Monday, October 1, 2007

Are the Airlines Taking Our Money to Pay Their Bills?

Although I am the wife of a NWA pilot and have the tendency to see both sides of the airline industry, I do agree with today's CNN report on the ridiculous (and often unnecessary) fees some airlines charge when your travel itinerary changes last-minute and you have to switch flights: http://money.cnn.com/2007/09/25/pf/raw_deal_airline_fees/index.htm?postversion=2007092615

Because it is indeed a raw deal.

Q: Are some airlines sucking money from passengers for no good reason but to make more profits to pay their bills?

A: Northwest Airlines (not mentioned in the article) charges a stiff $100 fee to change domestic flights last-minute. They join US Airways, United and American Airlines in the quest to charge passengers ridiculous penalties. And is it not coincidence that these same airlines have filed for bankruptcy in recent years?

Not zesty.

Q: Why do some airlines charge between $25 and $100 to change domestic flights when others charge nothing?

A: Southwest Airlines has got its business model right with the simple, no-brainer "customer first" policy. As the article says, SWA charges nada to switch itineraries, even last-minute. Although this is often stressful to the airline, this policy doesn't set out to take money where it already has money.

Because in my opinion, the airlines are indeed taking our money with no justifiable reason to back up these "fees".

I love this quote from Michelle Mohr, a spokeswoman for US Airways. She says that the change fee "is not something for us to make money on, it's to offset the cost of not having that seat for sale." She says that depending on the time frame and market "we might not necessarily have the chance to sell that seat again," she explained.

Great job trying to do your PR, Ms. Mohr, but let's just cut to the chase. The airline industry is making profit off of your lost seat on the plane, whether they give it to a standby passenger (who still must pay unless considered a "non-rev" standby) or they sell your seat last minute for triple the price you paid. Worst-case scenerio, no one occupies your seat and the seat remains empty for one leg of a flight. Either way, the fee you pay is the price (or more!) a standby passenger would pay anyway. So the airlines have managed to charge YOU to pay for a seat either way (occupied or not).

Something to think about before you book your next flight, that is for sure. So much for flying the friendly skies!

And hurray to Southwest for being (as always) fair to its customers.

1 comment:

Anonymous said...

Very well put. I was very excited to move to an area where flying was "cheaper" (used to live in a really remote area and there was no such thing as a cheap ticket) only to find out that a ticket from Austin to Orlando on average costs $300!! UGH - I will never reap the benefits of a "cheap" ticket esp. with the extra costs!