American Airlines Now Charges $15 For The First Checked Bag
American Airlines has just announced that it will begin charging a $15 fee for the first checked bag starting June 15. The airline also said that it would raise fees for things like "reservation help" and "oversized bags."
CEO Gerard "$15 Fee For Knowing My Middle Name" Arpey said:
"The airline industry as it is constituted today was not built to withstand oil prices at $125 a barrel, and certainly not when record fuel expenses are coupled with a weak U.S. economy," AMR Chairman and CEO Gerard Arpey said in a statement. "Our company and industry simply cannot afford to sit by hoping for industry and market conditions to improve.”
Well, damn.
American to begin charging for first checked bag [AP]
American Airlines to trim schedule, boost baggage fees [Dallas Morning News] (Thanks, Travis!)
(Photo: Zonaphoto )
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Comments:
Well then just be honest about making ticket prices higher! People can see right through all this nickel-and-diming. And this is just going to lead people to cram more bags into the overhead compartments. This is going to be a boon for the toiletries industry, though. Since people won't be checking bags as often, they'll be limited to the 3oz allottment and have to buy everything else when they arrive.
Sounds fair to me. The industry is being crushed by high fuel prices. I'm all in favor of having a ticket be just that, a mode of transport for your person from point A to B. Seems to make sense to charge for extras, i.e., checking bags, reserving specific seats, or additional assistance as long as it's clear up front. It also allows those who do not use those extra services to pay less for their flights.
@ChrisC1234: They know how to handle reality. If they get introuble the govt will bail them out with our money. That is their reality.
Sites like Travelocity have done a pretty good job so far of calculating "true" prices for flights so that you can get a meaningful comparison. If they're smart, they'll add a "checked bags" field to their search form, and suddenly, the AA flight that seemed like a deal loses out to an airline that doesn't charge for the first bag. Problem solved.
@sir_pantsalot: Well, some might think the CEO deserves a bonus for "innovations" (fees) that keep the company alive and operational, especially with record fuel prices.
@The Count of Monte Fisto: I agree...tried to take Amtrak ONCE...never will again. After waiting 4 HOURS for the damn train, I walked down the street and hopped on a Greyhound bus in ten minutes. The saddest part is that, while the freight companies own the rails they are REQUIRED to yield the right of way to passenger trains from AMTRAK. The reason? Amtrak is OWNED by the US gubmint and it is the law. Is it ever practiced? Obviously, no....if it were Amtrak would be making money rather than sucking down our tax dollars like every other stupid gubmint stupidity...
My problem with all these fees is I really don't see them ever coming down once the economic climate improves.
I'm also with the people who say that the ticket price should just include everything, including taxes. So should cell phone plans for that matter...(and everything else). How awesome would it be to walk around any store and know exactly how much something is going to cost you? I guess you could in a state without sales tax...(I live in NY, so no such luck).
@oneTee:
Because Exxon doesn't set the price of oil, the free market does. Exxon extracts the oil and sells it for what the market will bear. Record profits have already been spurring more development of harder to reach oil, but as countries like China continue to demand more oil (yeah, US too, but we're not the main pull on demand anymore) the price will simply keep on rising.
If you're that concerned about the rising prices, why not invest in an oil-focused fund? That way at least any rise at the pump will correspond with one in your portfolio.
I know I may be in the minority here, but frankly I think charging the fees on the bags is a lot better than raising prices across the board. It should have been like this for a long time. It shifts the cost burden onto those that use up more fuel.
I'd rather pay a base fee that is just to get me and a carry-on from point A to point B and have to pay for extras like checked bags. If I don't have 50lbs worth of luggage with me, why should I have to pay a share of the other guy's luggage? It'll also help to keep people from packing things they don't need to take with them. If more people take less unnecessary luggage, the airline uses less fuel, which drops the overall cost of the flight.
looks like my car and I will continue to be good friends, and I'll also be giving more of my good money to Amtrak.
I honestly don't understand why the airlines can't configure a business model that allows them to make profit without nickel and diming, but I suppose I'm no economist. Mostly, these new advances just guarantee that I'm going to try my hardest to travel without flying. Ten hour car trips are starting to look better and better.
@Crymson_77: I don't know where you get your information, since every Amtrak train I've ever been on has had to yield right of way to the damn freight companies.
For what it's worth, there are a few Amtrak trains on certain routes that are known to be almost always late. There are also a lot that are almost always on time. For my money, riding Amtrak totally beats the airlines. No one rifles through your bags, you can buy a ticket and hop right on, and the pricing structure actually makes sense.
@facted: Places with VAT generally have prices listed with VAT included (eg Europe). Meanwhile, I have to add 9% or 10% to everything. That makes those "dollar menus" really annoying...
I can't remember where I read this, but a study said that when prices are quoted with VAT included, it makes it much easier to levy ever-higher taxes on the people. That's also my one gripe with the FairTax idea...when politicians are in charge (just like airlines, to keep it on topic), rates and fees tend to go up and never back down.
I am in favor of charging people based on the "services" they use. Why should someone who only takes a backpack pay the same as a morbidly obese person with two suitcases?
However, rewards work (and sound) better than punishments. Therefore, airlines should start with a high all-inclusive ticket price, then deduct amounts for less luggage, less services, not a fat ass, etc.
@corporateamericabites: I haven't flown AA ever since they lied to the St. Louis community/area, promised they wouldn't gut TWA, promised their employees would be treated fairly, promised they wouldn't screw us over, then did all of those things. Why should I reward pathological liars? The icing on the cake was one of their employees screaming at me on a discussion forum and telling me it was all our fault. Uh, what?
Turned out that guy was lying about a lot of things, too, and hasn't been back there.
If AA behaves like this, why should I give them any business?
Southwest all the way.
@Leah: Passenger trains used to yield to nothing. Pathetic how far things have fallen that inanimate freight that doesn't care gets to move before humans, who do, can.
Except they will still raise fees across the board, and then charge you $15 to check your bag.
For trips less than 10 hours I've started taking Greyhound. I'm not really a big fan of theirs in general, but when you factor in everything, it's not that bad of a financial deal. Their fares are MUCH less, usually at least half the price if not more. The overall travel time is obviously longer, but I'm an hour and a half from the airport, whereas only 15 minutes from the bus station. That saves 2 1/2 drive time, plus having to be at the airport early. You also save daily parking fees which in my case are at least $10/day. By the time all is said and done, I've saved a ton of money in exchange for a few hours of my time. I usually take a book I've been wanting to read and my iPod and I'm all set.
"Except they will still raise fees across the board, and then charge you $15 to check your bag."
In some kind of crazy scheme not to be bankrupt, right?
@bonzombiekitty: As Franklin said, the issue is that they're not reducing the price that YOU pay. You are paying exactly what you paid before the insituted the $15 fee. I agree with the general principle that you described which is I understand it is what happens on the European low-cost carriers. However, they start with a rock-bottom price and then nickle and dime you.
The US system has started with high prices and also nickle and dimes you. Doesn't quite do the same thing.
@Landru:
Not a shill, an economist. I'd like to pay $200 to fly cross country with two bags, a meal, and lots of leg room, but realistically it isn't possible. On this blog, there tends to be a lot of bitching when prices rise or a new fee is added. I'm trying to present the other side of the argument.
If I weigh 100 lbs and bring a 40 lb bag, why should I pay more than a 300 lb person with no bag?
But I can also agree with all the new bag fees. Makes picking up my bring-everything-including-the-kitchen-sink mother from the airport much easier.
I just really wish they'd slap a fee on people who bring stinky food into the cabin to eat during the flight.
Two problems here. One, people like to propagate the theory that because other people now have to pay to check their bags, their fares will go down ( or at least not be raised as much ) because they are no longer subsidizing the cost of transporting other peoples' luggage. Just pointing out that this is false.
Second, while they may have to charge more to avoid bankruptcy, aren't they on a curve that says increasing prices will lead to fewer tickets sold, which will eventually lead to making less money than they would make by not raising prices? I'm not saying we're there yet, but we're getting awfully close.
@basket548: We will never see pricing by weight though, as much sense as that makes. The ACLU among other organizations would be all over that. For every person who is overweight because of laziness there are others (myself included) who have a thyroid condition that causes problems. Also, can you imagine people at the ticket counter checking to see if weight on presold tickets match actual weight?
@Zclyh3: Ahh... but just wait - as with almost all previous fees, the other airlines will soon follow suit and we'll be screwed either way.



















I don't know why this is such a shock to me! I guess I'll have to carry on and forgo any "liquid" products because I'm limited to "Travel-size toiletries (3.4 oz./ 100 ml container or smaller) that fit in ONE, quart-size, clear plastic, zip-top bag." (per the AA website.) ARGH!