Spirit Airlines CEO Defends Fees; Says Bags Are 'Not Essential' For Vacations

http://abcnews.go.com/print?id=11162586

Spirit Airlines CEO Defends Fees; Says Bags Are 'Not Essential' For
Vacations
Tells Congress Cheap Airfares Are a Result of Added Fees
By SCOTT MAYEROWITZ
July 14, 2010—


The head of the nation's most fee-happy airline told Congress today
that bringing luggage on vacation was "not essential" to travel and
his airline was actually helping the poor fly by charging up to $45 to
place a carry-on bag in the overhead bin.

"We are certain that Spirit's decision to unbundle services not
essential to the transportation of passengers, has enabled more
passengers to fly at lower cost," said Spirit Airlines CEO Ben
Baldanza. "Indeed given our low fares, it has allowed many to travel
who otherwise simply could not afford to do so."

And it's not just carry-on bags that Spirit charges for.

Want to pick your seat in advance? That will cost anywhere from $8 to
$60 depending on the seat. Yes, Spirit does charge you extra even to
reserve the much-dreaded middle seat.

Want a nice cold Coca-Cola, Sprite or even a cup of hot coffee? That
will cost you an extra $2.

"Spirit's business model to provide maximum choice to passengers to
purchase the specific services they want, while keeping fares as low
as possible, is unique among U.S. airlines," Baldanza told Congress.

"Carrying more than one bag is not necessary for all travelers and we
believe it is unfair to charge those customers for extra services they
do not use -- indeed, it is the basis for Spirit's policy to unbundle
services not essential to passenger transport," he added.

Stay Up to Date on the Latest Travel Trends from ABC News on Twitter

In the past three years, airlines have started to charge for once-free
services. It is now standard practice on most airlines to pay $25 to
check a piece of luggage. But Spirit went one step further in April,
announcing it would start on Aug. 1 charging passengers $20 to $45 to
place a carry-on bag in the overhead bin. (Bags squeezed under the
seat would still be free, but that would likely eliminate any leg room
on the airline which already has the least amount of space between its
seats.)


Forget Cheap Airfare, Expect Fees
Spirit already takes in a higher percentage of fees than any other
airline in the United States.

The airline -- which, by the way, is installing seats that don't
recline on its new jets -- took in 21 percent of its revenue from fees
at the end of 2009, according to the Department of Transportation.
That's way above the industry average of 6.5 percent. The next closest
airline was AirTran at 10.7 percent, followed by Allegiant at 10
percent, Delta at 9.1 percent, and US Airways at 8.5 percent.

And that's before Sprit starts imposing the new carry-on fee.

It was the announcement of that fee that might have been the final
straw. The idea of paying for carry-on bags enraged many members of
the public and Congress. In response, the Department of Transportation
in June announced a new set of rules and regulations that would force
the airlines to be more transparent about their fees and even allow
passengers to get a refund within 24 hours of buying tickets. Congress
is also considering subjecting the added fees to the 7.5 percent tax
already levied on airline tickets.

Defending his airline's fees today, Baldanza said that without them,
he wouldn't be able to keep base airfare prices so low. He also said
Spirit had such a high percentage because its fares were so much lower
than the other airlines.

"The primary reason for the carry-on charge was to reduce the amount
of baggage brought into the cabin," he added." Carry-on bags have
become a nightmare for passenger boarding and deplaning. They create a
safety risk for both passengers and flight attendants and lead to
costly flight delays."

In March, the Association of Flight Attendants reported that 80
percent of flight attendants had been injured during the last year by
moving carry-on bags in and out of overhead bins.

Baldanza said Spirit doesn't just help its passengers with low fares,
but "provides an important public interest service" by keeping other
airlines in check.

"Spirit's impact was clearly demonstrated when its pilots went on
strike last month and other carriers, including low fare carriers,
immediately raised prices," Baldanza said. "For example, JetBlue
raised its roundtrip fare in the Fort Lauderdale-San Juan, Puerto Rico
market from under $200 to over $600."



Checked-Bag Fees Are Here to Stay
Most airline experts don't see the fees going away anytime soon.

"Airlines have become addicted to fees in the same way that state
government has become addicted to cigarette taxes," George Hobica,
president of airfarewatchdog.com, recently told ABC News. "I don't see
them going away anytime soon, if ever. They spell the difference
between insolvency (as in ceasing to fly) and merely losing billions
of dollars."

But what really alarms many is the rate at which those fees are
climbing.

Last year, U.S. airlines took in more than $7.8 billion in fees from
passengers, according to the DOT's Bureau of Transportation
Statistics. But in the last three months of 2009, the airlines charged
passengers $1.9 billion in extra fees, up a whopping 18.3 percent from
the same period the prior year.

That is why the DOT, under the leadership of Transportation Secretary
Ray LaHood, has taken a more active role and proposed the new rules.

The flying public often lacks a "clear and adequate disclosure of
these fees by airlines" and are unable to determine the true cost of
their ticket prior to purchase, the DOT's general counsel, Robert S.
Rivkin, told Congress today.

The General Accounting Office released a 50-page report today on all
of the fees. It includes a comprehensive list of all the fees imposed
by airlines for optional services.

"While the general concept of unbundling airline services gives
consumers the option to pay for only the components they want, at
least in theory, many airlines have crossed the line when it comes to
ancillary fees," Anne Banas, executive editor of travel Web site
SmarterTravel told ABC News. "As a result, it has become extremely
difficult for consumers to effectively compare prices and make
informed choices when purchasing a fare, and airlines have been taking
advantage of that fact, especially by not disclosing fees
appropriately."



Southwest Airlines' No-Fee Philosophy
Not all airlines think fees are necessarily.

Dave Ridley, senior vice president of marketing and revenue management
at Southwest Airlines, told the House Committee on Transportation and
Infrastructure's Subcommittee on Aviation today that his airline
refuses to "nickel and dime" passengers.

Southwest, which has grown to become the nation's largest domestic
carrier, has a philosophy of not charging passengers "for things they
have historically received for free."

That doesn't mean that Southwest is immune to the fee bonanza. It
isn't. The airline, which doesn't have assigned seating, has imposed a
$10 fee allowing passengers to cut the boarding line and pick their
seats and overhead bin space first.

Ridley told Congress that the airline still doesn't charge for
checking a first or second bag, "or to carry on a bag for that
matter." There are no fees to make a reservation over the phone
(something rare in the industry) and there are no surcharges for fuel
or traveling on a peak day.

"And, as always, snacks, sodas, smiles and the occasional bad joke are
all complimentary at Southwest Airlines," he said.

However, Southwest said that the decision to impose fees or not should
be left up to the individual airlines, as long as they are clearly
disclosed.

"Southwest made the conscious decision to limit our customers' fee
exposure to what we view as unreasonable and annoying fees. That was
our choice," Ridley said. "Other airlines have chosen a different
business model and should have every right to do so."


Copyright © 2010 ABC News Internet Ventures

I think they should let your 1st bag free at least........

--
http://www.moviesitearchive.com


On Jul 14, 1:34*pm, Brian wrote:
http://abcnews.go.com/print?id=11162586

Spirit Airlines CEO Defends Fees; Says Bags Are 'Not Essential' For
Vacations
Tells Congress Cheap Airfares Are a Result of Added Fees
By SCOTT MAYEROWITZ
July 14, 2010—

The head of the nation's most fee-happy airline told Congress today
that bringing luggage on vacation was "not essential" to travel and
his airline was actually helping the poor fly by charging up to $45 to
place a carry-on bag in the overhead bin.

"We are certain that Spirit's decision to unbundle services not
essential to the transportation of passengers, has enabled more
passengers to fly at lower cost," said Spirit Airlines CEO Ben
Baldanza. "Indeed given our low fares, it has allowed many to travel
who otherwise simply could not afford to do so."

And it's not just carry-on bags that Spirit charges for.

Want to pick your seat in advance? That will cost anywhere from $8 to
$60 depending on the seat. Yes, Spirit does charge you extra even to
reserve the much-dreaded middle seat.

Want a nice cold Coca-Cola, Sprite or even a cup of hot coffee? That
will cost you an extra $2.

"Spirit's business model to provide maximum choice to passengers to
purchase the specific services they want, while keeping fares as low
as possible, is unique among U.S. airlines," Baldanza told Congress.

"Carrying more than one bag is not necessary for all travelers and we
believe it is unfair to charge those customers for extra services they
do not use -- indeed, it is the basis for Spirit's policy to unbundle
services not essential to passenger transport," he added.

Stay Up to Date on the Latest Travel Trends from ABC News on Twitter

In the past three years, airlines have started to charge for once-free
services. It is now standard practice on most airlines to pay $25 to
check a piece of luggage. But Spirit went one step further in April,
announcing it would start on Aug. 1 charging passengers $20 to $45 to
place a carry-on bag in the overhead bin. (Bags squeezed under the
seat would still be free, but that would likely eliminate any leg room
on the airline which already has the least amount of space between its
seats.)

Forget Cheap Airfare, Expect Fees
Spirit already takes in a higher percentage of fees than any other
airline in the United States.

The airline -- which, by the way, is installing seats that don't
recline on its new jets -- took in 21 percent of its revenue from fees
at the end of 2009, according to the Department of Transportation.
That's way above the industry average of 6.5 percent. The next closest
airline was AirTran at 10.7 percent, followed by Allegiant at 10
percent, Delta at 9.1 percent, and US Airways at 8.5 percent.

And that's before Sprit starts imposing the new carry-on fee.

It was the announcement of that fee that might have been the final
straw. The idea of paying for carry-on bags enraged many members of
the public and Congress. In response, the Department of Transportation
in June announced a new set of rules and regulations that would force
the airlines to be more transparent about their fees and even allow
passengers to get a refund within 24 hours of buying tickets. Congress
is also considering subjecting the added fees to the 7.5 percent tax
already levied on airline tickets.

Defending his airline's fees today, Baldanza said that without them,
he wouldn't be able to keep base airfare prices so low. He also said
Spirit had such a high percentage because its fares were so much lower
than the other airlines.

"The primary reason for the carry-on charge was to reduce the amount
of baggage brought into the cabin," he added." Carry-on bags have
become a nightmare for passenger boarding and deplaning. They create a
safety risk for both passengers and flight attendants and lead to
costly flight delays."

In March, the Association of Flight Attendants reported that 80
percent of flight attendants had been injured during the last year by
moving carry-on bags in and out of overhead bins.

Baldanza said Spirit doesn't just help its passengers with low fares,
but "provides an important public interest service" by keeping other
airlines in check.

"Spirit's impact was clearly demonstrated when its pilots went on
strike last month and other carriers, including low fare carriers,
immediately raised prices," Baldanza said. "For example, JetBlue
raised its roundtrip fare in the Fort Lauderdale-San Juan, Puerto Rico
market from under $200 to over $600."

Checked-Bag Fees Are Here to Stay
Most airline experts don't see the fees going away anytime soon.

"Airlines have become addicted to fees in the same way that state
government has become addicted to cigarette taxes," George Hobica,
president of airfarewatchdog.com, recently told ABC News. "I don't see
them going away anytime soon, if ever. They spell the difference
between insolvency (as in ceasing to fly) and merely losing billions
of dollars."

But what really alarms many is the rate at which those fees are
climbing.

Last year, U.S. airlines took in more than $7.8 billion in fees from
passengers, according to the DOT's Bureau of Transportation
Statistics. But in the last three months of 2009, the airlines charged
passengers $1.9 billion in extra fees, up a whopping 18.3 percent from
the same period the prior year.

That is why the DOT, under the leadership of Transportation Secretary
Ray LaHood, has taken a more active role and proposed the new rules.

The flying public often lacks a "clear and adequate disclosure of
these fees by airlines" and are unable to determine the true cost of
their ticket prior to purchase, the DOT's general counsel, Robert S.
Rivkin, told Congress today.

The General Accounting Office released a 50-page report today on all
of the fees. It includes a comprehensive list of all the fees imposed
by airlines for optional services.

"While the general concept of unbundling airline services gives
consumers the option to pay for only the components they want, at
least in theory, many airlines have crossed the line when it comes to
ancillary fees," Anne Banas, executive editor of travel Web site
SmarterTravel told ABC News. "As a result, it has become extremely
difficult for consumers to effectively compare prices and make
informed choices when purchasing a fare, and airlines have been taking
advantage of that fact, especially by not disclosing fees
appropriately."

Southwest Airlines' No-Fee Philosophy
Not all airlines think fees are necessarily.

Dave Ridley, senior vice president of marketing and revenue management
at Southwest Airlines, told the House Committee on Transportation and
Infrastructure's Subcommittee on Aviation today that his airline
refuses to "nickel and dime" passengers.

Southwest, which has grown to become the nation's largest domestic
carrier, has a philosophy of not charging passengers "for things they
have historically received for free."

That doesn't mean that Southwest is immune to the fee bonanza. It
isn't. The airline, which doesn't have assigned seating, has imposed a
$10 fee allowing passengers to cut the boarding line and pick their
seats and overhead bin space first.

Ridley told Congress that the airline still doesn't charge for
checking a first or second bag, "or to carry on a bag for that
matter." There are no fees to make a reservation over the phone
(something rare in the industry) and there are no surcharges for fuel
or traveling on a peak day.

"And, as always, snacks, sodas, smiles and the occasional bad joke are
all complimentary at Southwest Airlines," he said.

However, Southwest said that the decision to impose fees or not should
be left up to the individual airlines, as long as they are clearly
disclosed.

"Southwest made the conscious decision to limit our customers' fee
exposure to what we view as unreasonable and annoying fees. That was
our choice," Ridley said. "Other airlines have chosen a different
business model and should have every right to do so."

Copyright © 2010 ABC News Internet Ventures

On Sat, 17 Jul 2010 03:54:02 -0700 (PDT), jessica_smith_nyc wrote:

I think they should let your 1st bag free at least........

Or just charge for a combined weight for passenger
plus any bags. So much per pound, a little old lady
or kids weighing 100 lbs plus a 20 lb bag are still less
than some obese 300 pounder.

In Brian
wrote:

Spirit Airlines CEO Defends Fees; Says Bags Are 'Not Essential' For
Vacations

Earlier comments suggested that their base fares were cheaper than their
competitors, and only when you added their charges for "options" did
they begin to be as high as the others.

True?

--
Bert Hyman St. Paul, MN

"Bert Hyman" wrote in message
. ..
In Brian
wrote:

Spirit Airlines CEO Defends Fees; Says Bags Are 'Not Essential' For
Vacations

Earlier comments suggested that their base fares were cheaper than their
competitors, and only when you added their charges for "options" did
they begin to be as high as the others.

True?


Do Spirit charge passengers to check-in? Ryanair does.
http://www.ryanair.com/en/questions/table-of-fees

--
JohnT