FlyerTalk Forums - View Single Post - Why they started charging for Checked Bags
Old Dec 29, 2008 | 1:01 am
  #8  
fastair
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Join Date: Jun 2004
Location: What I write is my opinion alone..don't read into it anything not written.
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Plain and simple...they charge because "a la carte" is the current trend.

Low end hotels=free wifi, high end hotels=$10+/day
How to increase revenue without alientaing a huge number of frequent fliers? Exempt them from fees, and charge all the rest.

As for weight restrictions...extra fuel is loaded for alternate destinations....if u land at primary, u have xxx lbs of extra fuel, making the landing too heavy...due to poor weather at destination.

Overhead space not being used? That is a crock...seems someone was talkin out his butt.


Selling cargo space? happened before, will happen again..nothing has changed there.


It is simply another form of a la carte pricing to increase revenues...nothing more.


DL (I believe it was them) conducted a study that the average bag costs about $15 to transport in incrimental costs (beyond initial facilitie cost which at a hub is HUGE for a sorter system) in terms of labor and fuel. $15 for 1st bag is on par with their study, $25 for 2nd bag seems to make a profit. Simple economics.
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