I just saw this report on a New York Times blog HERE today.  To summarize, supposedly people writing this blog have had it confirmed by insiders that United and US Airways are in merger talks.  Mind you, this wouldn’t be the first time this rumour has gone out although it has been some time since I’ve seen it.

It would make sense on several levels.  I’ve always thought that those two companies were more compatible than United and Continental both from a fleet point of view as well as a hub point of view.  It would definitely have some challenges in front of it as a merger in certain markets (Washington D.C. for instance) and labor issues that exist at both companies would kind of worry me about getting a real deal done.

I also wonder at who would run such a proposed entity.  Doug Parker of US Airways hasn’t shown much interest (if at all) in being second fiddle to anyone else in any proposed mergers.  United’s Glenn Tilton would likely be amenable to stepping up to a non-executive Chairman role or leaving altogether but there is a firm “second in command” at United in John Tague serving as President already and who likely expects to rise further with some real justification.  Since he and Mr. Parker are essentially contemporaries, they would definitely be in competition with each other to get the top executive job.

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Spirit Airlines has announced new fees for carry-on luggage.  Yes, carry-on luggage.  If you want to know who the *real* Ryanair Airlines is in the US, it is Spirit.  If you’re a member of their $9 Fare Club and pay for your carry on online, you’ll pay $20 for a carry-on bag.  If you don’t book your bag online but pay for it up to the ticket counter, you’ll pay $30.  If you don’t belong to the Fare Club and have to pay at the gate, it’s $45. 

Mind you, Spirit also charges $19.00 for 1st bag *checked* too. 

In general, I disapprove of baggage fees for any 1st bag but in Sprit’s case, I’m OK with it.  Why?  Look at their air fares.  If you play their game, you still save an incredible amount of money on their flights.  Only fools pay additional fees on their airfares that make the total cost approach other airlines. 

In a twisted way, Spirit’s fees kind of make more sense to me.  They’re unabashedly charging for the right conveniences and with scaled levels.  It is hard to argue against that approach. 

Will other US airlines adopt this approach?  Maybe.  Frankly, it may well be the more sensible approach to fees but if you do see an airline adopt this, you’ll see them lower or eliminate their 1st checked bag fee I suspect.  Airtran could be a good candidate for this approach perhaps.  I suspect the legacy airlines may avoid it as it targets their favorite customers:  the business traveler.  I definitely see Ryanair taking this challenge on in the near future.  It fits perfectly within their strategy.

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