“In a move that other U.S. airlines may copy, Florida-based discounter Spirit Airlines plans to charge for every checked bag.
After June 19, customers may pay $5 each for their first two bags while booking online. At the airport, the charge goes to $10 for each of the first two bags. Additional bags will cost $100 each.
Some European and Canadian airlines already take a similar approach, but privately held Spirit will be the first U.S. carrier to charge for every checked bag. Spirit passengers are allowed one carry-on. Spirit links major U.S. cities to vacation spots in Florida and the Caribbean.
For Spirit, the change is expected to decrease the amount of checked baggage it handles as fliers consolidate bags or pack lighter, says Barry Biffle, Spirit’s chief marketing officer. Handling less baggage should improve the carrier’s operations. It also can help the airline hold down ticket prices, he says.
“People would prefer to have lower fares and this is one of the ways you can make that possible,” Biffle says.
Aviation consultant Robert Mann, of R.W. Mann in Port Washington, N.Y., says he believes it’s a matter of time before some U.S. airlines copy Spirit.
“They’d all like to do it,” Mann says.
Other than possible resistance from passengers, airlines also may be inhibited from following Spirit by practical considerations. It’s inefficient, for example, for an airline to handle a cash transaction at an airport counter.
Spirit management studied the change for the past year and updated technology to handle the charges, Biffle says. Based on its research, management expects that about 10% of passengers won’t like the change in policy, Biffle says.
“The positive reaction that you get out of the 90%,” Biffle says, “is, ‘Wow, you can keep fares even lower?’ “
Between 50% and 70% of Spirit’s fliers now check bags. The checked-bag strategy comes just a month after Spirit became the first U.S. carrier to limit customers to one bag of free checked luggage. It currently charges $10 for the second checked bag.
In 2006, Spirit completed the conversion of its fleet to new Airbus A319 and A321 aircraft from old MD-80s.
The planned change on luggage is part of a broader Spirit initiative to become an “ultra-low-cost carrier.”
Spirit has lowered most of its highest fares by 20% or more, Biffle says. After June 19, Spirit plans to discontinue business class.
Spirit also will start charging $1 for beverages, an idea that consultant Mann claims will be “dead on arrival.”
A year ago, commuter carrier American Eagle cut short an experiment to charge customers $1 for drinks because of poor response.” [Via USA Today]
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Thanks to Robert F. for the story
