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.

Unexpected Consequences

As previously mentioned, my wife and I were forced to cancel our long-planned getaway to Florida last week because of an unscheduled series of extreme weather events - events that the insurance companies like to call "Acts of God".

So I feel empathy for the million or so people who have already had their travel plans disrupted or (more likely) ruined because of the volcano eruption in Iceland. The ash plume from that erupting hell-hole consists of fine pieces of rock and glass that can shut-down a jet engine and etch a windshield and make it useless. The plume is affecting many European airports and some scientists are predicting a cold summer as the volcanic dust in the stratosphere blocks the sunlight. (Drat! Another factor that will undoubtedly impact my tomato harvest in August.)


It's bad enough to be forced to stay at home, unable to start your trip, but consider the agony of being stranded at Heathrow or DeGaul airport, waiting for a flight back to the states. The hassle of getting re-booked on future flights is overwhelming because those flights are already fully booked by millions of other Spring travelers who are returning from their vacations. The horror stories of travelers who cannot get here from there evoke a sense of dread.

The old saying that the gods laugh at our plans seems apt.
And, if you weren't already annoyed enough by the vulnerability factor, physical discomfort and cost of air travel, the next trend in passenger gouging should send you over the edge. is to charge you for your carry-on luggage. Huh? Not checked baggage but carry-on! Up to $40.
Spirit Airlines has announced that they will charge up to $45 per carry-on if you book after August 1, 2010. Public outrage is building. Several congressmen have rushed opportunistically to the microphones to announce bills that would ban such fees by airlines. In one case, Sen. Charles Schumer sees an opportunity to raise taxes on the airline by charging an excise tax on fees. Hey Chuck, excise taxes are paid by customers. Instead of penalizing the Airline, Shumer's bill would add to the cost of the fee. What a dolt!

I hate being nickel and dimed as much as anyone, but I can see a valid argument in charging for services used. If I don't check a bag, Maybe I should get a discount. If I don't need a lot of legroom, maybe I should pay less than the fat and tall folk. Itemizing these costs seems sensible. The problem is that there is no list or set price for a seat on an airplane. The airline executive goniffs adjust the basic price based on what they think the market will bear.

Some thing ought to be done, but I do not think the government making laws about what the airlines can charge for. This is not the role government should be playing. The government needs to worry about safety and security. Let the customers show the airlines what they are willing to bear in terms of fees and charges.

Spirit Airlines is taking a lot of criticism for their over-the-line announcement. Most of the major airlines are vowing that they will not follow suit. Something tells me that the carry-on fee will go away and fast. Ironically the Spirit ads will then say "See, we listen!"