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4/29/2010

Rethinking the Overhead Fee Thing

In the WSJ today there was a piece in the Personal Journal section titled "What's Behind New Baggage Fees." Middle Seat columnist Scott McCartney does a nice job explicating the thinking behind the Spirit Airlines plan to charge for carry-on luggage.

In short, Spirit claims that they charge less than competitors for the basic ticket, so they feel justified in charging those passengers who use "extra services" such as storing carry-on luggage in limited overhead bins - higher fees than the rate for normal checked baggage. Yes, you heard that correctly: checked baggage will cost less than carry-on.

If you have been in an airplane during the past year, you know what a nightmare it has been. Every flight I have been on was overbooked. The gate personnel do not enforce the boarding plan, so if you follow the rules, by the time you get to your seat in 11B there is no overhead space available anywhere near your row. People who formerly checked their bags are now stuffing them into overhead bins.

Flying is akin to torture. Cruel and unusual punishment for wanting to be somewhere where the ocean water is warm.

I think that airline executives must have the cruelest hearts of any industry leaders. The braniacs at Spirit have installed no-recline seats in their new Airbus A320s. Ah good! you think, but no, they didn't do it for your comfort (so you would not have somebody's dreadlocks in your face for 4 hours). No! they did it so they could squeeze an extra 20 seats into the sardine can.

They say they will not back off the fee, despite the bad press, and the promise from major carriers not to follow suit. Spirit claims the new pricing policy will reduce gate delay. Which should make everyone happy. Especially the sardines that are packed-in nose to tail.

I have asserted that the real problem with airline ticket pricing is the failure to establish a set price for a basic seat. It should be based on some percentage of the fixed cost to take the plane from point A to point B. Right now it is a veritable auction where affluent travelers can outbid the cost-sensitive rabble for prime seats (at prime time).

I would like to see a standard fare (as they have on public transportation or a movie theater). I have no problem with the air carrier exercising their discretion to charge fees. As long as everyone is paying the same fees for the same service.
The free market will place the cap on charges, as long as the government sticks to regulating public safety and security. I am planning to stay home for a while and see what happens.

4 comments:

Rick B said...

If I'm not mistaken, airlines like Southwest and JetBlue have been quite successfully charging a standard fare for years - and don't charge for checked luggage, much less carry-on bags. It's odd that the airlines that have variable, ever-changing fees are the ones that lose vast sums of money year after year. Makes me think the people who run these companies are more interested in being in the airline biz than running a profitable business.

DEN said...

I would dispute the assertion that Jetblue has a "standard fare". They are like the others in that they charge more for a seat when there is a high demand. Jacked up prices for popular destinations and flight times (eg school vacation periods). I don't want the government involved, mind you, I want the airlines to make it a pleasant experience, regain our trust and even loyalty. Southwest has probably done the best job in that area.

Rick B said...

I guess I am mistaken having traveled on these arilines only once each. So the most succeesful airline, Southwest, stands alone. Curious.

DEN said...

There was an interview with JetBlue CEO today in Globe. JetBlue is the top carrier at Logan Airport in Boston. Barger says that the worst seat in a JetBlue Airbus 320 is still better than the best seat (in coach) of any of his competition. He justifies the charge for extended legroom as "an enhanced experience."