American to charge for FIRST checked bag.

[Kevy Baby]

Originally Posted by innerSpaceman

I think you missed my point, Kevy. If Southwest charges for drinks and brings their fare down to $69, and American charges for drinks and brings their fare down to $69 and every airline does the same ... where's the "published ticket price" advantage in charging for drinks?

I used Southwest specifically because they are currently advertising that they DON'T (and for the foreseeable future, presumably won't) have the additional up charges.

As I predicted earlier in this thread, I think this will become an advertising game as a way for airlines to differentiate: some will advertise the lowest possible fairs and others will advertise that they don't nickel and dime you to death. US Air (et. al.) are predicting that the ticket-buying masses are stupid and will just go for the lowest fair. Southwest (and I am sure that if not already that there will be others) will give buyers credit for reasonable intelligence and can figure out that they really are the same cost (effectively) to fly with them. They also win with clients (like Moonliner) who just want an all-inclusive price.

Considering SW's considerable success (they are one of very few airlines that has consistently made a profit - most recently because the invested wisely in jet fuel futures), I prognosticate that the SW model will prove to be more successful

[Not Afraid]

Originally Posted by innerSpaceman

There's simply no sound business reason for this decision.

Airlines are in the profit business as opposed to the goodwill business. They need to make money in a competitive environment. Which is why this is a sound business decision for thier bottom line.

[Kevy Baby]

Originally Posted by innerSpaceman

If you know that "someone else will" three days after you do, what's the incentive to the the first someone that will???

American's advantage is over. Why did they bother?

Every airline knows that the minute they pull a stunt like this, all other airlines will be forced to follow. So why bother in the first place?

I believe ultimately that this will have less impact than an announcement that "American Airlines raised their prices today." Silly, but I believe it to be true.

[Ghoulish Delight]

And panic isn't a good enough reason? Every airline is at the panic point. At this point "preventing someone else from taking the advantage" I'm sure looks like excellent business, even if it means the end result is status-quo. I can't imagine any airline exec looking at an obvious way of lowering ticket prices without thinking, "If we don't, someone will."

Honestly, they're doing a terrible job of spinning this. Or, rather, consumers and media are doing a better job of spinning it. The way I'm looking at it, and the way they should be pushing it, is, "Don't pay for services you don't use."

[Kevy Baby]

If it weren't for last-minute panic, I would never get anything done

[Fab]

Me too.

When I was a kid, a million and six years ago, flying was a luxury. If I'm going to fly anywhere, I'll fly Virgin or JetBlue, or go Business Class. Sometimes, Coach plus all the things you have to pay for equals or almost equals Business Class price anyway.

Otherwise, I'll take Amtrak.

Flying is a luxury again.

[innerSpaceman]

You're right, Mr. Delight. Don't Pay for Services You Don't Use would be the proper spin.

Right now, I think they're shooting themselves in the wing by looking like they're going to charge you extra for on-board oxygen.

[Ghoulish Delight]

They hardly had the opportunity as media outlets jumped on it instantly and painted them as evil money grubbers. Not sure why people want airlines to fail, I personally kinda appreciate the service they provide.

[BarTopDancer]

Originally Posted by Kevy Baby

At $2.00 for a bottle of water, the chances are that it will still be cheaper to purchase on the plane than to buy from the post-security store.

Not thus far. $2 for a bigger bottle of water or $2.50 - $3 for a small bottle.

[innerSpaceman]

I don't think the public wants them to fail. They just don't want them to succeed by being deceptive.


And I think it's perfectly logical perception to look at "Hey, our tickets are $10 less than our competitor's ... but we charge you $15 to check a bag" ... as an attempt at deception.