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Thursday, June 5, 2008

AA: The bag fee is no biggie

OK - this is the last AA Baggage Fee posting, we promise. But this one isn't our fault because AA is on the PR offensive and is contacting media outlets to explain "The Fee". Our headline paraphrases the situation, that this new bag fee really won't impact summer trAAvel. Per this story:
  • They estimate that 25% of passengers will be affected by the $15 first bAAg fee;

  • That's because (same story), 75% of summer travelers have already bought their tickets and thus won't be asked to pay the bag fee;
  • Thus, travellers need not worry about being inconvenienced [oh, and please book on AA ASAP].

Makes perfect sense - until you start looking further:

- Back when the fee was announced, AA said that only half of their passengers check a bag. If true, then only 50% of the 25% percent (of passengers that haven't bought summer tickets yet) may pay the fee.

- Then remeber that a bunch of those pax are international and / or elite and / or bought a full price ticket - so no bag fee applies.

- Now figure that less people will be willing to check a bag because they now have to pay $15.

Now we're figuring maybe 5-10% of summer travellers on AA will pay this first bag fee? Hmmm..

At $15 a bAAg, that's still a lot of money. But AA is certainly getting a TON of bad publicity for this and they don't seem to know how to make a bad story go away. FMV's advice - just zip it already! Don't keep trying to explain it, don't keep trying to justify it, and for goodness sakes - DON'T try to tell your customers that it's actually a "bargain" !!

"The airline defended the fee, saying it was a bargain compared with the cost of shipping a 45-pound bag overnight on a package-delivery company. A spokesman for the airline said the cost of sending a bag from Dallas to New York would range from $150 to $230 or more."

FMV is also thinking of making this a paid site for our new customers for $10 a month. We figure it's a huge bargain compared to paying for online newspapers, CNN.com, espn.com and others! oh wait, those are free too....

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