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Big airline news day: American to charge for all checked bags, and plans deep cuts in capacity. At Southwest, celebrating end of an era

American Airlines probably surprised few with an announcement, on the day of its annual shareholders' meeting, that it would start charging $15 for the first bag you want to check on a flight. Delta said it wasn't matching yet, but other airlines haven't been heard from. We all know what that means, don't we? American, the world's biggest carrier (at least until the Delta-Northwest nuptials) also said it would park more planes, cutting seats for sale by 11 to 12 percent. Outside the meeting, picketing employees called for the heads of senior managers, saying passengers and employees weren't being well served by the guys in charge. Here's the AP story on that one.


Contrast that with what was happening a few miles away at Southwest's annual meeting, where co-founder Herb Kelleher and longtime sidekick Colleen Barrett stepped down as chairman and president, respectively. Gary Kelly, who's been CEO and running the airline for three years, was named to both their former posts. And the really big news: No employee pickets reported. We'll have more to say about these developments later.

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Comments (3)

Alex Wong:

American is in the process of replacing those aged and gas-guzzling MD-80s and I bet they wish they could do it sooner rather than later. Having finally achieved "Gold" status with them, I hope American can weather the current storm. The low morale of the flight attendants is very apparent on some flights.

For clarification, I don't think long time American fliers will have to pay the $15.

Would this make me change my airline of choice? I've flown Frontier and United this year. United isn't in much better shape and they were shuffling flight times. Frontier is running a skeleton crew at PHL and at SJC (my business destination); I like how they don't have a 1st class section and give everyone a couple of inches more, but I can't see how they can maintain the flights they have out of PHL.

Robert Eldridge:

Hi Tom,
I enjoy reading your articles in the Inquirer. I wanted share with you an experience that recently experienced with USAir. Perhaps you have heard how USAir calculates your new ticket cost when you change your ticket. Most people think , and they only advertise that there is a rebooking fee of $ 100 for this service. What they fail to tell you is that any difference between your old ticket price and the new one ( if there is a credit amount ) is not refunded or usable for another / future flight. For example if your original ticket PHL to LAX is $ 1600. and you need to change the ticket and your new fare is $ 1200. you do not get the $ 400 as a credit towards a future flight. AND you cannot use the credit to pay for the rebooking fee. - They want a new CC number for that.

This is what happen to me. I purchased a ticket on USAir to go PHL to SEA in First class. The ticket total was $ 2300.
My meeting was cancelled so I wanted to use the ticket to attend a tradeshow in Las Vegas. The First Class fare to LAS was
approximately $1500. I was told by the reservationists on the Platinum Desk that I would lose the balance of $800. And that USAir does not refund the balance any more. On top of that she wanted a CC number for the $ 100 change fee. She would not take the fee out of the credit balance.

I need your direction to whom I can complain. The State Attorney General? Lynn Abraham? Obviously going to
USAir directly is fruitless. I would appreciate any direction you can provide.

Robert


Jim McCloskey:

Hey, Robert...I winced when I read your tale about disappearing travel funds.

I've become a true fan of Southwest since they arrived in Philly. Some hated the old cattle call for boarding, but that has been changed for the better.

Your story wouldn't happen on Southwest. If you cancel a flight, the funds are available for ANY flight during the next twelve months. I was even able to apply past unused funds as the $5.00 9/11 Security fee on a free Rapids Rewards flight. Can't get much better than that.

You can get to both Seattle and Vegas on Southwest out of Philly. Vegas has a couple non-stops from PHL each day, and Seattle is a one stop thru Midway.

They don't have first class, but I tell friends that with all leather seats, EVERY seat is first class.

Give them a try. It's not just the people at SW, it's the ease of on-line booking, no lost bags, and all the non-flight issues that you bring up.

No, I don't work for Southwest. Maybe in my next career.

Jim

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Author

Tom Belden, a former Inquirer business writer, has written about Philadelphia International Airport, airlines, the travel industry, the conventions and meetings business for 25 years. He has traveled to all 50 states and extensively in Europe and Mexico.


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This page contains a single entry from the blog posted on May 21, 2008 3:05 PM.

The previous post in this blog was UPDATE: PHL gets top rating from J.D. Power; in another measure, airlines get low marks overall .

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