Profile: pixelvisions
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What's Happening Now
July 25, 2010 5:10 pm
It is my understanding that airlines pay a federal excise tax on fares; they do not pay on “fees”, so they want to separate them to save money.
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I personally think that airlines should be able to price “a la carte” as price discrimination (despite the name) tends to benefit everyone. Baggage fees are an exception, though.
Airlines are incentivized to charge baggage fees so they can post lower base prices. In turn this encourages fliers to cram luggage in the cabin, which is irritating to say the least. But the issue is that it seems unreasonable to expect travelers to fly without any luggage. Discriminatory pricing should be truly discriminatory — like seat location, not luggage and bathrooms and water.
Airfare should include at least one free checked bag. If all fares were somewhat higher as a result, the damage to an airline’s bottom line should be minimized. (After all, what substitutes do we have to air travel?)