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Mon, Sep 08, 2008

Continental Latest To Join Rabble On First Bag Charge

Delta, Southwest Only Remaining Options To Fly With At Least One Bag Free

Customers have complained loudly about all the new fees for checked bags being charged by most major US airlines. But the airlines bet that we'd keep on flying... and apparently, they're winning the bet.

Continental Airlines was one of the last holdouts, but effective last Friday, fliers buying discounted economy-class tickets purchased for travel after October 7th are being charged an extra $15 for the first checked bag. The airline also announced it will trim bonus mileage earned by members of its awards program starting November 15.

Rick Seaney of FareCompare.com told the Cleveland Plain Dealer the decision is not surprising, given the competition among airlines, and how closely they match each other on fares and fees. In fact, he says, Continental is smart for letting other airlines test the idea, and take the heat from consumers.

Seaney says Delta Air Lines is now the only US legacy airline with no fee on the first checked bag. Delta, however, charges $50 for the second checked bag, the highest second-bag fee in the industry.

If you want to avoid baggage fees altogether, low-cost carrier Southwest would appear to be passengers' only option. The Dallas-based airline does not charge for the first checked bag... or the second.

Continental says it will not charge the new fee on tickets sold to first-class or business-class customers, OnePass Elite and SkyTeam Elite members, military personnel or their families traveling on official orders, or travelers paying the full, undiscounted coach fare. International flights, and those to Puerto Rico, the Virgin Islands or Canada will also be exempt.

The news that passengers haven't reduced their flying over the fees means charges for checked bags are probably here to stay. Continental CEO Larry Kellner told investors in a recent conference call that passengers are bringing fewer checked bags with them, which means planes are flying lighter and burning less fuel.  

If the new policies mean passengers are trying to cram more stuff into their carry-ons, Seaney notes the airlines say it's not a big deal. But he adds, "I think if you asked flight attendants and passengers, you might get a different opinion."

FMI: www.continental.com

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