Comments on: Why AA’s $15 Checked Bag Fee Is Fair

By: Tim K

Tim K — Thu, 24 Jul 2008 16:58:36 +0000

The fee was created to deter passengers from bringing large amounts of luggage because the weight hurts the gas mileage, and like it was said before, the airline industry wasn’t created to operate off of 140 dollars for a barrel of fuel.
This fee was also created to remain competitive with other airlines.

By: Judi O

Judi O — Thu, 22 May 2008 18:34:26 +0000

Has anyone given a thought to the fact that passengers are compelled to check bags because of security bans on carrying on supposedly dangerous items? Dangerous things like shampoo or hand lotion!!!

How does a family travel for a week’s vacation without checking bags? How do the elderly and/or handicapped lug their bags on board or up into the overhead?

By: Jeff

Jeff — Thu, 22 May 2008 18:11:05 +0000

First I want to say thanks for the comments. I really appreciate them. You guys raised some good issues.

Joe, I concur with your thoughts. I think the airlines are looking at ways of tinkering with consumer perception of price as much as anything. Do they have psychologists or just marketing people (or are those the same thing) who are advising them about this?

Joey, perhaps I over generalized. Even with the examples you gave, however, I still see the menu system (including gym membership options, which flavors of internet, cell and cable services I have, and travel). There is at least a better perception of some value being given for money paid in your examples.

Alan, the carry-on situation, as you point to, is about to be a nightmare for us and for the industry.

Aloha and mahalo,
Jeff

By: Alan Cima

Alan Cima — Thu, 22 May 2008 17:49:02 +0000

If they want to raise fees, why not charge for carry-on? That is competing for space in an already full cabin. That is slowing them down in turning flights around, which costs them. The baggage area is not very full, they have to keep paying people to put them on and off anyway.

By: Joey

Joey — Thu, 22 May 2008 15:57:52 +0000

What do you mean “We see it in virtually all consumer purchases we make.”??

The subscription or all-inclusive model is at least as prevalent as a menu one, whether that’s travel (cruises, all-inclusive hotels, tour packages) or the bills we pay every month: cell phone, cable, internet, the gym, etc., etc.

By: Joe Farrell

Joe Farrell — Thu, 22 May 2008 11:57:11 +0000

I disagree. So what if the industry was not ‘designed’ to work at $130/bbl oil? The ’structure’ works just the same with higher fares.

If it costs more to make widget A, then the company making widget A charges more for the widget or goes out of business.

If it costs more to transport a passenger from point a to b then the company providing the transport just needs to RAISE PRICES. If it cannot raise prices, it is not because it costs more, but because competitive pressure means there are more seats from a to b than there there is demand.

If it costs $100 to transport one from a to b, and the fare is $80, then EVERYONE loses money until there is only enough of supply to create a fare of $100 plus profit. The business cannot lose money and remain in business.

If airlines cannot raise fare then there is too much supply. Raising ‘fees’ raises fares - it just does it differently. A $15 fee does NOT equal the cost of transporting a 30lb bag from point a to b - it costs more to transport that bag from chicago to LA than it does to move it from Moline to Chicago. Yet, the fee is the same.

The FARE reflects the cost to move a person, for the most part. The bag fees need to do the same.

By: Pua

Pua — Thu, 22 May 2008 00:40:31 +0000

I read other discussion at forums and travel blogs about this newly introduced baggage fee by AA. Naturally, most everybody complaining. I don’t like it either but I agree with you we probably can anticipate it coming with the rest of the airlines as well. They got to find a way to survive! Look at Aloha Airlines and see what happens otherwise. Pua