Airlines add fees, and some fees on top of fees

[Harvey Specter]

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.

• 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.

[Eastwood]

Thats too bad really. I can get cheap tickets through my work.

Working for an airline sure has its perks.

[03aspec]

allegiant is still dirt cheap though, my uncle and 2 cousins came from california yesterday. they flew from oakland to bellingham @ $100 a head, taxes everything in. my uncle talked to the couple sitting next to them on the plane, and they apparently only paid $80 a head taxes in. travel is actually cheap right now.

[Carl Johnson]

"All they're saying to coach-class travelers is 'We really haven't gotten enough from you.'"

Oh geez thanks assholes. Just because some airline locked in to last year's high jet fuel prices and is now hurting their earnings power. and the whole mexican swine flu crap fuked them over pretty good they are going to take it out on the rest of us.

[Meowjin]

United is damn cheap, and is good value for what you get. I'd fly with them again.

[slammer111]

I dunno why ppl pay for all these luxuries. The point of an airline is to get you and your luggage from point A to point B. IMHO they shouldn't be charging for ESSENTIAL stuff though, like check in.

And I can't believe that Spanish airline is offering that 30 Euro "guaranteed empty middle seat" deal. 1 empty seat = 1 less ticket! Unless that flight cost less than 30 Euros, they're honestly shooting themselves in the foot.

Oasis was dirt cheap, but they wanted $3 for a package of 2 chocolate chip mini-cookies. I just went hungry until the next meal time. No big deal.

[ilvtofu]

Yo dawg I heard you like fees, so we put fees on your fees...

[BNR32_Coupe]

Yeah umm.. things cost money, so expect to pay for things when things are needed

[metal]

Air travel now is still incredibly cheap, so people shouldn't be complaining that much. Take a look at some ticket prices from the 80s or earlier compared to now.

[ilvtofu]

For 30 euros, travelers can choose an aisle or window seat and guarantee that the middle seat will remain empty. hmm only 30 euros for an extra seat? sounds reasonable

these prices aren't that bad I guess, They'll never get the C-Lai's with these fees though

[bcrdukes]

Originally Posted by slammer111

I dunno why ppl pay for all these luxuries. The point of an airline is to get you and your luggage from point A to point B. IMHO they shouldn't be charging for ESSENTIAL stuff though, like check in.

How often do you fly?

I'm sure people like Jah and myself fly enough to understand that these so-called "luxuries" are well worth the price, especially if you fly on a regular basis. For the regular schmuck that travels, what, once a year on a plane, could care less but if you're flying at least once or twice a week, you'll realize that every little bit of space is worth it and almost, much needed.

[ImportPsycho]

I ROFL at flight centre ads

$99 TO VEGAS +$299 tax and fees

[JesseBlue]

airline bailouts are next...then management will "need" millions and millions of bonus and the ceo will say "we need it to become competetive"...sheesh...

[Meowjin]

Originally Posted by bcrdukes

How often do you fly?

I'm sure people like Jah and myself fly enough to understand that these so-called "luxuries" are well worth the price, especially if you fly on a regular basis. For the regular schmuck that travels, what, once a year on a plane, could care less but if you're flying at least once or twice a week, you'll realize that every little bit of space is worth it and almost, much needed.

agreed. Coming back from HK united had business class for an extra 400, payed it, and got the best sleep i've ever had on a flight.

[BlackV62K2]

Originally Posted by ilvtofu

Yo dawg I heard you like fees, so we put fees on your fees...

Bastard beat me to it lol. Needs a pic of xzibit though haha.

[Soundy]

It's great news fodder, but fees and extra charges and what not really aren't that big a deal unless you calculate in the cost of the base fare.

Which is a better deal - an airline that charges $300 for a flight straight-up... or one that charges $200, plus a check-in fee, a baggage fee, a fuel surcharge, charges for your pillow and food, etc. if all those fees only total up to $75? Sure it looks nasty to see all those fees (ZOMG, $75 in fees on a $200 ticket?? Insanity!), but the first airline is just rolling all that into the cost of the ticket, then tacking on a little extra for themselves, and even with the stand-alone fees, you're still paying less... plus it gives you the choice of opting out of some of the fees - check-in online, bring only your carry-on, and do without a pillow and in-flight meal, and save yourself even more. With the first airline, it's still $300 whether you want a pillow or not.

[!LittleDragon]

Originally Posted by ImportPsycho

I ROFL at flight centre ads

$99 TO VEGAS +$299 tax and fees

lol... wtf? I just got a package for 2, 3 nights at the Luxor for $307 TOTAL

[nipples]

Originally Posted by MajinHurricane

agreed. Coming back from HK united had business class for an extra 400, payed it, and got the best sleep i've ever had on a flight.

i was offered the same price upgrade from TW to korea...2freakn hours! they must be insane to think i'd opt for that!! i cant even finish a movie in that amount of time with their announcements.

[Harvey Specter]

China Eastern offers crazy upgrades at the airport for business class.

[Marco911]

^^You'd be crazy to fly China Eastern. I flew them once from Hong Kong to Shanghai, and the food was not fit for human consumption.

[Harvey Specter]

I had to fly it from Vancouver all the way to Mumbai 2 years ago.....it was one of the worst flights I had ever been on and I was in business class!

[hotjoint]

everyone finds a way to jack you somehow, this isnt surprising at all

[taylor192]

Originally Posted by Soundy

It's great news fodder, but fees and extra charges and what not really aren't that big a deal unless you calculate in the cost of the base fare.

Which is a better deal - an airline that charges $300 for a flight straight-up... or one that charges $200, plus a check-in fee, a baggage fee, a fuel surcharge, charges for your pillow and food, etc. if all those fees only total up to $75? Sure it looks nasty to see all those fees (ZOMG, $75 in fees on a $200 ticket?? Insanity!), but the first airline is just rolling all that into the cost of the ticket, then tacking on a little extra for themselves, and even with the stand-alone fees, you're still paying less... plus it gives you the choice of opting out of some of the fees - check-in online, bring only your carry-on, and do without a pillow and in-flight meal, and save yourself even more. With the first airline, it's still $300 whether you want a pillow or not.

If you're flying international.

Since there's only 2 airlines in Canada, they haven't reduced ticket costs then added fees, they just add fees.

I was flying once/month for the last 2 years, the crazy price increases last summer (and again this summer) has reduced my flying to 1-2 times/yr. Its less worth it since I could fly cross-country for ~$400, now I have trouble finding tickets < $700.

Airlines have to realize flying is a luxury, and there's lots of us who will cut back if they keep up the non-sense.

[Soundy]

Originally Posted by taylor192

Airlines have to realize flying is a luxury, and there's lots of us who will cut back if they keep up the non-sense.

And yet they have to strike a balance between keeping it affordable, and still making enough money to operate.

When the industry in the US was deregulated years ago, there was a virtual flood of little cut-rate airlines popping up almost offering to fly people for free... and nearly all of them were gone within a couple years, because it costs a fucking LOT of money to run an airline.

Forget skyrocketing fuel costs, there are all other operational costs, the crew wages, they have their own fees and taxes and licenses to pay... and every stage along the way, everyone wants their own compensation and surcharges and way to make money. Rising fuel prices also means it costs more to run the baggage trucks and ground service vehicles, so the airport or the company operating those has to raise their rates to the airline, who then needs to factor that into their ticket prices... and so on.

You did notice, BTW, that WestJet dropped their "fuel surcharge" after the fuel prices came back to earth last year? As did BC Ferries, as did a lot of other services and businesses that found it necessary to add the thing in the first place.

[Eastwood]

On all international flights Air Canada offers free booze to all passengers. As cool as this is, how much cheaper could they sell there flights if they didn't offer this service.