Mean Spirited!

The big word in the airline industry these days is “unbundling.”  This means is that when you buy a an airline ticket, you’re no longer buying a bundle of services but simply the right to a seat on the plane.  Everything else is extra and will be charged for.

For the airlines, desperate to turn the corner of profitability, this means a lot of revenue.  For example, in 2007, US carriers collected $464 million for checked bags, and almost $2 billion in just the first nine months of last year.  In short, this cash-strapped industry is now dependent on this revenue, and we can hardly expect these charges to go away as the economy gets better.  Nor can we expect American legacy carriers to position themselves as “premium” players that are above these petty charges.  United can hardly suggest that it is a player in the same category as Singapore Airlines or Cathay Pacific as it moves closer and closer to a Ryanair style of travel!

We’ll see more and more carriers repositioning themselves as competitors in the cut-throat low cost carrier sectors.  Traditional European flag carriers seem to be going the same way with AerLingus, Iberia, and Alitalia firmly committed to the unbundled business model, and British Airways making every indication that it is about to follow.  This is a little sad for British Airways customers who became used to feeling that their European vacations had begun as they stepped on to a British Airways flight and were greeted with nice drinks and good food.  (Does anyone remember the smoked salmon, clotted cream, and afternoon tea even in Economy?)

I have always worried that these baggage charges lead to people putting as much as they possibly can into their hand luggage — resulting in a chaotic frenzy to park wheelies as the passengers settle themselves on the plane.  Spirit Airlines seems to have found a solution!  Not only are they unbundling checked-in baggage, but they are also charging for carry-on bags.

For any bag, other than small items like purses and laptop bags, or “baggage that will not fit in the under seat space,”  there is now a charge of up to $45.  Click here to see details of Spirit Airways new policy.

Ryanair has taken unbundling another step forward with their determination to remove as many toilets as possible from their planes.  And if you want to “spend a penny,” you’ll have to spend a pound ($1.50) to get into the remaining toilets!

As for passengers, there is probably nothing we can do except endure this.  But airlines should be required to reveal the real cost of flying when all the extras are added together.  And I will vote with my wallet and fly on Southwest, one of the few American carriers that still allows you to carry on two bags for free.

Indeed, Southwest is now advertising the difference!  If you consider the fees for baggage, Southwest may save you as much as $120 for a round trip when you consider that two checked bags are included in the price of your ticket.  Click here to see Southwest’s advertisement.