Tuesday, April 22, 2008

Airlines' New Second Bag Policy

To help offset rising fuel costs, five major US airlines (United, Continental, US Airways, Northwest and Delta) will start charging coach passengers as much as $25 in May to check in a second piece of luggage.

As the airlines struggle to stay profitable, fees for amenities previously included in the ticket price are on the rise. Travelers are paying extra for everything from food to bulkhead seats that offer extra legroom.

Not all passengers will be required to pay fee for their second bag though. The checked bag charge will be waived for the first/business class passengers, travelers who reach preferred status with the airline and those who participate in its frequent flier program. These passengers will still be able to check in a second bag for free. As more and more business customers traveling in coach, the fees will affect business consumers as well as leisure travelers. Readers are encouraged to check with individual airlines for details of their new checked bag policy.

United Airlines said a quarter of its customers check a second bag and it expected $100 million a year in new revenue and cost savings from the baggage charge. US Airways spokesman Morgan Durant said about 8% of US Airways customers check more than one bag and the charge is expected to generate $75 million in revenue and cost savings for the Company each year.

"Some critics may call this another example of airline customers being 'nickel and dimed' for services that used to be provided as part of the flying experience," US Airways President Scott Kirby said in a statement to its employees. "But the airline industry of 2008 is very different from the industry of 1998 or 1988, and we have to be realistic — and innovative — about our product."

As price-sensitive passengers filling up overhead-bin space with more carry-on bags, it certainly does not leave much room for those passengers who pack lightly for their trips and board the aircraft late.

Air travel becomes a way of life for most of us. As fuel prices rise, things that, we take for granted for so long, are either getting so expensive or taken away from us. Free second checked bag will soon become a thing of the past. What is next? It certainly does not take long before air travel becomes so expensive that only a very wealthy, elite few will be able to afford it.

As simple as it looks, the checked bag policy will certainly have a domino effect on the way we'll do things and conduct businesses. For better or worse, it certainly will change the way we view air travel. This is particularly true for those who travel for a living. Will they still travel as much? Time will tell.

Comments?

No comments: