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Wednesday, May 21, 2008

DiAAling up the fees!

The big news today, AA has announced a $15 fee to check a bag. That's for every bag, starting at the first one checked. A second bag is still $25 to check. Yes, yes, some restrictions apply (e.g. Elites, strollers, international travellers, etc.). However, this is a huge step up in the ticky-tack approach we've seen in the market to date.

Consider some of the major ramifications:
  • Travellers really can't cross-shop carriers now. This is effectively a $30-$80 fare increase for most leisure travellers that is opaque during shopping.

  • Airport operations just got more complicated. It's usually quite a wait to check a bag, so we rarely do. Now every stooge in that line has to complete a payment transaction, too. Not to mention AA probably needs more cash in the drawers at the airport.

  • Overhead bin space goes from endangered to extinct. No further explanation required here.

  • Gate checking proliferates. This can't speed up the boarding process. Unless AA follows this jab with the haymaker of reduced carry-on size allowance.
This is a pretty strong move by AA. Are they committed if no one else follows? This will be a fun one to watch.

Though possibly not for travellers....

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