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U.S. Airlines collected $6B in baggage and reservation change fees last year

Posted on 5/14/13 at 12:00 pm
Posted by rickgrimes
Member since Jan 2011
4178 posts
Posted on 5/14/13 at 12:00 pm
U.S. airlines collected $6B in baggage fees (+3.8% Y/Y) and reservation change fees (+7.3%) last year as the industry's model continues to shift. This year looks like it could bring airliners an even bigger haul with American Airlines (AAMRQ.PK), Delta Airlines (DAL +1.7%), United Continental (UAL +1.2%), and US Airways (LCC +2.4%) all raising their domestic flight fee change 33% higher to $200 while Southwest Airlines (LUV +0.5%) adds some cancellations fees of its own.

Link: LINK
Posted by AUtigerNOLA
New Orleans, LA
Member since Apr 2011
17107 posts
Posted on 5/14/13 at 12:23 pm to
I hate paying baggage fees.
Posted by Teddy Ruxpin
Member since Oct 2006
39545 posts
Posted on 5/14/13 at 12:37 pm to
quote:

I hate paying baggage fees.


Stop letting your wife pack so much shite.
Posted by evil cockroach
27.98N // 86.92E
Member since Nov 2007
7445 posts
Posted on 5/14/13 at 12:40 pm to
they really need a scale that you step on with yourself, carry-on, and checked bag. What ever your total weight is, that determines what you pay. Don't like it? Lose some weight!
Posted by AUtigerNOLA
New Orleans, LA
Member since Apr 2011
17107 posts
Posted on 5/14/13 at 12:40 pm to
Its pretty frickin annoying though having to pay $50 a bag round trip.
Posted by LSURussian
Member since Feb 2005
126843 posts
Posted on 5/14/13 at 12:42 pm to
quote:

U.S. Airlines collected $6B in baggage and reservation change fees last year

Okay, is that bad or good?

I prefer unbundled services of all kinds. I just hope McCain's cable unbundle bill gets passed and signed into law.
Posted by TheDiesel
Phoenix
Member since Feb 2010
2608 posts
Posted on 5/14/13 at 12:45 pm to
The only time I have to pay for bags is when I go snow skiing and bring my skiis. Luckily my Amex reimburses me for $100 worth.

I'm ok with the fees to an extent. Extreme examples like Spirit are not worth it.
Posted by Bmath
LA
Member since Aug 2010
18664 posts
Posted on 5/14/13 at 1:11 pm to
I understand the need for fees because reserving a spot prevents someone else from booking a flight. The airline may then have a hard time selling that ticket last minute.

However, getting charged a hundred bucks to switch flights several weeks out is ridiculous.
Posted by chauncey1
Member since May 2010
291 posts
Posted on 5/14/13 at 1:49 pm to
I like the idea of paying by weight, but if you are under a certain weight they should put two people in one seat. You are still occupying seat capacity/volume and paying less. Another paying customer could have purchased that extra space.

Don't like it, pay for your additional space.

A 747 weighs 347,000 lbs empty. If you have 100 passengers that carry an extra 100 lbs each, that's 10,000 lbs. That's about 2.8% of the weight.

How about you divy up the weight of the plane by passenger and then add the persons weight and baggage in? That would be a little more fair.

Maybe the airlines should look at trying to drop a little of the 347,000 lbs and improve efficiency? Materials/ Flotation devices over land?

I'm really just pissed at a recent baggage fee and cancellation fee. Screw the airlines other than SWA.
Posted by sneakytiger
Member since Oct 2007
2471 posts
Posted on 5/14/13 at 2:14 pm to
quote:

Maybe the airlines should look at trying to drop a little of the 347,000 lbs and improve efficiency? Materials/ Flotation devices over land?

I remember seeing this on a CNBC "documentary" on American Airlines... the airline even looks at the profitability of the various magazines each plane carries (Skymall, etc) relative to the implied cost of fuel to carry it. If there is money to be saved by taking something off the plane, they take it off the plane, within reason or FAA regulation of course.
This post was edited on 5/14/13 at 2:15 pm
Posted by AUtigerNOLA
New Orleans, LA
Member since Apr 2011
17107 posts
Posted on 5/14/13 at 2:35 pm to
quote:

I like the idea of paying by weight,


I guess thats ok. I just feel the baggage fees are more of a nickel and dime technique. Just really pisses me off but just have to DWI.
Posted by BACONisMEATcandy
Member since Dec 2007
46643 posts
Posted on 5/14/13 at 4:00 pm to
quote:

I hate paying baggage fees.


I always get two checked bags for free... any when I get upgraded I get 3 bags
Posted by LSUAfro
Baton Rouge
Member since Aug 2005
12775 posts
Posted on 5/15/13 at 12:53 pm to
quote:

. I just hope McCain's cable unbundle bill gets passed and signed into law.
Ah yes. More government regulations telling private companies how to run their business. That's what we need.
Posted by BACONisMEATcandy
Member since Dec 2007
46643 posts
Posted on 5/15/13 at 12:58 pm to
quote:

Ah yes. More government regulations telling private companies how to run their business. That's what we need.


I agree with this most of the time. But it's next to impossible to startup new types of certain business. A few off the top of my head:

-Cable TV provider
-Cell Phone Network Provider
-Credit card company

None of those business operate under a "free market" IMHO
Posted by LSUAfro
Baton Rouge
Member since Aug 2005
12775 posts
Posted on 5/15/13 at 1:36 pm to
quote:

But it's next to impossible to startup new types of certain business. A few off the top of my head:
So these companies that spent millions and millions on infrastructure with complete uncertainty of what technology will do to their products should change their business model because the government doesn't like it?

Come on...You can't pick and choose what you would like to government to handle up on for you because it most suits you. Slippery slope.

You don't want a CC, cell phone, cable, or internet, don't buy it. Stay out of private industry. Gubment already gives free internets at the library and also provides subsidized land line to homes.
Posted by BACONisMEATcandy
Member since Dec 2007
46643 posts
Posted on 5/15/13 at 1:46 pm to
That's not what I am saying. I am merely pointing out it is not a true free market when it comes to those entities. Someone cannot merely decide to start a business like one of these.

Competition is what drives our free market system and if there is no competition they are going to charge whatever they feel like.

The gov't does this all time. Do you think gas stations should be able to increase the price of gas before a hurricane? There are laws against price gouging... I don't see any difference between the two.

quote:

You don't want a CC


The consumer is not the one who is hit with the charges in this field... the merchant is.
This post was edited on 5/15/13 at 1:47 pm
Posted by LSUAfro
Baton Rouge
Member since Aug 2005
12775 posts
Posted on 5/15/13 at 1:54 pm to
quote:

I am merely pointing out it is not a true free market when it comes to those entities.

Competition is what drives our free market system and if there is no competition they are going to charge whatever they feel like.
High barriers to entry doesn't mean it's not a free market. There is competition and anybody with the money can enter the party freely just as Google is now entering the cable/data provider market.

quote:

The gov't does this all time. Do you think gas stations should be able to increase the price of gas before a hurricane? There are laws against price gouging... I don't see any difference between the two.
In the midst of panic and disaster for the well being of a community, the government probably should intervene, and they do. There is a definite distinction between the two.

quote:

The consumer is not the one who is hit with the charges in this field... the merchant is.
I agree they suck, but the merchant doesn't have to take them and I know many merchants who don't and I don't blame them.
This post was edited on 5/15/13 at 1:56 pm
Posted by BACONisMEATcandy
Member since Dec 2007
46643 posts
Posted on 5/15/13 at 2:24 pm to
quote:

In the midst of panic and disaster for the well being of a community, the government probably should intervene, and they do. There is a definite distinction between the two.


So you'd be ok if all Oil & Gas Companies decided they were going to start charging more for the price of gasoline and essentially set the price?

quote:

quote:

The consumer is not the one who is hit with the charges in this field... the merchant is.

I agree they suck, but the merchant doesn't have to take them and I know many merchants who don't and I don't blame them.


I agree whole heartedly with you and respect any business not willing to accept credit/debit cards. However, if you don't think they lose out on a ton of business you are sadly mistaken. You and I are the exception to the rule.

quote:

More government regulations telling private companies how to run their business


Back to the point at hand... 999999/1000000 I agree... but there are some instances (which you even agreed) where regulations are needed.
Posted by Blue Velvet
Apple butter toast is nice
Member since Nov 2009
20112 posts
Posted on 5/15/13 at 6:51 pm to
quote:

I just hope McCain's cable unbundle bill gets passed and signed into law.
Sarcasm?
Posted by LSUtoOmaha
Nashville
Member since Apr 2004
26571 posts
Posted on 5/15/13 at 6:57 pm to
quote:

The consumer is not the one who is hit with the charges in this field... the merchant is


Which means both the consumer and the merchant are.
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