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Airlines Get Billions From Unbundled Services
Hugh Pickens writes "In hearings before Congress, the Government Accountability Office (GAO) said that airlines reported revenue of $7.9 billion from baggage fees and reservation change and cancellation fees in calendar years 2008 and 2009 — fees on unbundled services that once were considered part of the ticket price. 'We believe that the proliferation of these fees and the manner in which they are presented to the traveling public can be confusing and in some cases misleading,' says Robert Rivkin, the Department of Transportation's general counsel. Published fares used by consumers to choose flights don't 'clearly represent the cost of travel when these services are added.' However, Spirit Airlines President and CEO Ben Baldanza defended the practice of unbundling, saying it allows his airline to charge lower fares (PDF) and allows the customers the choice to purchase the services or not."
I'm sure you pay more for clothes than a child. You use more resources, you pay more money. It's simple, really. No discrimination here.
There is a fine line between being a cultivated citizen and being someone else's crop. - A. J. Patrick Liszkie
I shouldna told ya that. I don't actually have a girlfriend, what with being a nerd and all. Where's the erase button?
"I disapprove of what you say, but I will defend to the death your right to say it." - historian Evelyn Beatrice Hall
The expedient service was what struck me most though; the next day a guy in a van drove up to where I stayed and dropped it off needing a signature and ID to confirm. All this was free, all of it was worked out and the lady at the desk looked astonished at me if I asked there was a fee to expedite getting my suitcase back - it contained mostly clothing that I could buy at a mall or whatever, but also a few items somewhat more important.
I actually used to work for a delivery company here in town at the airport (Was called state wide delivery) and our entire business was picking up lost luggage from the airline and making deliveries to peoples homes with it.
Any given day was easily 50 bags from the central Columbus airport, to be delivered anywhere in the state of Ohio.
There was a distance rate charged (At the time it was something like $8 for in the city, and went up the further out you were, up to something like $50 for a 3 hr drive)
On holidays like Christmas and new years, there was easily 500 bags a day to deliver for two weeks straight.
Even more amazing, we were one of two companies that existed that did solely this!
The lost luggage business is huge, and there is already an entire delivery system and pricing infrastructure for delivery setup that is just simply factored into their cost of doing business as a matter of course.
I've probably only personally taken 30 flights in my life, and I am completely amazed my luggage has never been misrouted even once. With the type of business we did, I don't see how that would be possible to not lose at least 1 out of 30 bags I've had go through airlines.