SFGate: United adds fee for some to check second bag

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Tuesday, February 5, 2008 (SF Chronicle)
United adds fee for some to check second bag
George Raine, Chronicle Staff Writer


   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 w=
ho
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 poli=
cy
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 graine@xxxxxxxxxxxxxxxx -------------------------=
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Copyright 2008 SF Chronicle

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