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.
Actually, I would argue that Southwest started this trend, of course they started charging for the third bag and all the legacies moved to start charging for the second bag shortly after that announcement, they didn't want to be seen as offering the same type of service as WN I guess.
Location: Rural Northwestern Virginia - IAD Home Airport
Programs: Lufthansa, AsiaMiles
Posts: 85
Quote:
Originally Posted by pauleeepaul
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.
But why don't 1 or 2 airlines try it and see? To me this is basic business. Raise prices until demand slows/stops. That is the only way I can see any of the airlines finding the "true" price point, we as consumers, are willing to pay. If all flights are full now, prices are too low and need to be raised immediately.
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.
And the subtle and sometimes silly UA cheerleading continues
Programs: AA PLT, SPG PLT, Marriott Silver, Avis First
Posts: 261
Quote:
Originally Posted by abouna
What about tickets purchased before either of these dates. For example, I booked free tickets to Hawaii for next February the end of March . . . . .
From the AA website:
"
Customers who purchase domestic economy class tickets on or after May 12, 2008 but before June 15, 2008 may check one bag for free and check a second bag for $25 each way. Customers who purchase domestic economy class tickets on or after June 15, 2008 will be charged $15 each way for the first checked bag and $25 each way for the second checked bag."
But why don't 1 or 2 airlines try it and see? To me this is basic business. Raise prices until demand slows/stops. That is the only way I can see any of the airlines finding the "true" price point, we as consumers, are willing to pay. If all flights are full now, prices are too low and need to be raised immediately.
One airline has already done this, Southwest has been profitable for 68 straight quarters and 35 straight years. Obviously it is possible for a US airline to price their product appropriately and still make money, but only one US airline has implemented an appropriate business strategy to be able to do this.
Programs: NWA Platinum, HHonors Diamond, SPG, YX, AA
Posts: 6,028
Wow.
I'll guess that US Air, United or both follow suit within 5 days. That will lead to a match by all the majors, except Southwest who will launch a new advertising campaign about how the other airlines nickel and dime you to death....
I haven't checked a bag in years for business travel, but as a parent who needs to often check a bag AND a car seat, this will hit traveling familles the hardest.
I don't remember which Flyertalker has the signature I'm thinking of, but as they put is so well: "This game is not as fun as it used to be."
Programs: AA PLT, SPG PLT, Marriott Silver, Avis First
Posts: 261
Quote:
Originally Posted by miamigrad
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?
.
So, does a gate checked bag on Eagle count as a checked bag with this policy?
From the AA Website:
Q. Does this bag policy apply to American Eagle flights? What about AmericanConnection® flights?
A. Yes, this policy applies to American Eagle and AmericanConnection flights.
After past experience with these types of announcements, any idea how long it takes for AA.com schedules to reflect the changes? I'm curious about NorCal service, i.e. will SJC or SMF follow OAK into oblivion??
So, does a gate checked bag on Eagle count as a checked bag with this policy?
From the AA Website:
Q. Does this bag policy apply to American Eagle flights? What about AmericanConnection® flights?
A. Yes, this policy applies to American Eagle and AmericanConnection flights.
I'll guess that US Air, United or both follow suit within 5 days. That will lead to a match by all the majors, except Southwest who will launch a new advertising campaign about how the other airlines nickel and dime you to death....
I haven't checked a bag in years for business travel, but as a parent who needs to often check a bag AND a car seat, this will hit traveling familles the hardest.
From the details:
"When traveling with a child, checked car seats and strollers will continue to be free. Other items checked as baggage will be considered as part of your checked baggage allotment and fees would apply."
Count me as one who's not affected by the pricing of this policy change, but we'll all be impacted by the increase in the amount of carry-on bags. For those elites who ever happen to visit a baggage claim think about the number of small bags that come down the belt. We'll start seeing many of these on the plane as opposed to under them.
I can certainly appreciate the dilemma AA and all airlines find themselves in with the high cost of fuel. What I don't get is the way this baggage issue is approached. It doesn't cost AA any more in fuel (in labor, probably yes) to carry a bag in cargo than it does in the overhead. Why not start charging by weight, no matter where the bag is? First 30lbs free, for example, and escalating charges after that. That would not only encourage people to carry less, which would save fuel, but would also not incent passengers to carry on the kitchen sink.
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!
/sarcasm off
A $20 connection bag transfer convenience fee would fit in quite nicely, and it goes up to $50 to expedite a close connection.
think about the number of small bags that come down the belt. We'll start seeing many of these on the plane as opposed to under them.
