Will airlines and passengers call a truce?
February 25, 2010 ·
But the fees are a fraction of what the carriers could collect if they could charge more for tickets. “Not everybody eats. Not everybody drinks. Not everybody checks a bag,” says Mr. Bergsrud.
Though he did not want to pay extra for his seat, Mr. Stewart, the commodities trader, says he’d rather see airlines charge for options like a pillow or a blanket than raise ticket prices so that every passenger could receive one. “It’s better to charge the 10 people who want them,” he says.
Still, there is some evidence that fewer fees help attract passengers. Southwest Airlines, the largest low-fare airline in the United States, gained a point of market share in 2009 and attributed the increase to its decision not to charge for checking a first or second bag.
Its chief executive, Gary C. Kelly, says his competitors are damaging their relationship with customers by rolling out so many changes so quickly.
“They view customers as just numbers on a list, as opposed to thinking about how they can best meet their needs,” says Mr. Kelly. “It’s kind of silly to say, ‘We want to win more passengers’ but not let them take a bag when they travel.”
Mr. Kelly, whose airline earned money in 2009, a year when the rest of the industry collectively lost about $5 billion, agrees that many carriers will not survive if they are not profitable. “That’s a given,” he says. “But you can decide whether to take care of people and treat customers like guests in your home.”
Mr. Hayes at JetBlue agrees that attitude has to be fundamental. “You have to build a culture around wanting to serve customers,” he says.
But neither airline has escaped criticism this past year. Southwest, which for a time embraced “Freedom From Fees” as its advertising slogan, dropped that in favor of “Bags Fly Free” after it began charging for extras like securing a place in the first boarding group, which costs $10.
JetBlue has also upset some passengers, including Mr. Mann, the analyst, for charging to change a reservation and to select seats with extra legroom.
But the fees allow customers to “choose what they want,” says Mr. Hayes.
Amid the anger about taking apart a plane ticket, analysts are beginning to wonder if airlines might be better off “rebundling” their tickets, although that isn’t likely to happen soon.
Until the airlines change their minds, analysts and passengers say openness by the airlines could offset some of travelers’ irritation. Beverley Cochran, a nurse from London who works in New York, says she understands the airlines’ predicament.
“They have to figure out how to make money,” Ms. Cochran says. “I’m a realist. I know they have to do this, or put the prices up. As long as it’s not underhanded, I’m O.K. with it.”
But she, and Mr. Lad from Los Angeles, put limits on what they are willing to accept. For Ms. Cochran, it would be paying for water or pretzels. To Mr. Lad, the line is drawn at charging for carry-on bags.
“For a lot of people, that would be a deal breaker,” he says.


