Says Airlines Must "Change The Rules" To Survive

It's a policy lambasted by pundits, and hated by passengers: US Airways' decision to start charging for... well, pretty much everything, from a single checked bag to a bottle of water on its domestic flights. But CEO Doug Parker says it's the new cost of doing business.

In a recent interview with CNBC, the oft-maligned Chairman and CEO of the nation's fifth-largest carrier said airlines must "change the rules" in order to survive the new reality of high oil prices.

"All airlines are raising fares and you’ll see that continue," Parker said. "We’re trying to cover the cost of transportation. So the first thing we do is increase ticket prices to cover the cost and reduce the number of flights that are available."

As ANN reported, as of August 1 US Airways has taken the unpopular step of charging for all drinks onboard its planes... including a $2 charge for bottled water. The airline has also joined with carriers including American Airlines and United in charging $15 for the first checked item of baggage, as well as added fees for such niceties as pillows.

Later this month, the carrier also plans to stop showing movies on domestic flights... ostensibly to save the few precious pounds in video equipment.

Many passengers have responded angrily to the changes. Predictably, Parker defended the latest series of cost-cutting moves... noting the extra fees only "charge the customers who want to use the services, like a checked bag, and not charge customers who do not want to use them."

Perhaps overreaching to make a point, Parker then pointed out customers don't grumble when they pay extra for food and drinks at a baseball game.

Furthermore, he added, by cutting out optional niceties the airline is better able to use available funds on improving other aspects of its service, including on-time performance and decreasing the number of mishandled bags.

"We're the number-one airline in on-time performance in 2008 and we’re proud of it," he said.

FMI: www.usairways.com