NYTimes.com Article: Airline to Ask Travelers

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for $10 for Showing Up
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Airline to Ask Travelers
for $10 for Showing Up

August 25, 2004
 By MICHELINE MAYNARD





To the long list of things that used to be free but that
airlines now want you to pay for, add walking up to the
counter to buy a ticket.

Northwest Airlines said yesterday that starting on Friday,
it would charge a $10 fee for issuing a ticket at its
airport check-in desks. A fee of $5 will be charged on
every ticket purchased over the phone from its reservation
lines.

The only way to buy a ticket directly from Northwest
without paying an extra fee will be through the airline's
Web site. It sells about 16 percent of its tickets that
way; 22 percent are bought over the phone, and only about 2
percent in person at airports.

The rest are sold through travel agents, or through
travel-booking Web sites like Expedia.com or
Travelocity.com.

Northwest said it did not think customers would be
inconvenienced. "If you still want free, free is
available," said Tim Griffin, the airline's executive vice
president for marketing and distribution.

Mr. Griffin said the move "gives customers control over how
much personal service they'd like to receive when buying a
ticket." He said it was akin to the common industry
practice of charging an extra fee for a paper ticket
instead of electronic ticketing.

Customers who pay the booking fees when originally buying
tickets will not be charged fees a second time if they
change their travel plans, beyond the fee that the airline
already charges for doing so.

Terry L. Trippler, a longtime industry consultant, said
that Northwest's move, which has not yet been tried by any
other major airline in the United States, would backfire.
"I can't see where the consumer benefits from this in any
way, shape or form," Mr. Trippler said.

Predicting that the new fees would become fodder for
late-night talk show hosts, he said, "I'm not often
speechless, but when I saw this, I sat back and said,
'What?' "

Northwest executives defended the fees as part of a broader
effort to reduce distribution costs by $70 million a year,
and said that the new policy was similar to those of
low-fare airlines like JetBlue Airways and Independence
Air. Northwest said those airlines charge $6 to $10 extra
for round-trip tickets not purchased through their Web
sites.

That is not how JetBlue and Independence Air would put it.
Rather, their Web sites offer discounts for travelers who
buy tickets electronically - $3 each way on JetBlue, $5
each way on Independence Air. Tickets bought at the airport
or from airline reservations lines are simply sold at the
advertised fare with no extra charge or discount.

Mr. Griffin said Northwest customers were smart enough to
figure out that the discount airlines were charging more
for buying tickets offline than online. "The math is the
math," he said.

American Airlines, a unit of AMR and the nation's biggest
carrier, said it did not plan to match Northwest's policy
but would study it. Other airlines did not comment.

Mr. Trippler said he was surprised by Northwest's attempt
to charge more for some tickets, given that the airline
industry has had almost no luck in trying to raise prices
to cover the high price of jet fuel, which has raised their
collective costs by billions of dollars this year.

"Northwest has been afraid to sell an around-the-world
ticket for $5 more than anybody," he said. "So I can't see
that this will stick."

Mr. Griffin, for his part, said he saw no danger of a
negative reaction to the charges from travelers who do not
own computers or have Internet access, many of them
low-income or elderly. He said he believed that the access
issue had long ago been resolved.

During a recent local power interruption that disabled his
home computer, Mr. Griffin said, his 14-year-old daughter
simply went to a nearby library for access to the Internet.


"It's publicly available, only a library card away," Mr.
Griffin said. "It's part of what we all do in 2004 in the
United States."

http://www.nytimes.com/2004/08/25/business/25air.html?ex=1094451902&ei=1&en=98fdba380714ec2b


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