AA should go to a fare structure where 225 pounds (total weight passenger + luggage) is covered by the base fare. Anything over pays more. Fit passengers are subsidizing fat or obese ones. I'm sure a lot of fat or obese people will claim (or at least delude themselves into thinking) they're fit, but the scale doesn't care. AA could set up new check-in lines, where you and your luggage step on a scale, an invoice pops up for the amount due and you swipe your credit or debit card. Luckily I sit in the front half the time, so my exposure to flab on the economy armrest is reduced. Circumference at stomach might be more accurate, but the number of required check-in potbelly checkers might be counter-productive.
Programs: ex-Eastern ex-lorenzo era CO ex-TWA ex-PanAM ex-NW-Plat now MMroach ex-UA1K AA EXP Hilton Diamond
Posts: 727
Quote:
Originally Posted by samftla
Not sure that this new fee for the first checked bag is going to last. The AP just reported that DL is balking..Here is part of the quote, "The planned fee on the first checked bag immediately ran into resistance. Delta Air Lines Inc. spokeswoman Betsy Talton said the Atlanta-based airline is considering all of its options in light of $130-a-barrel oil, but doesn't plan to match the $15 fee American announced."
Sam
Who cares what she sez. most airlines stock is hitting all time lows today. AA is doing something about it. Others will follow and those that dont will cease to exist. Buy your tickets now, I expect another fare increase too in the next 24hrs
Perhaps we are missing the proverbial forest because of the trees.
I would say def acto nothing, AA's capacity reductions will allow it to, raise fares
I was specifically referring to the bag check fee, which has dominated this thread. My supposition is that this is the way they will increase leisure fares without publishing a real increase. And lest we think that the increase in carry-ons will double overnight, remember that the TSA liquid lunacy will force most vacationers to check bags. There will be some increase, but I don't think it is armageddon like some do.
For the record, I oppose nuisance fees, and I would prefer to see ticket prices and routes adjusted to where the carrier can make money (while still providing me with miles and upgrades!).
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Like many others here, my concern will be how AA will control oversize bags. However, Ma and Pa Kettle typically carry liquids more than allowed so they will not get through security without being forced to dump the goods. And regular check in will become a nightmare with Ma and Pa Kettle arguing with the check in agent about paying the fee (particularly for JFK flights going south to MIA and the Caribbean). For elites, I think this is basically a non issue. (Capacity cuts and higher fares not withstanding.)
By the way, does anyone know the breakdown between MD80s and A300s being taken out of service.
What is it going to take to get our government to support high speed rail lines betwee major, heavily traveled cities ... Washington - NY - Boston ...
LA - SanFrancisco, etc.
Europe has them; why don't we?
Farm subsidies; a war; entitlements. What about our infrastructure?
The result is that overhead space will be completely impacted as passengers attempt to put their crap into carry-ons to skirt a $30 R/T fee. This is a change that is likely to cut into my Y legroom and will affect my quality of flight in a big way. Until other carriers match (we'll see) or this proves in time to be a non-issue, it is goodbye AA for me. (Yeah, not that they'll miss me, but I vote with my wallet.)
Uhh, sure. Some people said that in 1980. They were wrong. Check oil prices from 1986 if you disagree. Some said it again in late 1990 when Hussein invaded Kuwait. Once again, they were incorrect. See oil prices from 1997-99.
You may be right. Oil prices might never again collapse. Just like California real estate, up might be the only direction they ever take.
Some things to consider:
In 1980, China used very little oil. Ditto for India, Mexico, and the former Soviet Union.
In 1997-99 the case was the same. Plus the Asian market collapse led to sharp increases in supply.
The dollar was much stronger against other currencies in 1980 and 1997 than it is today.
Today, India, China, Mexico, Russia, etc. are gobbling up every spare drop of oil out there. The American "recession" means nothing to them; their economies are booming. Tata just introduced a $2,500 car in India. Expect even sharper increases in oil demand.
Cheap oil is to never return. Mexico said that in 5 years they will no longer export any oil due to homegrown demand. They are currently are third largest importer. Where is this new oil going to come from? In fact, we've most likely reached "peak oil," where there is less and less oil to be pumped from the ground.The book "Twilight in the Desert" is a good read about this - the results are very scary.
Staying OT, though, I might be wrong here, but I don't see UA charging for a 1st bag for non-elites. I think there is a Spirit Airlines or RyanAir stigma attached that just won't make this one stick. The second bag was easy, given that most people who travel domestically rarely check more than one bag. Not to mention that UA is already in the toilet for customer service, so I doubt they could get away with this (whereas AA has much better customer service). Plus with UA being the major carrier into leisure places like Hawaii, I don't think they could get away with charging for a 1st bag without a huge backlash.
An easy way to reduce capacity for AA (and ultimately increase fares) would be to reintroduce MRTC. UA has E+ not because they love elites, but it is also a very convenient way to reduce capacity.
At 1:10pm EDT AMR (American Airlines Stock) is down by 20% which in effect
cuts their cash value by 20%. Tough to hedge Oil when your cash position decreases. CNBC stating the stock was at $40 less than a year ago and is at $6.56 now. That is a big loss in cash value of the airline and the analysts saying NO ONE is going into airlines stocks and it is a question of how long before a number of airlines are back in bankruptsy.
Sure, I agree that Southwest has additional cost advantages (shorter turn times, higher fleet utilization, simplified fleets, single cabin, no pre-assigned seating, less senior payroll, no international service).
But unless you're advocating that UA/AA/NW/DL/US/CO all go emulate Southwest by getting rid of aircraft type, international service, premium cabins, pre-assigned seat, etc., I'm not sure continuing to talk about how great Southwest's business model will be of any substance.
Ironically, WN crews enjoy industry leading compensation: WN -vs- UA
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An easy way to reduce capacity for AA (and ultimately increase fares) would be to reintroduce MRTC. UA has E+ not because they love elites, but it is also a very convenient way to reduce capacity.
AA need not make that same mistake again with MTRC. The problem with that is that you couldn't differentiate the product and give elites a little boost. UA's E+ is a success story precisely because it wasn't "throughout coach."
Elites get it as part of their benefits. CHECK.
Other customers can buy it at various points if for an affordable fee. CHECK.
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The result is that overhead space will be completely impacted as passengers attempt to put their crap into carry-ons to skirt a $30 R/T fee. This is a change that is likely to cut into my Y legroom and will affect my quality of flight in a big way. Until other carriers match (we'll see) or this proves in time to be a non-issue, it is goodbye AA for me. (Yeah, not that they'll miss me, but I vote with my wallet.)
Huh? First of all, the O/H bins are already overflowing on most flights. Second, how can this cut into "your" legroom? Do you think that you will suddenly be required to let your neighbor's bag be stowed under your feet?
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When authorities warn you about evils of sex, there's an important lesson to be learned. Don't have sex with the authorities.
I could see an extra charge for a second bag, an overweight bag, but for the first bag? That cost needs to be built into the ticket. Come on.
Coming in on this thread late, so sorry to jump back to page 1, but...
I could not disagree more. I rarely check a bag, so charging me in the ticket for something that is subsidizing others' bad habits is where I'd cry foul.
Until other carriers match (we'll see) or this proves in time to be a non-issue, it is goodbye AA for me. (Yeah, not that they'll miss me, but I vote with my wallet.)
