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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And THIS is why Southwest is quickly gaining my business. They're fairly up-front about everything, and the whole 'pick your own seat' thing rocks.

    Favorite    Flag as abusive Posted 10:51 PM on 06/20/2009
- Dennis I'm a Fan of Dennis 18 fans permalink
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I used to travel fairly frequently on business. Over the years the food went from fairly good to bad to nonexistent without a fee. The seats were moved closer and closer until it was like spending five or six hours in the back seat of an old VW Beetle. In order to avoid baggage check fees people began to jam immense amounts of stuff into the overheads so that deplaning consisted of sitting in your seat for twenty minutes or more while they wrestled their baggage back out.
I wouldn't get on an airliner now for all the tea in China.

    Favorite    Flag as abusive Posted 10:35 PM on 06/20/2009
- DMcD I'm a Fan of DMcD 11 fans permalink
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I'm with you ....
I used to love to fly but now , its torture.
They squeezed the seats so closed together that ....
I can't touch my feet w/out banging my head into the seat in front of me ....
my knees were under my chin.
Now I know what its like to be kidnapped & shoved into a steamer trunk.
After my last LHR to SD flight , I felt like a contortionist for days afterwords.
no thanx

    Favorite    Flag as abusive Posted 12:01 AM on 06/21/2009

A bit overstated, but I get your point. Still, it's remarkable that the technology exists to travel cross country in 6 hours... I'll continue to fly....and don't mind the fees if they are giving me options. Booze shouldn't be free. And the weight and size limit fees have caused me to do a better job at packing only the essentials. But, they are pushing it with check in fees and fees on top of fees....they forget that fewer people will refuse to fly on principle.

    Favorite    Flag as abusive Posted 01:28 AM on 06/21/2009

Switch to JetBlue or Southwest, they don't believe in the nickel and dime motto.

    Favorite    Flag as abusive Posted 10:33 PM on 06/20/2009
- NPA I'm a Fan of NPA 5 fans permalink
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The airline and bank industry are sticking it to the middle class. FEES FEES FEES. Everyone should boycott the airlines for one week and we should ban together and make a run on the banks (if I had a bank account).

Someone just tell me what's the next bubble so I can get in early!

    Favorite    Flag as abusive Posted 10:30 PM on 06/20/2009
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Ironically, the government has made sure that a run on banks won't phase any banks. It's called the FDIC.

    Favorite    Flag as abusive Posted 11:01 PM on 06/20/2009
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The problem with your plan is that business can't just stop doing business to make a point.

    Favorite    Flag as abusive Posted 12:47 AM on 06/21/2009
- motoboy I'm a Fan of motoboy 17 fans permalink
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We aren't civilized if we tolerate this nickel & dime crap.

We need to get to one national airline, like all the Europeans. Them we can subsidize it when necessary. We are effectively subsidizing ALL our domestic arlines right now, thru our government's hands-off policies. It would be cheaper to just have one and demand decent service from it.

    Favorite    Flag as abusive Posted 09:58 PM on 06/20/2009
- jalowe1957 I'm a Fan of jalowe1957 47 fans permalink
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As I write this, I have 65,000 Delta SkyMiles in my frequent-flyer account, with an additional 25,000 coming my way through various promo deals that add mileage to my account. If you want to fly in the future, be best advised to do your homework, bring snacks on the plane to save on food costs, and travel light so that you don't get hit with additional fees.

    Favorite    Flag as abusive Posted 09:56 PM on 06/20/2009
- Meggie I'm a Fan of Meggie 101 fans permalink
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Best not to travel while teenaged. It never fails, someone at the airport is trying to skruover my teenager until they see an adult with her. She takes it will, but I'm 100% sick and tired of it.

    Favorite    Flag as abusive Posted 10:30 PM on 06/20/2009
- msjimmied I'm a Fan of msjimmied 55 fans permalink
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After my trip with United a couple of days ago, with all the attending "fees", I will never fly them again. Southwest or some other airline will be just fine. I will tell my family and friends. Unless we tell the airlines what we think of their ridiculous "fees" they will not go away, and the only way they will get the message is if there revenues take a hit.

    Favorite    Flag as abusive Posted 09:48 PM on 06/20/2009
- Meggie I'm a Fan of Meggie 101 fans permalink
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Agree.

    Favorite    Flag as abusive Posted 10:31 PM on 06/20/2009
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I think United only charges for stuff on its domestic flights. You can still check bags and get lousy food on international flights.

    Favorite    Flag as abusive Posted 12:49 AM on 06/21/2009
- IWantTofu I'm a Fan of IWantTofu 21 fans permalink

They should have a series of security check-in lines with prices ranging from free up to $100, and various prices in between. That way, customers can pay up for shorter lines, or save money by waiting in the free security line.

I also like the idea of coin slots on the lavatory doors, and having the Stewardesses charge customers for making change.

Also what about an embarking and disembarking fee? Charging people as the both get on and off the plane. You can also charge a higher price to allow people to get off first.

The possibilities are endless!

    Favorite    Flag as abusive Posted 09:42 PM on 06/20/2009
- LarBear I'm a Fan of LarBear 30 fans permalink
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Why do WE the People continue to Believe in the Political MYTH (especially from the Republicans) of a Free Market Place??? The De-Regulated Market Place is a Factor that crashed the World Economy... Greed prevailed!

In an Intelligently Regulated Market Place WE would figure out cost/mile to fly each type of airplane... There would be a break even minimum cost per ticket to fly ANY Airline from point A to point B... Market Place competition would be about service... There would NOT be any below cost/mile airlines attempt to put the other Airlines out of Business... In a Regulated Market Place High Speed Rail would end short range flights that overcrowd airspace and airports...

Walmart is a shining example of a deregulated Market Place... They are now so large they can undercut most everyone's prices... But the COST of that deregulation is Walmart has exported many American businesses overseas to supply Walmart... Sadly, most people perceive only the Low Prices, not the Cost to the USA, of WE the People, doing business with Walmart...

How do WE the People continue to believe in and support a supposed Free Market Place... Do we think Corporate Millions of $$$$$ going into Congressional Campaigns keep the Market Place Free??? LMAO...

    Favorite    Flag as abusive Posted 09:42 PM on 06/20/2009
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You can figure out how much it costs to fly. It's called voting with your dollars and shopping for the best rates.

This "deregulated free market" you talk about doesn't exist in America. So many government-created barriers to entry and implicit guarantees of "too big to fail" exist in our economy that for anyone to blame problems on a free market they must not know what's really going on.

    Favorite    Flag as abusive Posted 11:14 PM on 06/20/2009
- LarBear I'm a Fan of LarBear 30 fans permalink
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vagabondvet ......

Let me see if I can make the point clearer....


THERE IS NO FREE MARKET PLACE!!!


The Market Place has always been Regulated/Manipulated by Congress and Wealthy Campaign Contributions.... The current Economic crash was NOT an accident... Nor was the Savings/ Loan crash/scandal before it.... Likely the next manipulation is already being put into place.....


Is there anyone who actually believes large Campaign Contributions are NOT BRIBES to get Legislation to favor the Wealthy? Legally, NO they are NOT... But those who take the "BRIBES" are those who make the Rules....


The "Rules" of the Market Place were manipulated to create businesses "To Big To Fail"... That did NOT happen by accident... It's quite apparent those who "monitored" and supposedly attempted to regulate the Market Place did NOT believe those in the Market Place could/would be so GREEDY as to crash their own Businesses... They were absolutely wrong!


Even as I write Banks/Corporations/Credit Card Company are GREEDILY getting what they can, even if they destroy the USA... Clearly also, many in Congress are working solidly for those who "Contribute" to their Campaigns...

Example: 70% + of the Public want Single Payer (Health Care)... Many in Congress are working hard to prevent that from happening... Clearly, Congress does NOT truly represent the Public...

Are we best served by many Airlines paying their bills, competing with service, or one, or two, who gobble the rest up in a MYTHICAL Free Market Place?

    Favorite    Flag as abusive Posted 10:43 AM on 06/21/2009
- protagonia I'm a Fan of protagonia 80 fans permalink

Time to get in the old wagon and drive somewhere.

    Favorite    Flag as abusive Posted 09:32 PM on 06/20/2009
- Tperl I'm a Fan of Tperl 9 fans permalink

With $3 a gallon gas prices? good luck.

    Favorite    Flag as abusive Posted 10:07 PM on 06/20/2009

Additionally, there is not a great time-saving aspect to short flights.

If you need to be at the airport 1-1/2 hours ahead of time, it's actually 30 minutes on the tarmac before "wheels up", it takes 45 minutes to fly the 300 miles, another 15 minutes to circle, 15 minutes to deplane and finally, another 30 minutes to retrieve your baggage and 30 minutes to rent a car... that's 3-3/4 hours.

One can drive 300 miles in 5 hours. You have saved a whopping 1.25 hours by flying...

and that's assuming a relatively uneventful flight. Any real flight delays make it a wash.

    Favorite    Flag as abusive Posted 09:23 PM on 06/20/2009
- DMcD I'm a Fan of DMcD 11 fans permalink
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Point well taken .......

    Favorite    Flag as abusive Posted 12:12 AM on 06/21/2009
- jackiero I'm a Fan of jackiero 21 fans permalink
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Wow. You actually fly when it's only 300 miles away? Lazy bum. I only fly when it takes up 1/2 of my weeklong vacation just getting there.

    Favorite    Flag as abusive Posted 01:16 PM on 06/22/2009
- arizonabay I'm a Fan of arizonabay 17 fans permalink
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But Ryanair, is the king of the no thrills/fees however thier tickets are dirt cheap. They have flown me numerous times acros Europe, cheaper than Soutwest ever has across the US.

    Favorite    Flag as abusive Posted 09:09 PM on 06/20/2009
- brklynivn I'm a Fan of brklynivn 18 fans permalink

By the time you add up all of Ryanair's fees, it's no cheaper than Easyjet or AirBerlin, except for a lucky few.

    Favorite    Flag as abusive Posted 09:34 PM on 06/20/2009
- zlohcuc I'm a Fan of zlohcuc 6 fans permalink

LOL, this is why people arw moving away from United and carriers of this ilk, they are going to have to keep going with the fees because smart travelers will opt to go with those that are providing service, -which is worth paying for all thngs being equal

    Favorite    Flag as abusive Posted 09:03 PM on 06/20/2009
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Believe it or not.

We were better off when airline travel was a regulated industry. At least we had standardized fares between cities. Many of these 'bargain fares' amount to nothing but bait and switch.

    Favorite    Flag as abusive Posted 08:53 PM on 06/20/2009

Robert L. Crandall, former CEO and Chairman of American Airlines publicly advocated high-speed rail for domestic distances up to 600 miles, because, first of all, airlines make relatively little profit on short hauls, and second, eliminating all those short-distance flights would free up a lot of extra gate space at today's overcrowded airports and eliminate the need for expensive airport expansion.

    Favorite    Flag as abusive Posted 08:44 PM on 06/20/2009
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