American Airlines to trim schedule, boost baggage fees 8:54 AM CT
08:54 AM CDT on Wednesday, May 21, 2008
From Staff and Wire Reports
American Airlines will significantly reduce its 2008 flight schedule, increase baggage fees and retire at least 75 aircraft in response to rising fuel costs and economic concerns.
American’s parent company AMR announced the changes during its annual shareholder meeting Wednesday in Fort Worth. The reductions include an 11 to 12 percent cut in domestic capacity in the fourth quarter.
The airline is also adding a $15 fee for the first checked bag, according to Dow Jones Newswires.
"The airline industry as it is constituted today was not built to withstand oil prices at $125 a barrel, and certainly not when record fuel expenses are coupled with a weak U.S. economy," AMR Chairman and CEO Gerard Arpey said in a statement. "Our company and industry simply cannot afford to sit by hoping for industry and market conditions to improve.
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Last edited by aamilesslave; May 21, 08 at 9:16 am.
Reason: added DMN link
Programs: AA CK/EXP/3MM, BA Gold, PC Ambassador, HH Diamond, SPG Gold
Posts: 2,426
I understand the lag effect of not being able to raise prices as fast as costs go up but the high cost of fuel is a condition that over time will impact all maket participants equally and i would think the fares should go up to reflect this increase in the cost of doing business. I guess they think the demand won't be there at the higher fares.
On AA.com it says the first bag is free and the second is $25 (usual GOLD, PLT, EXP and full Y exclusions apply). Anyone know which it is, $15 for the first or $25 for the second?
They just haven't updated the site yet (which is stupid).
The first bag will be $15 and the second bag will be $25, both fees waived for elites and F and J pax.
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The thing I miss about Air Force One is they don't lose my luggage. - President George Bush Sr.
in the "how does this impact me" department...as an elite it is waived for the first bag, but what about the second bag? that charge, which was fairly new, was (i believe) waived for elites, will it still be?
Seems like it. Haven't read anything otherwise.
This thread should be merged into the main one though.
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The thing I miss about Air Force One is they don't lose my luggage. - President George Bush Sr.
Bravo to AAs management These steps were needed NOW they have taken bold steps quickly. Meanwhile UAs team sits on their thumbs
UA management had already announced a 9 percent reduction in domestic capacity for the fall. And UA was the one that started the $25 second bag fee, so not sure how UA's team is sitting on their thumbs.
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The thing I miss about Air Force One is they don't lose my luggage. - President George Bush Sr.
I recognize the need to cover costs, but wonder how all these new baggage fees will impact check-in time. It certainly seems to me that it could slow things down considerably, especially around peak holidays.
in the "how does this impact me" department...as an elite it is waived for the first bag, but what about the second bag? that charge, which was fairly new, was (i believe) waived for elites, will it still be?
I think that ValiantFlyer makes a good point that it will affect elites (even those who never check a bag) in terms of bin space for those who are non-elite and do normally check bags. Now it's really a case of "board early or else."
Of course, it may only be us FTers who are cheap enough to worry about $15 when the tickets are still relatively inexpensive
This is really disappointing. Yes, I'm EXP, it doesn't affect me, blah, blah, blah. But that's not the point. It's just not right. 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.
And for those who think it doesn't affect them, think about the huge increase in carry-ons we're going to see. And today elites are exempt. You never know in the future. Just wrong.
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New York to London via Bangkok....Is there really any other way?
AA is merging their product line so when 50% foreign ownership is allowed it can be renamed: RyAAn
next step point to point bags only, no final destination routing!
What about tickets purchased before either of these dates. For example, I booked free tickets to Hawaii for next February the end of March . . . . .
The DOT has recently issued rules that changing such conditions for a ticket after it is bought would be deceptive marketing, so it is unlikely any airline would try and fight that.
Hmmm... first the updated baggage policy for Eagle, then this announcement.
I wonder how AE will deal with everyone that will want to gate check/valet their bags to avoid the checked baggage fee? Will AE AAgents be using the OSR (onboard sales recorders) at the gate to collect a charge?
IMO, good business move, though, given the cost structure to operate. I don't like it ... but I also don't want to contemplate my preferred carrier going into bankruptcy or solvency.
