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AA to charge for FIRST checked in Bag
http://news.yahoo.com/s/ap/20080521/...nes_reductions
FORT WORTH, Texas - American Airlines will start charging $15 for the first checked bag, cut domestic flights and lay off possibly thousands of workers as it grapples with record-high fuel prices. Rival Delta has no current plans to match American's fee for the first checked bag, a spokeswoman said. American, the nation's largest carrier, said Wednesday the fee for the first checked bag starts June 15 and that it would raise other fees for services ranging from reservation help to oversized bags. The other fees will mostly range from $5 to $50 per service, the airline said. Last month American announced it would join other carriers in charging $25 for second bags checked for some passengers, but it wasn't immediately clear how Wednesday's announcement would affect that. Its proposed fee for a first checked bag would exempt people who belong to elite levels of its frequent flyer programs, those who bought full-fare tickets and those traveling overseas. Delta Air Lines Inc. spokeswoman Betsy Talton said the Atlanta-based airline is considering all of its options in light of $130-a-barrel oil, but has no plans "at this time" to match the $15 fee American announced. Chairman and Chief Executive Gerard J. Arpey said he expects the new or raised fees will raise several hundred million dollars, but that was the best estimate he would give. The changes were being made to adapt to "the current reality of slow economic growth and high oil prices," Arpey said. He said the fees are an effort to get customers to pay for services they want. Arpey didn't put a figure on the layoffs, but when asked whether he expected the figure to be in the thousands he said yes. American plans to cut domestic flight capacity by 11 percent to 12 percent in the fourth quarter. American had previously expected fourth-quarter capacity to fall 4.6 percent from the same period in 2007. Parent AMR Corp. said reduced flying will lead to an undisclosed number of job cuts at both American and its American Eagle subsidiary. AMR expects to retire 45 to 50 planes from its fleet, most of them gas-guzzling MD-80 aircraft. Those were the plane grounded for faulty wiring last month. American said rising oil prices have increased its expected annual fuel costs by nearly $3 billion since the start of the year. AMR shares tumbled $1.42, or 17.2 percent, to $6.78 after the announcement which came as its shareholders gathered for their annual meeting. They sank to a 52-week low of $6.72 earlier in the session. |
Unbelievable
I MIGHT consider flying on an airline that charged for all the checked luggage if it were a Skybus, Ryan Air (you basically do now anyway) type with $30 fares, but not on a legacy airline with $200 fares to start, before you even add taxes, fees and fuel surcharges. I MIGHT consider flying on an airline that charged for all the checked luggage if it had not, in the last couple of times I have flown with them, missplaced either my or someone in my family's luggage. If you charge for a service, then it should be fulfilled. I think American Airlines has demonstrated, at least to me, that it cannot consistently deliver.
I challenge the compensation rules to apply once this fee is assessed since it is now a bought and paid for separate service. All I can say is personally I am boycotting them, and any other airline that follows suit. |
WSJ article here.
Airlines believe that people are still making purchasing decisions based on the quoted price, without fully considering all the add-on fees, including change fees. People will eventually catch on, so this shell game is merely a delaying tactic, one that will alienate customers to boot. When people wise up, they will start choosing airlines without junk fees even at a higher quoted price. I predict that a year from now the trend will be toward removal of these fees. |
I'm sorry but this is just stupid. So if I fly overseas, I get a bag checked free? What about if I have a business trip for over a week (suits included) to someplace? I have to pay to check my damn bag? I'm done. No more AA until they take this stupid rule away.
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venice: The 2bag limit still applies to international flights and for first class and Elites (for now). The one bag limit (or 0 bag with AA) is (for now) only domestic.
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Originally Posted by mwarrior
(Post 9758189)
venice: The 2bag limit still applies to international flights and for first class and Elites (for now). The one bag limit (or 0 bag with AA) is (for now) only domestic.
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I bet they don't stick to this if no other airlines match it. To me, this is so ridiculous its like a fare hike the airlines try and then recend if nobody matches.
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Or its another way fo rthem to make it look like they give their Elites better service. "We will waive our $5-50 fee for the bags and phone booking for our elite members... but anybdoy else wants to travel, pay our fees or go somewhere else".
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All that this new policy is going to do is to encourage more people to bring more stuff on board the plane itself. As if we don't already have enough problem with space in the overheads! As soon as people realize that they are going to have to pay to check it, they are going to decide to just carry it on. The flight attendants have got be feeling the AA love right now, I would say.
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This first bag charge is disgusting. They could have saved all that money by not printing up all the misleading "Your first bag is FREE" BS signs. I'm AA Lifetime Gold and AA Corporate is going to get an earful on this one.
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Just imagine what this will do for the security lines....???
They are long enough as it is... now people will be trying to bring on more.... and more than 3 oz of liquids. Going to be a nightmare. |
Originally Posted by wharvey
(Post 9758367)
Just imagine what this will do for the security lines....??? They are long enough as it is... now people will be trying to bring on more.... and more than 3 oz of liquids.
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From AMR
2008 Capacity Reductions Q & A 5/21/2008 The current compensation program - while conservative when compared with the industry - is designed to retain this management team. Now more than ever we benefit from having a skilled, experienced leadership team. should they be retained? Is the BOD's asleep? Fees Earned or Paid in Cash 2 Name 1 ($) John W. Bachmann 37,000 David L. Boren 38,000 Edward A. Brennan 16,500 Armando M. Codina 37,000 Earl G. Graves 37,000 Ann M. Korologos 36,000 Michael A. Miles 36,000 Philip J. Purcell 38,000 Ray M. Robinson 37,000 Judith Rodin 36,000 Matthew K. Rose 38,000 Roger T. Staubach 36,000 I wonder if the BOD will have to pay the $15 fee? or AA employees? |
I think if you pay full-fare, the first bag is still free, so it should affect business travelers less.
Not saying this isn't a disgusting move |
Absolute stupidity. No doubt about it. I hope the other airlines dont match this, then AA will just remove it as happens when one of the legacy's try a price hike.
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