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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Funny, the government is wasting exactly $1 Billion crushing cars.

    Favorite    Flag as abusive Posted 08:36 PM on 06/20/2009
- Tperl I'm a Fan of Tperl 9 fans permalink

That is not a waste. There is money in scrap metal, and there is money in people buying new cars. it is a good proven plan. Europe has been doing it for years.

    Favorite    Flag as abusive Posted 10:09 PM on 06/20/2009
- fireW I'm a Fan of fireW 19 fans permalink
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"Ancillary Revenues", "Online Discount" (as opposed to the Check-in Ripoff); standard business-jive for customer gouging. I wonder if the airlines charged their executives these bogus fees on their way to the Miami conference on contriving bogus fees.

    Favorite    Flag as abusive Posted 08:27 PM on 06/20/2009
- texhall00 I'm a Fan of texhall00 14 fans permalink
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Now you know why people like flying around in private jets. The airlines industry has because the cattle frieght of them all.

    Favorite    Flag as abusive Posted 08:25 PM on 06/20/2009
- proggirl I'm a Fan of proggirl 121 fans permalink
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Two thoughts:
1. Usurious B*st*rds.
2. On the other hand, I'd pay some real money to have the seat next to me empty on some occasions.

    Favorite    Flag as abusive Posted 08:14 PM on 06/20/2009
- XLintLuvR I'm a Fan of XLintLuvR 43 fans permalink
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I don't care if the seat next to me is empty. I'm 6'1. How about giving us human size seats. Americans are getting bigger, not smaller. Now they're adding another row because there's too much space at that bulkhead row in the front seperating First Class from Coach.

    Favorite    Flag as abusive Posted 08:35 PM on 06/20/2009
- rextrek I'm a Fan of rextrek 36 fans permalink
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YEA more people to pile on top of one another when the thing crashes.......flyin scares me anymore.

    Favorite    Flag as abusive Posted 10:04 PM on 06/20/2009
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The airlines are making fools of consumers - much the same as the banks did. Are you still happy with you low-fare bargains.

    Favorite    Flag as abusive Posted 08:08 PM on 06/20/2009
- DryIce I'm a Fan of DryIce 3 fans permalink
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"Rather than charge higher fares to everyone, they say, passengers can pick and choose the extras they want to pay for."

I loved reading this line a few sentences below the description of Ryanair's decision to charge for checking in.

    Favorite    Flag as abusive Posted 08:05 PM on 06/20/2009
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I'm always so tired of people complaining about airline fees and costs. Running an airport, paying the 50+ plus people it takes to handle just 1 plane, highly trained captains and maintenance people (less so now because of the price wars).

Air travel and discount are two words that weren't meant to go together but people act like it's a right not a privelage.

I wish they would all agree to double their prices, cut all the fees and for the people who can't afford it, kick them to the curb. For the people who can afford it, STOP COMPLAINING.

    Favorite    Flag as abusive Posted 07:59 PM on 06/20/2009
- t4cgirl I'm a Fan of t4cgirl 2 fans permalink

Yet JetBlue posts a profit, and United loses $400m.

These companies are enormous, lugubrious dinosaurs who are getting their backsides handed to them by more nimble companies. Unfortunately the airlines have such a stranglehold on federal air regulation, it's nearly impossible for new companies to start and bring new management to the market.

So you want us to be grateful for being under the thumb of a virtual monopoly? I'm sorry, but there's no reason to reward inefficient incompetence. The men and women flying the jets and shuttling the baggage might know their jobs, but they're not setting the policies -- and, whether they like it or not, they represent the companies with those policies.

You sound like one of those employees who is overwhelmed by that evil bugbear -- consumers wanting their money's worth. Trust us, we wish we could kick -you- to the curb.

    Favorite    Flag as abusive Posted 08:35 PM on 06/20/2009
- Tperl I'm a Fan of Tperl 9 fans permalink

The airlines were fine when they were regulated and were not using the very costly hub and spoke system of air travel. The landside costs are huge for these airlines to maintain their terminal in Atlanta, Charlotte, Detroit and elsewhere. Jet blue does not have these costs and they are doing fine running an airline the old fashion way. Direct Non Stop Flights. Why do I need to change planes 3 times on Southwest? Or 2 times on non discount airlines?

In direct response,...we are complaining because we are being ripped off in broad daylight. If you like getting ripped off take 3 bags with you, buy your tickets last minute, check in at the desk and rack up as many fees as you like!

    Favorite    Flag as abusive Posted 10:13 PM on 06/20/2009
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C'mon High-Speed Railways!!!!

    Favorite    Flag as abusive Posted 07:59 PM on 06/20/2009
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argghhh...don't get me started...

    Favorite    Flag as abusive Posted 08:22 PM on 06/20/2009
- blakestone I'm a Fan of blakestone 11 fans permalink
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High-Speed Railways = Money-pit...ask China

    Favorite    Flag as abusive Posted 08:52 PM on 06/20/2009
- brklynivn I'm a Fan of brklynivn 18 fans permalink

So is why China planning more high speed trains?

    Favorite    Flag as abusive Posted 09:32 PM on 06/20/2009
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i heart southwest.

    Favorite    Flag as abusive Posted 07:53 PM on 06/20/2009
- BikeFreak I'm a Fan of BikeFreak 32 fans permalink
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Because of fees and more fees airlines charge, I have stopped flying.

They made their choice...I have made mine.

    Favorite    Flag as abusive Posted 07:51 PM on 06/20/2009
- GJP2006 I'm a Fan of GJP2006 16 fans permalink
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We are almost ready to join you. We used to fly internationally once a year to visit relatives and now are cutting back to once every two years. The prices for our tickets have skyrocketed with all the new fees and fuel charges - we pay almost double for two tickets today compared to 3-5 years ago. It really is getting out of control. After this year's trip we may wait for three years before visiting next.

    Favorite    Flag as abusive Posted 08:42 PM on 06/20/2009
- solarian I'm a Fan of solarian 14 fans permalink

hope the airlines continue to lose money greddy

    Favorite    Flag as abusive Posted 07:48 PM on 06/20/2009

And this is why I refuse to ever fly United, and whenever possible, won't fly a domestic airline company. The US airlines are just sha.meless with their fees. That checked bag fee was supposed to be because of rising gas prices. Well, guess what? Gas prices are lower than when the fees were implemented, and they are raising those fees, not doing away with them.

RyanAir at least has an excuse: They only ch.arge you 6 bucks for a flight, and then nickel and dime you the rest of the way. The big airlines are charging standard fares and then making the overall cost of flying outla.ndish.

    Favorite    Flag as abusive Posted 07:36 PM on 06/20/2009

And this is why I refuse to ever fly United, and whenever possible, won't fly a domestic airline company. The US airlines are just shameless with their fees. That checked bag fee was supposed to be because of rising gas prices. Well, guess what? Gas prices are lower than when the fees were implemented, and they are raising those fees, not doing away with them.

RyanAir at least has an excuse: They only charge you 6 bucks for a flight, and then nickel and dime you the rest of the way. The big airlines are charging standard fares and then making the overall cost of flying outlandish.

    Favorite    Flag as abusive Posted 07:35 PM on 06/20/2009

Honestly..... If you charge me more for the ticket and then I don't have to worry about it that would be great. Charge me for a ticket and then start charging me more once I get to the airport and I'm going to be one customer that you do not want to deal with.

I also noticed that once the fuel prices began to drop again, the baggage surcharge did not. Show me the airline that gets rid of the fees first and I'll be a loyal customer to them.

    Favorite    Flag as abusive Posted 07:08 PM on 06/20/2009
- dawnec1957 I'm a Fan of dawnec1957 56 fans permalink
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Fly Southwest...No charge for TWO under carriage bags and no charge for carry on up to the size of a high school backpack! My son is flying in a couple of weeks from San Diego to Kansas City. He is on a nonstop flight that offers a snack and soda (or water) for FREE. He can sit anywhere he wishes on the plane as there is no assigned seating. His flight (one way with a two week advance purchase was $169. plus fees...Total fees and cost was $203. If I was to have driven to San Diego from MO to CA it would have cost $650. in GAS, not to count the wear and tear on the car and tires nor the food stops, bathroom breaks, exhastion from driving the 26 hours!

Southwest AIr has been my carrier for 10 years. They Are simply.....THE BEST!

    Favorite    Flag as abusive Posted 07:39 PM on 06/20/2009
- plages I'm a Fan of plages 19 fans permalink

This is fantastic! We'll now drop the american air carriers, and now head off to France, via, Air France!

Psst... Something tell US, that American air carries will go belly up, then ask congress to back them, just like-the american car manufactures! What a country, what a congress!

    Favorite    Flag as abusive Posted 06:59 PM on 06/20/2009
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