Continental Airlines adds $15 luggage fee for 1st checked bag
05.09.2008 22:01
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- Source: cbc.ca
Continental Airlines Inc. said Friday it is charging some coach customers $15 US for a first checked bag, matching a similar fee imposed by most other major U.S. carriers. A company spokeswoman said the fee would help offset high fuel costs, which have caused Continental and other carriers to lose money this year. The fee took effect immediately on tickets for travel in the United States and Puerto Rico, the U.S. Virgin Islands and Canada for travel starting on Oct. 7 or later. Bags that exceed weight and size restrictions could be subject to additional fees, the airline said. Houston-based Continental said the fee wouldn't apply to elite members of its frequent-flier program, those in first- or business-class seats, customers travelling on full-fare economy tickets, or military personnel and their families travelling on official orders. Most U.S. airlines charge customers who check more than one piece of luggage. Among major carriers, AMR Corp.'s American Airlines, the nation's largest carrier, was the first to impose a fee for the first checked bag, beginning in June. AMR chair and chief executive Gerard Arpey conceded his airline took "a little bit of flack" for the fee. Continental's decision leaves Atlanta-based Delta Air Lines Inc. as the only holdout among the six so-called U.S. legacy carriers, and Southwest Airlines Co. also doesn't charge for the first bag. Continental chair and CEO Lawrence Kellner said this summer his airline was watching how the fee worked at other airlines whether it caused delays in boarding and whether customers would rather pay a fare increase than face a bunch of fees. "My general view is if those people need a product, how do we put that in an all-inclusive fare?" he said at the time. Travellers have 'high threshold' for pain: analystBut in the nearly three months since American's fee took effect and other carriers began matching it, it hasn't seemed to sway customers. "We thought we would see more of a market shift by not having the fee," Continental spokeswoman Julie King said Friday. "So we feel it's the right competitive move" to charge for a first checked bag. King said the fee would help offset fuel costs that remain high despite the recent decline in oil prices. Rick Seaney, CEO of airfare research site FareCompare.com, said customers are bothered by fees, but "have a high threshold for air-travel pain." Seaney said travellers are responding to the first-bag fees by carrying more stuff on board which is still free and packing lighter, "mainly because their choice of airlines and flight times [are] getting more limited every day." RelatedInternal Links'Flight Rights' to offer consumer protection for air travellersAmerican Airlines to charge for 1st checked bagIN DEPTH: The high cost of flyingConsumer Headlines'Flight Rights' to offer consumer protection for air travellersAirlines will be obligated to provide stranded travellers meal and hotel vouchers, though they won't be held responsible for inclement weather, under a federal consumer protection program announced Thursday.Food watchdog updates cheese recall for listeriosisCanada's food watchdog has released an updated list of cheeses recalled by Ivanhoe Cheese Inc. for listeriosis contamination.Continental Airlines adds $15 luggage fee for 1st checked bagContinental Airlines Inc. said Friday it is charging some coach customers $15 US for a first checked bag, matching a similar fee imposed by most other major U.S. carriers.Winnipeg to lose 'car-theft capital' distinction?The Winnipeg police force's stolen-auto unit say the city is well on its way to ditching its reputation as the auto-theft capital of Canada.U.S. posts drugs under safety probeHealth officials in the U.S. on Friday began publishing a quarterly list of prescription drugs under investigation for potential side-effects, with the aim of keeping doctors and patients better informed. Consumer Life FeaturesELECTRONICSBack to classGizmos to make school life more funIN DEPTHPersonal financeWhat to do when you can't pay your billsSAFETYRecalls and AdvisoriesENVIRONMENTGlobal population VHEMT: The case against humansBLOGFood BytesPerceptions of Kraft DinnerBLOGComm-OdditiesTeddy bear modelled on designer Karl LagerfeldPeople who read this also read …
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