United’s folly? Will others follow?
United Airlines just announced that they are planning on charging passengers $25 to check a second piece of luggage. That means that starting on May 5, 2008, passengers can carry on one bag, plus a purse/computer bag and check in one piece of luggage weighing 50 pounds or less.
I predicted that luggage charges such as these were coming soon, way back in August of 2006. My article focused on domestic airlines, however it was British Airways that proved to be the first major airline that broke the two-bag barrier and began charging for the second piece of luggage. And the charges were dramatically high — $470 for an extra bag on a long-range international flight!! That got everyone’s attention.
For years, the airlines have been nibbling away at the “free” luggage limits. It all started when rules allowed three bags to be checked, then the rule changed to permit passengers to only check two bags and, now, we have arrived here in the good old USA with our first legacy carrier charging for the second piece of luggage. Thank heavens that the cost is only $25. But any additional bags will cost $100 apiece, up to four extra pieces of baggage.
Is this irresponsible? Will others follow? My take on the situation leaves me with an answer of “No, it is not irresponsible. It is actually a good business decision.” The answer to the second question is, “Yes, every legacy airline will follow, eventually — most likely they will match these charges prior to the May 5th implementation date announced by United.”
In my article, posted a year-and-a-half ago I noted:
“When carry-ons are added to that tally, it comes to about 2.5 bags per passenger. Some industry analysts say that domestic airlines handle as much in luggage weight as they do in passenger weight…”
“If you check out the FedEx Web site, you’ll see what he means. The estimated cost of shipping two 50-pound suitcases is $358 for delivery the next morning and $341 for delivery the next afternoon. Even second-day delivery is priced at $213. And these quotes are for just one way.”
“Now look at the airfares. According to Orbitz, the fares from Boston to Chicago for flights a month in the future start at $212 round trip and max out at $432. When shipping two 50-pound suitcases to Chicago and back costs more than flying a passenger and the same two suitcases, something is clearly out of whack.”
All the rules aren’t yet in place. There are still questions about sporting equipment such as golf clubs and skis or snowboards. However, the current policy allowing free check-in of these items will probably go the way of the cutting-room floor as well.
If passengers check more than one bag after May 5, 2008 on domestic flights, they should get ready to fork over 25 bucks for the second bag and even more for any additional luggage.
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