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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- jsgaetano I'm a Fan of jsgaetano 216 fans permalink
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It sure is a good thing Bush and all the "Fiscal Conservatives" bailed these guys out.

    Favorite    Flag as abusive Posted 03:06 AM on 06/21/2009
- ramal I'm a Fan of ramal 77 fans permalink
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The answer is very simple: STAY HOME, AMERICA!

    Favorite    Flag as abusive Posted 02:28 AM on 06/21/2009

People are doing internet searches for airlines and hotels based on price. The cheapest rates come to the top. So they make the official rate lower, and tack on all kinds of fees. Hotels are far worse than airlines in this regard. The last place I stayed charged $5 "safe fee" just for having a safe in the room. Many hotels that used to have free parking now charge $30 a day. I even stayed at a hotel in L.A. that wanted $20 to use the hotel gym! It's no surprise that airlines are doing the same.

It is time for a "truth in pricing" law, similar to the "truth in lending" statement a bank gives you when you get a mortgage, i.e. the one that shows your actual rate vs. the rate they told you. Airlines, hotels, and rent-a-car companies should be required to post the actual average costs with fees alongside the cheap rate.

    Favorite    Flag as abusive Posted 01:42 AM on 06/21/2009
- ams23 I'm a Fan of ams23 3 fans permalink

What's next 40 dollars more for a chair everyone elses goes in the cargo hold?

    Favorite    Flag as abusive Posted 01:35 AM on 06/21/2009

I churn out roughly a quarter of a million miles a year in the air. I boycott any airline I feel tries to take advantage of me.

Domestic airlines I'll use:

Continental.
Southwest
Northwest Airlines (before they got bought out by Delta)
JetBlue
Alaska
Hawaiian

International airlines (which I prefer, even for domestic flights):

Lufthansa
Qantas
JAL
KLM
Emirates
Singapore
Qatar
Air Canada

Domestic airlines I refuse to fly for any reason:

United
US Air
Delta
American
AirTran

International I refuse to fly:
RyanAir

Best airlines ever (by my standards):
Qantas
Emirates
Qatar
Lufthansa

    Favorite    Flag as abusive Posted 12:55 AM on 06/21/2009

You don't like Virgin? I flew LA/ London on Virgin within the last two years and really enjoyed it. No attitude, extra leg room, plenty of entertainment, and food was good!

I've always had bad experiences with Continental. One of the last times I flew I was charged $50 fee for excess baggage. 10 minutes later they announced that my flight was 4 hours late, but refused to retrieve my extra bag so I could leave with my friend who had just dropped me off.

Southwest is great!

    Favorite    Flag as abusive Posted 01:22 AM on 06/21/2009

I agree that Lufthansa is great. I live in Europe and fly back to the US twice a year. The problem is that United is partners with Lufthansa. Lufthansa gets me to Chicago, and then United has to fly me to Iowa, 300 miles away. Over half of the time United messes the whole trip up.

I will also agree that RyanAir is an awful airline, but when they charge 1 Euro per flight, as they often do, even with all the fees the cost is well below $50 and you can fly almost anywhere in Europe. You get what you pay for, so when I pay $25 for a flight, I don't expect much- as long as I get there I'm happy, and they have always done that.

    Favorite    Flag as abusive Posted 07:27 AM on 06/21/2009

You don't have to use their partner airlines. Qantas, for example, is partnered with American (as is KLM). However, when I fly to or from Australia I always make a point to get them to book me on another airline for my domestic leg if Qantas can't take me where I'm going. That usually means Alaska if the leg is all west coast, Continental/JetBlue if it's east coast, or Southwest if it's Midwest/South (except for Houston, at which point it's always Continental due to it being their hub)

    Favorite    Flag as abusive Posted 10:23 AM on 06/21/2009
- jadeba I'm a Fan of jadeba 37 fans permalink

Haven't flown all the airlines on your list but I totally agree with the list of refuse to fly airlines. United is the worst of the bunch. Worst service, most crowded. I lost it when UA started the priority boarding lane - little piece of red carpet protected by 4 stands (God forbid a nobody steps foot on that carpet). Imagine putting one little piece of carpet and 4 stands, plus signage at each and every United gate in the world. They need to nickle and dime us to pay for that idiocy.

I like Frontier, which isn't on your list and just flew British Airways which was great.

    Favorite    Flag as abusive Posted 11:08 AM on 06/21/2009

Frontier is owned by Alaska, which is why I didn't list them. Same airline.

    Favorite    Flag as abusive Posted 08:24 PM on 06/21/2009
- erinker I'm a Fan of erinker 22 fans permalink

You left Midwest Air off your BEST list. They are consistently FANTASTIC (if a little bit pricier).

    Favorite    Flag as abusive Posted 03:25 PM on 06/22/2009
- dagnome27 I'm a Fan of dagnome27 8 fans permalink
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Do you suppose they ever considered that if they LOWERED fares, MORE people would fly?

    Favorite    Flag as abusive Posted 12:54 AM on 06/21/2009

The flights are already packed. They've gotten rid of the convenience factor of a litany of flights into most cities every day and on larger planes.

Now they cram you into 737's which have been specially fitted to make you feel like cattle, only give you 1 or 2 flight options per day, and cram you in there.

    Favorite    Flag as abusive Posted 01:00 AM on 06/21/2009
- b93950 I'm a Fan of b93950 4 fans permalink
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Guess what’s next, a fee for sitting in a pressurized cabin...

    Favorite    Flag as abusive Posted 12:40 AM on 06/21/2009

I think that this trend is a fine thing. If the airlines keep this up for another decade, there will be only one airline left flying and all of the others will be bankrupt.

Your city had better have service by Southwest Airlines or, by 2019, your city won't have any airline service at all.

    Favorite    Flag as abusive Posted 12:38 AM on 06/21/2009
- Indra I'm a Fan of Indra 6 fans permalink

I don't fly anywhere so I don't have to worry about it. 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. I like trains and ships myself.

    Favorite    Flag as abusive Posted 12:30 AM on 06/21/2009
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You are fortunate to live in a place that has trains and ships and fortunate that you don't have to be anywhere in a hurry.

    Favorite    Flag as abusive Posted 12:45 AM on 06/21/2009
- madtom I'm a Fan of madtom 40 fans permalink
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I expect not to contribute one bloody dime to this horseshit.

    Favorite    Flag as abusive Posted 12:24 AM on 06/21/2009
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I give them about 8 months before they start charging for carry-on bags.

With every charge they add Southwest gets stronger.

    Favorite    Flag as abusive Posted 12:02 AM on 06/21/2009
- Yurdelite I'm a Fan of Yurdelite 26 fans permalink

Let's not forget the "change" fee of $150 by most airlines if you cancel your non refundable ticket or change it to another date. Does Southwest do that? NO they don't. USAir is ridiculous and on top of it all they have outsourced the call centers to the Philipines or Scotland or wherever they can get the cheapest labor. It is really disgusting.

    Favorite    Flag as abusive Posted 12:00 AM on 06/21/2009
- DMcD I'm a Fan of DMcD 11 fans permalink
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Guess we'll just have to even things up and ......
curtail or eliminate air travel , as I've done already.
We (the public) can play rough too ..........
besides, my 6' body no longer fits in their 3' seats.

    Favorite    Flag as abusive Posted 11:49 PM on 06/20/2009
- kdlaiusa I'm a Fan of kdlaiusa 9 fans permalink
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I will do my best to fly those airlines who don't try to rip off my money.

    Favorite    Flag as abusive Posted 11:19 PM on 06/20/2009
- Aquinnah I'm a Fan of Aquinnah 5 fans permalink

I travel Southwest almost all the time except for the cities they don't fly into. It is so aggrevating having to pay to check a bag. I feel like they are laughing at the little guy all the way to the bank.

    Favorite    Flag as abusive Posted 11:02 PM on 06/20/2009
- DMcD I'm a Fan of DMcD 11 fans permalink
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Thats not just a 'feeling' ....
they 'are' !

    Favorite    Flag as abusive Posted 11:51 PM on 06/20/2009
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