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Sat, Nov 08, 2008

Delta Joins Other Legacy Carriers In Charging For Checked Bag

Airline's Attempt To Stand Apart Was Unsuccessful

Delta Air Lines had hoped to lure passengers this summer by virtue of being the only US "legacy" airline to not charge its customers a $15 fee for checked luggage.

As of last week, the Atlanta-based carrier may no longer claim that distinction... but before you lament Delta's joining with other carriers in charging for even one item of checked baggage, the airline has a message for you: they did try.

As it turns out, most passengers flying Delta this year assumed the airline had already started charging for checked bags... and they started bringing more carry-on luggage as a result.

"The increase in bags being carried on board Delta aircraft this year tells us that customers are not differentiating Delta as the only major airline not charging for a first checked bag," said Delta Chief Operating Officer Steve Gorman recently, reports TheStreet.com.

So, in a purely Machiavellian sense, Delta may perhaps be forgiven for implementing the checked baggage fee... following American, United, US Airways, Northwest, and Continental in doing so. After all, the airline was losing out on money many other airline passengers are apparently willing to pay, even if they grumble about it.

Delta's acquiescence to market pressure leaves Southwest and AirTran as two of only a handful of US airline holdouts in charging for all checked luggage.

It's unlikely Southwest will cave into pressure any time soon, as the low-cost carrier has gotten great publicity off its successful "Low Fares... No Hidden Fees" advertising campaign... but it seems your days of being able to check a piece of luggage on AirTran for free are numbered.

"We have elected not to [charge for a first checked bag], primarily because our largest competitor in Atlanta hasn't done it," AirTran CEO Bob Fornaro said during his Q3 earnings call last month. "We compete on two-thirds of our flights and 80% to 90% of our revenue. We prefer to be a follower in this situation rather than a leader."

However, if Delta were to add a first bag fee, Fornaro added, "we would strongly consider it."

FMI: www.delta.com, www.airtran.com

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