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The New York Times
May 22, 2008
American, Cutting Back, Plans $15 Bag Fee
By MICHELINE MAYNARD
American Airlines, the nation’s largest air carrier, said Wednesday that it would begin charging $15 for many passengers to check their first bag, eliminating a free service that passengers in theUnited States
American made its announcement during the annual meeting held by its parent company, the AMR Corporation, inFort Worth
At the same time, American said it would take up to 85 aircraft out of its fleet, including jets and commuter planes, by the end of the year, one of the biggest cutbacks since the airlines culled their fleets after the September 2001 attacks. American has about 960 aircraft at the mainline airline and its American Eagle subsidiary.
The reductions will translate to an 11 to 12 percent cut in service during the fourth quarter, American officials said. They said the airline would eliminate some jobs, but did not give specifics.
Airlines around the world have been hit hard by skyrocketing jet fuel prices, which have climbed 80 percent in the last year. The higher prices have prompted them to institute a raft of fare increases, surcharges and fees for services that previously had been free. Other airlines, including Delta and United, also have announced plans to reduce their fleets.
“Our company and industry simply cannot afford to sit by hoping for industry and market conditions to improve,” American’s chief executive, Gerard Arpey, told company shareholders.
American said it would assess the first-bag charge beginning with travel on June 15. The new charge applies to passengers who purchase discounted coach fare tickets within theUnited States
Passengers who have already bought tickets for travel after June 15 are exempt from the first-bag charge.
The extra baggage fees will only exacerbate the situation on already crowded planes, said Patricia Friend, the president of the Association of Flight Attendants, a union representing 55,000 employees at 20 airlines.
“Too many passengers will now try to carry on even more rather than pay a fee,” Ms. Friend said.
“It’s the end of an era,” said Robert W. Mann Jr., an airline industry consultant in Port Washington, N.Y. Referring to the range of fees that customers face, Mr. Mann added, “Soon, like freight, we will pay by the pound for passenger air travel.”
The fees also will not apply to passengers who travel on full-fare coach or business class tickets, international travelers and passengers who hold premium status in American’s frequent-`flier program. American said it would not charge to check a car seat or stroller if a parent is traveling with a child, but other baggage charges would apply.
American posted details of the new charge on its Web site this morning.
American’s move follows steps in the last few weeks by major airlines to charge for checking a second bag.
Analysts said they expected that other carriers would watch passenger reaction to American’s decision and were likely to institute their own first-bag charges.
Passengers had mixed reactions to American’s latest move.
“They don’t even give you free food anymore and the costs just keep going up,” said Carol McLain, ofDetroit Athens , Greece
Added Martin McLain: “I will expect an upgrade from peanuts to cashews now.”
But Rick Mattingly, ofRockford , Ill. Chicago
American is not the first carrier in theUnited States United States
Likewise, Ryanair, a low-fare carrier inEurope , instituted baggage charges on its flights in 2006. It charges about $32 a bag for the first bag checked at the airport, or $16 for baggage space reserved online. Ryanair also charges an airport check-in fee of about $8 for passengers who are traveling with baggage.
American’s stock fell sharply in morning trading. Its shares fell 13 percent, to $7.13 in morning trading, and briefly traded below $7.
Nick Bunkley contributed reporting fromRomulus , Mich.
American, Cutting Back, Plans $15 Bag Fee
By MICHELINE MAYNARD
American Airlines, the nation’s largest air carrier, said Wednesday that it would begin charging $15 for many passengers to check their first bag, eliminating a free service that passengers in the
American made its announcement during the annual meeting held by its parent company, the AMR Corporation, in
At the same time, American said it would take up to 85 aircraft out of its fleet, including jets and commuter planes, by the end of the year, one of the biggest cutbacks since the airlines culled their fleets after the September 2001 attacks. American has about 960 aircraft at the mainline airline and its American Eagle subsidiary.
The reductions will translate to an 11 to 12 percent cut in service during the fourth quarter, American officials said. They said the airline would eliminate some jobs, but did not give specifics.
Airlines around the world have been hit hard by skyrocketing jet fuel prices, which have climbed 80 percent in the last year. The higher prices have prompted them to institute a raft of fare increases, surcharges and fees for services that previously had been free. Other airlines, including Delta and United, also have announced plans to reduce their fleets.
“Our company and industry simply cannot afford to sit by hoping for industry and market conditions to improve,” American’s chief executive, Gerard Arpey, told company shareholders.
American said it would assess the first-bag charge beginning with travel on June 15. The new charge applies to passengers who purchase discounted coach fare tickets within the
Passengers who have already bought tickets for travel after June 15 are exempt from the first-bag charge.
The extra baggage fees will only exacerbate the situation on already crowded planes, said Patricia Friend, the president of the Association of Flight Attendants, a union representing 55,000 employees at 20 airlines.
“Too many passengers will now try to carry on even more rather than pay a fee,” Ms. Friend said.
“It’s the end of an era,” said Robert W. Mann Jr., an airline industry consultant in Port Washington, N.Y. Referring to the range of fees that customers face, Mr. Mann added, “Soon, like freight, we will pay by the pound for passenger air travel.”
The fees also will not apply to passengers who travel on full-fare coach or business class tickets, international travelers and passengers who hold premium status in American’s frequent-`flier program. American said it would not charge to check a car seat or stroller if a parent is traveling with a child, but other baggage charges would apply.
American posted details of the new charge on its Web site this morning.
American’s move follows steps in the last few weeks by major airlines to charge for checking a second bag.
Analysts said they expected that other carriers would watch passenger reaction to American’s decision and were likely to institute their own first-bag charges.
Passengers had mixed reactions to American’s latest move.
“They don’t even give you free food anymore and the costs just keep going up,” said Carol McLain, of
Added Martin McLain: “I will expect an upgrade from peanuts to cashews now.”
But Rick Mattingly, of
American is not the first carrier in the
Likewise, Ryanair, a low-fare carrier in
American’s stock fell sharply in morning trading. Its shares fell 13 percent, to $7.13 in morning trading, and briefly traded below $7.
Nick Bunkley contributed reporting from
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