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Old Nov 6, 2009, 11:32 am
  #19  
knope2001
 
Join Date: Oct 2004
Posts: 2,653
Originally Posted by hazelrah
The juries still out on the efficacy of the bag fees. There is no doubt that the bag fees are a short term tonic to the bottom line. As an example Delta has implemented the bag fees and pumped up its revenue stream; however its traffic keeps falling like a stone. it can't cut capacity fast enough. Also they have had to cut base fares in a competitive marketplace. To me the bag fees just seem another price obfuscation mechanism.
Did you happen to note the details I posted earlier about AirTran's most recent results and how the increase in ancillary revenue from things like bag fees and seats (+$30m) were critical in their $10m profit?
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