Their slide rules say this insanity will raise money and lower costs. Well, wait til they look at their September load factors and suddenly realize they need to attract their customers, not hose them

I run a small business. If I treated my customers the same way, I would be out of business in 10 minutes. The difference is that these airlines operate in an oligopoly and there is limited true competition. That said, if they treat us like cattle, then like cattle we must vote with our hooves. Last year I flew 100K miles with 80K plus on CO. I haven't travelled in 2 months now. Flying and traveling are over-rated anyway.

People are already voting. Load factors are down, many routes have been cut or abandoned, and CO's answer to this is to screw its customers. The policies will change soon, as oil heads south to $80, then $70 and levels off around $60. And then, CO's bean counters will be too stupid to hedge oil costs at $60

Do you really think oil will hit $60?

Every report I read about the Q2 earnings releases mentioned some analyst talking about how surprised they were by the revenue increase from these fees. I think the bean counters have gotten it exactly right. Finally, the airlines are starting to run themselves like a real business.

Chas
Having just returned from BWI, I noticed that the worst airline (US) had a full planeload of people going to Charlotte. What was even greater were their signs in the boarding area "touting" their choice of $2 (and up) drinks (showing cans of soda as well as wine and other alcoholic beverages) and their clubs (which just closed in BWI!!!). Do you really expect people to stop flying because of $15 bag charges and $2 drinks?

Finally, I wound up having to book a flight on US because it was the only airline that could get me to a meeting at the right time. If G-D is on my side weather wise and US is operating then I will actually make it. The point is that due to cutbacks and loss of routes, we may be taking flights that we normally would never have been on. It is just the way things are going to be in the future.

I just got back from Dallas on an airline who fell in love with the S80, and there were about 40 on the plane, and only one passenger bot the trash they were selling on the plane, and he even used American Express to pay

I was thinking $80, a gentleman from Exxon corrected me and said "more like $60

No, I expect passengers to gravitate to airlines who decide to dump the fees and fight for passengers, especially during a recession. Do you remember the extraordinary lengths the airlines went to after 9/11 to get people to spend money on air travel?

Exactly. The beancounters were correct if their goal was to increase revenue short-term. If their goal was to increase revenue long-term with a loyal customer base, well, they've got it all wrong.

Isn't it a little early in the game to be wondering whether or not the "bean counters" got it right? The CO changes were just announced on Friday. We have had only a weekend to digest them, whereas they have likely studied the impact of these fees for (at least) months. Remember, CO wasn't the first to initiate any of these fees - or reductions in elite benefits - or anything else people seem to be complaining about.

It may take weeks/months/years to see whether CO's decision to nickel-and-dime like the others hurts or helps their bottom line. The same holds true for the seemingly imminent departure of silver and platinum elites (if you believe everything you read on some of the other threads).

Customers will ultimately make the decision that best suits their travel pattern - whether that is actual travel or mileage earning scheme. The much bigger questions come up if the economy cannot turn itself around and the planes eventually fly half-full - that is to mean everyone, not just CO.

I disagree. CO has been a leader in these sorts of negative changes.

While they weren't the first to start charging for the first bag, CO has many negatives under its belt:

- Only carrier with no free standby or same-day confirmed for Elites.
- Some of the highest award rates in the industry
- Only carrier with 50% EQM for low fares
- Highest reward change/redeposit fee in the industry
- One of the only carriers that charges Platinums for close-in award ticketing

CO may not have been the first to change, but they have been quite extreme in what they did.

The free sandwich on board isn't gonna make up for it anymore, and these customers may be gone for the long-term.

Well, the airlines have decided to shrink in size and up fares i.e., boot the cheap low-paying customers. It is their perfect right to decide which business model works for them. I am hardly the one to question their planning. My only thought is that, as you contract, you sure leave the door open for LCCs. What we are discussing here is CO's loyalty program. Look at it 2 ways. Either the flyers have no loyalty and are going with the lowest fare and CO is adjusting their program to reflect this diminshing loyalty. Or CO is telling the flyers that there loyalty is not so important and do not care if we show them reciprocal loyalty. As some one said, time will tell. The legacy carriers are all big companies. As a small business owner, I will not weep for any of them regardless of what happens.

I'm beginning to think I'm alone in assuming that the US airline industry is competitive (perhaps even hypercompetitive). In a competitive marketplace, aren't prices set by the market?

If so, then doesn't the first bag fee just shuffle the price equation a little by placing a little more burden on those that check bags and a little less on those who do carry-on only?

It also means that many will sneak on board with 2-3 pieces on their roll-aboard, and an additional piece on their shoulder, thus using up the overhead space very quickly. Then, the poor .......s who get on last will have to check their bags at $15 a piece, as no OH space will be left