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.

 

[maxblast72]

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" !!

American hauled 86 million passengers in 2009. Aren't the American pilots are asking for more than $400 million in contractual gains for their next contract. I thought I read somewhere they were asking for 1992 wages/benefits plus cost of living up to the present.

 

[the palm]

why dont you miltiply 4.83 by 86 million captain oblivious.

 

[waka]

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.

Fees discourage pax from buying tickets. There is a breaking point to all of this nickel and dime the customers to profitability BS. ala US Airways with the water fiasco.

Discouraging behavior is the goal. Turning customers off to air travel is the result.

 

[Abernathy]

why dont you miltiply 4.83 by 86 million captain oblivious.

Seriously. Stupidity should hurt.

 

[FlickerFade]

Fees discourage pax from buying tickets. There is a breaking point to all of this nickel and dime the customers to profitability BS. ala US Airways with the water fiasco.

Discouraging behavior is the goal. Turning customers off to air travel is the result.

I'll trust the CEO of Ryan Air, the profitable inventor of fees in travel.
http://www.usatoday.com/travel/flights/item.aspx?type=blog&ak=67634293.blog

If we pilots were so smart, I believe we'd find a more profitable occupation than airline pilot. Go get a job of CEO rather than playing one on an internet chat board.

We're a funny breed. If only we could put these abilities to profitable uses.

 

[wood pecker]

I think the next southwest ad should show the AAI CEO bonus article that is in our crew room then show the pax bag fee going into a CEO piggy bank at the gate.

Of course I also wish more than 40% of our pilots could complete a free web survey that took less than 5 minutes. I know making up passwords is strenuous.

 

[AvroJockey]

I'll trust the CEO of Ryan Air, the profitable inventor of fees in travel.
http://www.usatoday.com/travel/flights/item.aspx?type=blog&ak=67634293.blog

If we pilots were so smart, I believe we'd find a more profitable occupation than airline pilot. Go get a job of CEO rather than playing one on an internet chat board.

We're a funny breed. If only we could put these abilities to profitable uses.

You have to know Michael O'Leary though...for the most part, he says things for the publicity. At a German press conference he said his plans for a First Class cabin on Trans-Atlantic flights will include booze and BJs for everyone.

This was about 3 years ago and Ryanair still is flying over the pond.

 

[Ticker]

I think the next southwest ad should show the AAI CEO bonus article that is in our crew room then show the pax bag fee going into a CEO piggy bank at the gate.

You mean this article ?

Good reading in the crew room. Wonder how long it stayed on the board....

 

[dillfer]

Aren't most bonuses contractually obligated? Is he supposed to give the money back if it's listed on his pay stub as a bonus, and if it's money that is owed to him? I doubt many of us would do that.