United adds fee for some to check second bag
George Raine, Chronicle Staff Writer
Tuesday, February 5, 2008
United Airlines will be charging some of its customers a new fee for checking more than one piece of baggage.
United fliers who purchase nonrefundable domestic economy tickets, and who are not elite members of the airline's frequent flier program, will be charged $25 for a second checked bag beginning May 5, the company said Monday. In addition to the fee for a second bag, the cost to check a third and a fourth bag will be $100 per bag for all customers.
"This was inevitable," Joe Brancatelli of New York, the editor of a Web site for business travelers called Joe Sent Me, said in referring to the cash-strapped nature of the airline industry.
No other airline rushed to match the baggage fee, which Chicago-based United estimates will generate more than $100 million annually for the company. But all the airlines are being pressured financially by rising fuel prices and other economic pressures, leading some analysts to believe other legacy airlines will soon follow suit in charging more for checking bags.
The fee will be assessed on passengers who don't have elite status in the Mileage Plus program at United or do not have at least Silver status at Star Alliance, the group of about 20 airlines internationally that have a relationship for expedited ticketing with United passengers. Premier status, the lowest elite tier, requires flying 25,000 miles annually on United, and Mileage Plus members who reach that level automatically have Silver Star Alliance status. Members of other Star Alliance airlines' frequent flier programs also can attain Silver status.
United described the change as "part of its continuing effort to offer customers choice, flexibility and low fares."
The $25 fee for the second bag will be assessed each time the luggage is checked.
Robin Urbanski, a spokeswoman for United, said research found that 1 in every 4 customers checks in a second piece of luggage. "Rather than having everyone offset the cost of extra bags, we are passing the fee to the people who check the extra bag," she said. "That way we keep the fares low for everyone."
Urbanski said extra bags contribute extra weight, and the heavier the airplane, the more fuel is required.
John Tague, executive vice president and chief revenue officer at United, said that with the new policy, "customers who check extra bags may continue to do so for a service fee, which enables us to offer competitive fares to everyone."
One consequence of the fee, said Minneapolis-based airline consultant Terry Trippler, will be that travelers will stuff more of their belongings into carry-on bags, and another will be that people will re-evaluate how they pack luggage.
"I expect to see the other legacy airlines do this," Trippler said. "A buck for a soda is right around the corner. They are looking for every penny of revenue they can find. But, given their revenue situation (at United), they may have made a wise decision."
Brancatelli was less forgiving. He said the change pertaining to passengers who purchase nonrefundable tickets is illusory because airlines can make all tickets nonrefundable.
"It's not about the cheapest. This is a cash grab, by their own admission," he said.
He added that he thinks it is possible United could rescind the new policy if the response is negative. "I'm not sure United will not back off," Brancatelli said. "The fact no one matched it immediately I find interesting."
The fee to check a second bag applies only to tickets purchased on or after Monday. Customers may pay the fee with a credit card at an airport kiosk or at the check-in counter. Customers were informed of the fee beginning Monday on United's Web site, www.united.com, and on e-tickets sent to passengers.
American Airlines spokesman Tim Wagner said the company had no comment on United's fee. "We'll watch how United's new policy plays out closely, just like we do any time there is any change in the industry," he said. "However, I cannot speculate about the future."
American's passengers are entitled to two free checked bags of 50 pounds or less each per passenger.
Delta Air Lines spokesman Anthony Black said the carrier has made no changes to its checked baggage policies or fees. Passengers also are entitled to check two bags of 50 pounds or less.
Virgin America, the startup airline based in Burlingame, permits passengers in the main cabin to check one bag free of change that can weigh up to 70 pounds. There is a fee of $10 for a second bag weighing up to 50 pounds. And there is a fee of $50 each for bags three through 10 weighing up to 50 pounds. There are fees for overweight bags, too. First-class passengers can check two bags for free.
E-mail George Raine at [email protected].
This article appeared on page C - 1 of the San Francisco Chronicle
