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Archive for Sunday, August 7, 2005

Major airlines charging for formerly free services

August 7, 2005

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Many travelers have a preflight checklist down pat, with their baggage, gate information, e-ticket confirmation number and identification ready to go.

And, these days, you don't want to forget some cash.

With the major airlines cutting back on perks as they struggle to reduce costs, travelers are finding that more amenities that used to be free now carry a price tag.

"It all comes back to the demand for the low-fare ticket," said David Stempler, president of the Air Travelers Assn. "The big airlines have decided they can't give you that low fare and also give you food, pillows and all those other perks for free."

The trend comes as airlines are working desperately to boost revenues to offset low fares and high fuel prices. The six major hub carriers have lost more than $30 billion since 2000.

Although airlines have had some success raising prices this year, the last two attempts to increase fares have failed. Overall, airline ticket prices remain at the lowest level in decades.

That means the additional money must come from somewhere else, leaving the search for nickels and dimes to span every point of the flying experience. For some passengers, it begins right when the ticket is purchased. If you want to buy your ticket by calling the airline, most airlines now charge a fee.

American charges $5 for buying a ticket over the phone or $10 for buying at an airport ticket counter.

Booking a trip on the airline's Internet site - which is much cheaper for American to process - remains free.

Cash for check-in

When you arrive at the airline, you could be charged to check your bag at curbside.


Airlines are beginning to charge for skycap services to help make up for budget deficits. Skycaps generally are stationed curbside to assist departing passengers by checking bags to their final destination, helping passengers avoid ticket lines. Such services are provided at Oakland International Airport.

Airlines are beginning to charge for skycap services to help make up for budget deficits. Skycaps generally are stationed curbside to assist departing passengers by checking bags to their final destination, helping passengers avoid ticket lines. Such services are provided at Oakland International Airport.

Several major carriers, including American, are testing fees for curbside check-in at several airports. At American, travelers flying from Seattle or Anchorage, Alaska, must pay a $2 fee per bag to check at curbside.

That's in addition to the tip paid to the skycap.

Those fees are split between the airline and its curbside contractor, Huntleigh USA Corp., American spokesman Tim Smith said. If successful, American and other carriers may expand the check-in charge to other airports.

More fees may come when you check your bags, depending on how many you have and how heavy they are. Airlines have been cracking down on baggage limits, requiring passengers to pay more for oversized or overweight bags.

At American, domestic passengers must pay $25 per bag that weighs more than 50 pounds.

Most passengers also must pay for checking more than two bags. Fees range from $40 to $100 per additional bag, depending on the airline. American charges $80 for the first three additional pieces, $105 for the fourth, fifth and sixth, and $180 for any additional bags.

"We've always had baggage restrictions," Smith said, "but there is more enforcement of it today."

Financing food

Once your flight takes off, expect to take out your wallet if your stomach rumbles. Most airlines now charge for food, even snacks, in coach.

Northwest Airlines recently stopped handing out free pretzels on flights in exchange for snacks that cost between $1 and $3.

This year, American Airlines began selling $3 snack boxes and $5 sandwiches on flights. The food has proved popular, particularly on transcontinental flights, airline officials say.

Continental Airlines remains the only major holdout, continuing to provide food as part of the ticket price.

Passengers also are on their own when it comes to entertainment on most domestic flights. Nearly all of the major airlines, most recently Northwest, have taken free magazines out of the coach cabin.

On American, it now costs passengers $3 to $5 to buy headphones to plug into the flight's entertainment system to listen to music or a movie. Passengers get to keep the headphones for use on later flights.

American also has tested portable entertainment players on some flights that feature movies, TV shows and music. That device will cost $8 to $12 per flight.

It could cost you even if you just want to snooze the flight away. Last year, American removed pillows from coach cabins.

That means fliers who want to get comfy now need to carry on travel pillows, which often are sold at airports or travel shops. They cost $5 and up, depending on the quality.

Some analysts fear that the assortment of fees could alienate passengers and drive more to rival low-fare airlines, which often have fewer extra charges. And some also offer greater amenities.

JetBlue Airways, for example, provides free satellite TV. AirTran Airways offers free XM satellite radio.

But Gerard Arpey, American's chief executive, has said the reduction in perks was necessary because although consumers appreciate extras, they simply don't want to pay the cost.

Fliers prefer low fares, he said, and shifting the cost of food, entertainment and other amenities directly to the travelers enables American to keep ticket prices low.

He even enshrined the notion as one of the four "tenets" of American's turnaround plan: "Fly smart, give customers what they value."

Customers value - and will pay for - a basic level of service that includes safety, on-time performance, courteous service and proper baggage handling. Arpey concluded that although customers appreciate extras like food or entertainment, they're not willing to pay a higher ticket price for them.

"As a whole, passengers have made a decision that the low fare trumps everything," Stempler said. "That means if you want more than basic service, you'll be paying for it."

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