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Thread: Delta adds fee for 2nd checked bag on international flights - will AA follow?
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Old Apr 24, 2009 | 3:14 pm
  #10  
Deltahater
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Originally Posted by zman
Let me try and figure this out, I am NOT an MBA
DL lost ~$800m in Q1
Charging $50 for a 2nd bag International (what ever that is) will bring in
$100m per year (or $25m per quarter).
So here is the real ?, if non airline specific loyal people buy on lowest all in price, and NOT everyone matches the $50 DL fee ($100 RT), they will loose XXXX in revenue by not selling the $500-$2000 ticket).
If they do not get matched from their major Internaltional Competition (AF,AC, BA,KL,LH,JL,ANA,KE ect) they will loose more revenue they they take in.
Look what happened when USless air charged $2 for a can of soda.
I am not arguing that these fees make any sense. Not much in this industry makes sense. But, since DL started, there is really no reason for AA to not match (applying their own twisted airline industry logic)

Anybody who things they can nickel and dime themselves to profitability probably went to a really, really bad business school, if any school at all.
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