Baggage Surcharge finally?

Question

Well, it looks as though American Airlines is the first airline to implement some sort of "fuel recovery" charge and it is coming in the form of a baggage charge. Look for the rest to follow suit very soon. YIKES!!!

http://www.time.com/time/business/article/0,8599,1808804,00.html

Answer 1

Oh Sh**t! that's a good way to fool  passenger and to trap them into paying extra fees. AA is scared to raise the ticket prices, so what do you do if you're travelling with your family with 5or 6 luggage pieces?

How would they deal with misplaced or "trashed" baggage, if I pay an extra charge for my baggage I'm expecting to get it back in good condition (not ripped or with missing parts)

Answer 2

It's scary from a p&l sense what the airlines are paying for jet fuel, so none of this comes as a surprise, since the baggage charges capture not just future bookings but existing ones.

Answer 3

Since airlines know that passengers might be scared off if the ticket prices are too high, they are nickel and diming passengers.  AA is now going to charge a fee for all checked-in luggage.  Some analysts say that this concept may back-fire because the passengers feel they are nickel and dimed.  The analyst went on to say that it would be better if the airline just raised the ticket price to offset the increase in fuel.

I cannot blame the airlines for needing to come up with creative ways to make more money since the price of fuel has gone up.  The CEO of AA, Gerald Arpey even said that the airline's business model does not allow for them to operate when fuel is at $125 per barrel.  Right now the price per barrel is $135.  Fuel prices are killing the airlines right now.

Answer 4

And thanks to Air Canada for flights to the US

The additional fuel surcharge is $40 one way per person

($80 roundtrip per person)

· In effect for any reservation which is ticketed May 26, 2008

and onwards