bag fee while CEO gets raise

[wood pecker]

Apparently we are not the only ones that get ticked when execs get a bonus while claiming times are hard.

I was recently asked 2 questions while attending a culdesac party. (That is 3 dads drinking after the kids go to bed)

1. How do CEOs of an airline get a bonus / pay raise despite still charging for bags?

The argument is if times are hard, need bag fees to make ends meet, then bonuses should not be paid. To an average passenger, he feels his bag fee is just free money for the execs bonus.

2. What would happen if a passenger tried to organize a boycott of bag fees at the gate until bonusses are paid back? (My guess is he would never fly again and be tasered by TSA)

I am sure Southwest could make the commercial since one of their favorite targets just got a raise / bonus.

 

[knightflyer]

YAWN...

 

[maxblast72]

Apparently we are not the only ones that get ticked when execs get a bonus while claiming times are hard.

I was recently asked 2 questions while attending a culdesac party. (That is 3 dads drinking after the kids go to bed)

1. How do CEOs of an airline get a bonus / pay raise despite still charging for bags?

The argument is if times are hard, need bag fees to make ends meet, then bonuses should not be paid. To an average passenger, he feels his bag fee is just free money for the execs bonus.

2. What would happen if a passenger tried to organize a boycott of bag fees at the gate until bonusses are paid back? (My guess is he would never fly again and be tasered by TSA)

I am sure Southwest could make the commercial since one of their favorite targets just got a raise / bonus.

Airtran's ancillary revenues (bag fees, seat assignment fees, etc) for 2009 were in the $250 million range (probably 80%+ were 1st checked, 2nd checked, additional checked, and overweight bag fees). Bob Fornaro, Airtran's CEO, got $2 million for 2009. Bag fees are not going anywhere. None of the airlines that charge for bags can afford to get rid of the extra revenue.

So far it seems that Southwest is doing well with the Bags fly Free campaign. We will have to wait and see if that is a long term winning strategy. If Airtran competed with Southwest on more than 10% of their system, Airtran might drop the bag fee but as long as Delta is charging bag fees, I don't see Airtran dropping the fees.

 

[FLYLOW22]

Kids were in bed? Why weren't the wives topless and headed for the hot tub?

 

[IAHERJ]

That's frowned upon in Peachtree City. It would have been discussed at the bible study the following week....

 

[SLOTH]

Not unless some of the priests/ministers were involved somehow.

 

[FlickerFade]

Fees of any sort discourage behavior. They have to carry less weight, etc. Then can take away a lav if there are fewer pax using them, etc.

Revenue via fees is not the goal. Discouraging behavior is.

That's business.

 

[IBNAV8R]

Fees of any sort discourage behavior. They have to carry less weight, etc. Then can take away a lav if there are fewer pax using them, etc.

Revenue via fees is not the goal. Discouraging behavior is.

That's business.

People don't travel without at least some luggage. To discourage reasonable luggage is to discourage air travel. Of course, CEOs don't seem to get that.

 

[jetflier]

I have heard that for AA contract to full restore all pay and bennies, that each pax fare would increase $4.83 !

Now there is a way for ALPA negotiators to "take it back" !!

 

[Draginass]

Why not? Employees have taken massive pay and benefit cuts while AA and other airline executives stuff obscenely fat bonuses in their pockets. It's all a matter of who has the keys to the cash box.