American to levy $15 bag fee
By Adam Schreck, Associated Press
Published May 21, 2008 at 10:41 a.m.
What will you do when faced with an airline's per-bag checking fee?
For some time now, cash-strapped airlines have been doing away with once-complimentary perks such as earphones, meals and extra legroom in exit rows.
Now the largest U.S. carrier is testing the limits of passengers' willingness to pay for extras, announcing plans to start charging $15 for what many fliers consider a downright necessity: a single checked bag.
What's next?
"Pay toilets in the coach cabin, maybe," joked longtime airline consultant Mike Boyd.
American Airlines' move is part of a larger effort by the industry to find ways to improve revenue in the face of soaring fuel prices and a slumping economy. The airlines anticipated a multibillion-dollar loss this year, even before oil's latest spike above $130 a barrel Wednesday.
Still, the latest effort could be a tough sell with passengers.
Fort Worth, Texas-based American announced the change at the same time it said it would slash capacity and retire at least 75 older, gas-guzzling planes. Gerard Arpey, chairman and chief executive of American parent AMR Corp., said the industry cannot withstand sky-high oil prices and must find ways to cover rising costs.
The added baggage fee amounts to a fare increase, and it comes on top of a series of ticket-price increases and fuel surcharges in recent months. But it is also the industry equivalent of a trial balloon that could pop before it gets too far off the ground.
"There comes a time when the nickel-and-diming starts to be annoying," Boyd said.
Under American's plan, many domestic passengers who buy tickets after June 14 will have to pay $15 each way for the first piece of checked luggage. The fee does not apply to passengers who pay full-price for tickets, elite members of its frequent-flier program or people traveling overseas.
There will be no charge for carry-on bags.
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May 21, 2008
11:07 a.m.
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MtnRooster writes:
So what happens if you fly after this starts in mid June but booked your flight months ago? Get ready for war with the ticket counter people or you could pay it then spend 4 hours on hold trying to get it refunded.
May 21, 2008
11:25 a.m.
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JB writes:
This is not a good move. I know the airlines are just trying to make ends meet, and are being crushed by high oil prices... but at some point all of the price increases and extra fees will discourage many more people from flying. At that point, no amount of fees will make up for lost revenue.
Many companies are no longer having people take business trips unless totally necessary, people are opting to stay closer to home for vacation. I'm not sure why American, et all... didn't hedge their fuel like Southwest did. I'm not a huge fan of Southwest, but they might soon be our only viable option!
May 21, 2008
11:26 a.m.
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Citizen21 writes:
Don't talk to the ticket people, they will charge you for that too!
May 21, 2008
11:37 a.m.
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Citizen21 writes:
What happened to customer service? And, now they are going to charge passengers for loosing their luggage? Airlines are going out of business NOT because of rising fuel costs. More simply, the top heavy management— and overly paid execs—are the problem. How can a CEO and top manager at a company continue to make big bucks when they drive the company out of business with bad decisions?
May 21, 2008
11:42 a.m.
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robertzimmerman writes:
"then spend 4 hours on hold"
That's worth $15?
May 21, 2008
12:01 p.m.
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MTN_Frank writes:
They used to discourage people from taking all their stuff as carry on. Well I'll be carrying on everything I can now. I used to check my smallish bag just to make the TSA check point and the aircraft boarding a little easier for me and my fellow passangers. But if I need to pay extra for that then I (and I bet many others) will just carry on as much as I can and we'll all have to arrive 3 hours early to get loaded on the aircraft.
How about just raising the ticket price by $15.00 if they need to.
May 21, 2008
12:15 p.m.
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KelcyCo writes:
It is just another price increase by just another name. Essentially the airlines are just progressing down the ala carte road. Before long we will be paying a fee for each flight attendant as well as a surcharge for the pilots. Bottom line, figure in all the fees and surcharges when shopping for a flight and then go with the cheapest that meets your requirements.
May 21, 2008
12:21 p.m.
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TheDenverB writes:
... and more people continue to turn to airlines that actually know what they are doing, like Southwest.
May 21, 2008
12:45 p.m.
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bthye writes:
MtnRooster,
US Air, United, and other airlines that started charging for a second checked bag waived the fee for people that booked flights before they announced the fee. Hopefully American will follow suit, but don't hold your breath.
May 21, 2008
1:42 p.m.
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MtnRooster writes:
Delta was charging people who had booked earlier. Here is a story of one of them: http://consumerist.com/tag/complaints...
May 22, 2008
6:05 a.m.
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Vector049 writes:
This will translate into more delays and unsafe conditions as the herds of cattle opt to cram all their luggage and junk into the cabin.
May 22, 2008
6:33 a.m.
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Buckwheat writes:
$15.00 A BAG???????
Ah-h-h-h, what the hell....She's worth it!!!
May 22, 2008
6:45 a.m.
Suggest removal
Phoenix58 writes:
You know, I understand the rising costs of fuel and I understand needing to pass those costs on to the consumer. What I don't understand is why the airlines dont incorporate all of this into the cost of the ticket. Tell me exactly what it's going to cost me to get to my destination, don't add extra charges when I get to the counter to check in.
The airlines could easily put options in so the consumer could choose how many bags are to be checked, if they want a meal etc then give the final total for the ticket at the time of purchase.
I suppose that would be to logical.
May 22, 2008
6:53 a.m.
Suggest removal
nuclied writes:
Fly Frontier
May 22, 2008
7:10 a.m.
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rkymntpdlr writes:
I think they should charge a lot more, like around $50.00 per bag. So many people take WAY TOO MUCH when they travel. People can travel a lot lighter and efficient very easily, it's just that they won't unless they have too. Too many cry babies out there, now that they have to leave several pairs of shoes and a different change of clothes every day at home. Too bad.
If they need the other articles, then ship it to your destination.
May 22, 2008
7:53 a.m.
Suggest removal
SockRayBlue writes:
I gave up on the airlines years ago. When peanuts entered the picture was when I bailed out. passengers became surly and impolite. The airlines started to treat people like cattle. I built my own airplane and flew whenever I wanted. Since then I have no reason to fly anywhere and certainly won't expose myself to the common riff-raff found in airports today.
Regarding the surcharge for carry on baggage? A short story is called for: I recently needed a small engine and ordered it from a company about 200 miles away. The freight amounted to $130 plus (at the drivers discretion)another surcharge of $40 added if it was deemed that the delivery was made to a residence. I drove and it cost me $30 in gas. In essence I believe that the public is being gouged from every direction by those making an attempt to get rich at the expense of another. Greed takes many forms and those seeking a reasonable profit are far above those trying for a quick buck. My only hope it that the greedy are quickly forgotten and soon fall by the wayside in life.
May 22, 2008
7:59 a.m.
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jbartholomew42 writes:
Yeh, and now flights are going to be delayed, and 90 lb. people try to store a 50 lb. carryon bag. The good part of this is the "bus" people will start taking the bus again.
May 22, 2008
8:17 a.m.
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Scott writes:
I'm a Foamer (train nut), experience a land cruise, ride Amtrak.
Scott
May 22, 2008
8:30 a.m.
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MarineGrunt writes:
Market economy... don't like it, fly the next guy!
May 22, 2008
8:35 a.m.
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adtypeanddesign writes:
I fly American generally twice a year and have frequent flier miles with them. I constantly observe people with too big of a bag trying to cram it into the overhead bins. It's only going to get worse with this bag charge. It's not just $15, think $30 for the round trip.
I agree with several others; just raise the price of the ticket. If American wants to raise revenue a different way, they should be charging for the Cokes and snacks on the cart that takes up the valuable aisle space.
May 22, 2008
8:45 a.m.
Suggest removal
robinbird666 writes:
From a marketing perspective, this is the dumbest idea EVER - - and a quick review of the RMN survey on this issue illustrates the point.
It is a given that people will now carry on too much and the airline can only blame themselves. I feel sorry for people for whom American is their primary hub carrier.
Customers would have accepted a fuel surcharge added to their original ticket - - I think we can all acknowledge what's happening to fuel costs.
But naming the increase a "first bag fee" telegraphs to consumers that it will NEVER go away, leading people to choose other carriers.
May 22, 2008
9:40 a.m.
Suggest removal
JustSayin writes:
"I constantly observe people with too big of a bag trying to cram it into the overhead bins."
I'd like to see the airlines and their boarding people enforce their existing rules on carry-on size and number of bags. I routinely see people flaunt the size and number restrictions (i.e., take on two largish carry-ons, or a carry-on and a shopping bag full of stuff, and still take a personal bag (purse or computer bag.....).
But what I would really prefer is honest pricing right up front "$XXX.xx is what it will cost to fly you from DEN to where ever with one bag of checked luggage......"
May 22, 2008
10:16 a.m.
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Ztliano writes:
Good thing AA doesn't fly out of Denver a lot.
May 22, 2008
10:19 a.m.
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temurlan writes:
rkymntpdlr, sorry but that spew was a load of crap.
This is going to mean that those who get on the plane first get to stow their carry on baggage. First class, business class and those with more than 60000 miles on AA will rule the day. If you are in Seating #2 or below, forget about it.
Of course, you can also forget about carry on stowage if you have any lotions or liquids. If you do, you are forced to check your bag.
This sounds like a really complicated, customer annoying and delay creating solution. I would have no problem if the just added $15.00 to the price of my ticket and kept things business as usual.
May 22, 2008
10:24 a.m.
Suggest removal
Buckwheat writes:
Until Southwest starts doing this I'am good to go. I heard they'll knock off an extra 20 if YOU can fit in the overhead. Which actually has more room than some of the seats I've sat in.
May 22, 2008
11:26 a.m.
Suggest removal
Radar writes:
I found this on their Web site. The Question Asked was "Do All customer have to pay to check a bag?"
The following customers will not be charged a service fee to check a bag provided the bag is within the weight allowance:
For the first checked bag, customers who buy a ticket before June 15, 2008, or who fly before June 15, 2008
For the second checked bag, customers who purchased a ticket before May 12, 2008
Customers originating travel in the U.S., U.S. Virgin Islands, Puerto Rico or Canada and traveling to an international destination beyond the U.S., U.S. Virgin Islands, Puerto Rico or Canada
Customers originating travel outside the U.S., U.S. Virgin Islands, Puerto Rico or Canada and traveling to an international destination
Customers who purchase full-fare tickets in Economy Class
Customers who purchase Business or First Class tickets
Customers flying on AA codeshare flights not operated by American Airlines, American Eagle or AmericanConnection®
Customers traveling on government or military fares
Military passengers on active duty
AAdvantage Executive Platinum®, AAdvantage Platinum® or AAdvantage Gold® members
oneworld Alliance Emerald, Sapphire or Ruby members
Customers flying on the same reservation as an AAdvantage Executive Platinum, AAdvantage Platinum or AAdvantage Gold member or oneworld Alliance Emerald, Sapphire or Ruby member regardless of frequent flier status or fare type (not applicable to group bookings)
AAnytime® Economy Class AAdvantage award tickets, MileSAAver(SM) or AAnytime First and Business Class AAdvantage award tickets
First and Business Class upgrades confirmed prior to check in
AAirpass travel
May 22, 2008
11:40 a.m.
Suggest removal
JB writes:
A lot of people here are saying that they would prefer if the added $15 to the price of a ticket! I hate that idea... I seldom check luggage, so that would be a bum deal for a lot of folks like me who take frequent short trips.
May 22, 2008
12:19 p.m.
Suggest removal
RickyLee writes:
Did American convene one of Critter's Blue Ribbon Commissions
to decide this? Sound's like something the guv would cook up.
May 22, 2008
12:22 p.m.
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RickyLee writes:
Check out the poll today. 75% say they'll find another airline before they pay this extortion. I will too, or take a few extra days off and take the train.
May 22, 2008
3:28 p.m.
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Blind_Pete writes:
So when everyone is carrying on, and the bins are full, and they tell you they have to check your carry on bag anyway, do they make you cough up $15 ? What if you refuse? Are they going to kick you off the plane? Plaintiff lawyers are drooling already!