All's fare in unbundling airline fees
You may get exactly what you pay for -- and nothing more -- when flying major airlines.
American Airlines plans to break down the cost of a flight into basic airfare and may charge additional fees for beverages, blankets, seat selection or even changing planes.
The airline industry calls it "unbundling." The new pricing will give travelers lower base fares with the option to buy only the extra services they want.
American Airlines led US carriers in charging for checking baggage and some travelers may see the new fares as just another way to suck more money out of their wallet.
But unbundling isn't new. Cable companies have used this tactic for years to offer premium movie, sports and pay-per-view events for an additional fee. Airlines believe unbundling will allow them to increase revenue and offset higher fuel prices.
United says planned fees will generate about $700 million a year. Northwest says baggage charges will increase revenue $150 million to $200 million a year. Continental looks for an additional $100 million from a new fee for checking the first bag – and that doesn't include fees for additional baggage.
However, Southwest Airlines, a consistently profitable carrier, avoids most of the fees charged by competitors and uses this fact in its advertising. But the airline will soon ask customers about special fees and the carrier doesn't rule them out in the future.
The new pricing structure for US carriers will allow passengers to save money, but it will also require more homework and additional clicks when booking a flight online. Here's betting most passengers will put up with a little inconvenience to save money.
But one thing is almost certain: Fees for service, including mundane things that were once included in the price of the ticket, are here to stay - even if fuel prices fall.
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Comments
I can agree with unbundling some goods and services offered by airlines. But such things as water is nonsense. There have been many articles written by compentent medical authority that say that water, or some type of non-alcoholic beverage, is a necessity on any flight over an hour. It is not always easy to bring liquids on board because of security restrictions, and availability after passing through security check points.
Case in point: I was flying from Kansas City, MO, recently. I had to empty my water bottles to go through security, and there was no water available on the secure side to refill the bottles.
If we could be assured that cabin temperatures would always be at a comfortable level, I would say that blankets could be done away with. But we all know that is not always the case. So now we have to travel with our own blanket, or pack sweaters into our one carry-on bag, or carry a wad of cash to pay for these items.
The kicker now is that some airlines wil not even accept cash. So we are put at the mercy of the credit card companies. I can imagine the day when we purchase a cup of water on a plane using a credit card, and wind up being billed for a blanket, a meal, and who knows what else. Try to fight that one when we can't even go to small claims court against an airline.
Airlines are NOT cable TV companies. I don't care that I don't get premium channels so that I can waste even more time in front of the boob tube. But I do care that I get some liquid on a flight, that I can take my luggage with me and that it arrives with me, and that I can receive some nourishment and comfort on a flight.
If you do the math, you will find that all these extra fees in the name of "fuel costs" do not even begin to offset what the airlines lost by not being able to hedge their expenses. We are again being asked to pay for their lack of foresight.
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