dadd 6 fans permalink

singapore airlines is great as well.

    Favorite    Flag as abusive Posted 08:30 AM on 06/21/2009
- LeonBNJ I'm a Fan of LeonBNJ 23 fans permalink

The big problem is that these fees are mainly aimed against the individual, infrequent or small business traveler. People who travel very frequently (members of the highest tiers of frequent flyer programs) and many corporations make deals so they do not have to pay these or certain fees. Worse, with many fewer airlines than in the past, competition has just become about price, not service. You may have only 1 or 2 full service airlines from many airports to your destination, perhaps no option of a discount airline or having to go via another point and have to change planes, so the airlines got you by the throat. Perhaps we need to bring back some re-regulation of airline fares to end these fee scams, bring back some reasonable service and fair compensation for the airline workers.

    Favorite    Flag as abusive Posted 08:02 AM on 06/21/2009
- viggoros I'm a Fan of viggoros 2 fans permalink
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I just took a 4-night stay in the New York area, and had booked with American Airlines. They are charging $15 for the first luggage and $25 for the second. When I arrived at the Airport in Miami, I was told that the plane I was booked had been cancelled, and they booked me on the next 2 hours later. Well, my original plane couldn't have enough passengers, so let us just cancel it. Who cares if we inconvenience the passengers. On my return flight, I was again told that the plane from Newark to Miami was cancelled, and there was no other planes leaving that night. However, I could take a shuttle to JFK and leave from there to Miami. I paid for the shuttle myself, and I almost missed the return flight by 5 minutes because of bad traffic (Rush hour). I know next time never to use American Airlines from Miami to Newark. The only good one for that stretch as far as I know is Continental. Newark is one of their main hub, so they almost have no cancellation except in bad weather.

    Favorite    Flag as abusive Posted 07:27 AM on 06/21/2009
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Delta charges $600 round trip to take 1 surfboard from the states down to Barbados or any other international destination such as Central America. I usually want to take 2 boards when I travel.

What am I to do? Tell my wife she can't go with me cause the boards took the money for her seat? Like that would work.

Bunch of tossers.

    Favorite    Flag as abusive Posted 07:11 AM on 06/21/2009
- SamKnause I'm a Fan of SamKnause 73 fans permalink

The owners of the large airlines were run by incompetents and greedy CEO's. Instead of setting money aside when times were plentiful they wasted it on lavish salaries and multi million dollar bonuses. Now that times are bad they have no cushion to fall back on and their answer, like every other large corporation, is to stick it to their customers, the very people who built their wealth. When fuel prices soared their rates soared, when fuel prices fell their prices remained the same and they kept inventing new fees. They seem to be taking their cues from the credit card companies.

    Favorite    Flag as abusive Posted 07:05 AM on 06/21/2009
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The ENTIRE Corporate World has learned from Wall Street about the value of visible and invisible hidden fees. Insurance Companies know about Massive FEES charging 30% in Administrative FEES while Medicare charges only 2.1% in Administrative FEES, 1,500% More than Medicare!

Wall Street was a CRISIS of FEES at every level of the SCAM that should have been Profits for the Banks but were instead SKIMMED OFF into employee Executives Pockets leaving the Banks profitless and in need of Backfilling with TAXPAYER DOLLARS!

Wall Street looks at as a CLEVER way to "HAVE YOUR CAKE AND EAT IT TOO" as they think of it as getting back any limited taxes they may have paid to the BANKRUPT GOVERNMENT over the last TEN or MORE YEARS! In their mind America deserves NOTHING and they DESERVE EVERYTHING TWICE!

    Favorite    Flag as abusive Posted 04:43 AM on 06/21/2009
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