Alaska Airlines adds a bag fee with a guarantee
USA Today’s Today in the Sky Blog is reporting that Alaska Airlines has announced that it will begin charging a 1st bag checked fee on July 7th. This announcement comes after reporting more losses for this past quarter.
I remain adamantly against the 1st bag checked fees being charged but must admit that if an airline was going to do one, it should do one in the manner of Alaska Airlines. Alaska Airlines is going to offer a guarantee that your bag will be at the carousel within 25 minutes of arrival or you receive $25 or 2500 frequent flier points.
This allows Alaska Airlines to compete better against legacy airlines by bringing their bag fees inline with the rest of them but offer greater value in the process. This is a guarantee that I suspect will net a real response for Alaska. No other bag check fee offers such a guarantee at present. To the contrary, all other airlines charging such fees continue to do so in light of rather severe delays and losses for baggage.
This addition also finds Southwest Airlines, last of the real majors and borderline legacy airline, the lone standout for baggage fees. Gary Kelly, CEO of SWA, was even badgered by financial analysts during a recent conference call to discuss the most recent quarterly reports to consider adding such fees. Kelly has steadfastly refused so far claiming that Southwest sees this move as being a strong negative among its customer base. I actually agree since their customers remain some of the most price sensitive in the market.
It also stands in contrast to Delta Airlines’ recent announcement of a $50 first bag checked fee for international flights. A move that I predict will ultimately be rescinded due to competition from both US and foreign based international carriers.
The question is whether or not other airlines currently charging such fees will be willing to offer similar guarantees. Since so few compete with Alaska Airlines right now, I suspect it will be resisted as competition. However, I also believe that one or more legacy airlines in the US will now begin considering the introduction of such a guarantee in order to bolster their position against their competitors. My pick? Delta Airlines or Continental Airlines.
Delta has an executive team that is well aware that the a la carte pricing model is successful but they are also the most cognizant of presenting real value for their product. Continental Airlines could steal a lot of press and thunder by making such a guarantee and it would also align them more close to Alaska Airlines, an existing Continental code share partner.
While the guarantee is in and of itself noteworthy, the time frame is pretty much guaranteed that they’ll never have to make good on it. What’s the incentive? Twenty-five minutes is about five to ten minutes too long, AFAIC…
-R
I think that it is a reasonable time limit for a guarantee. Particularly for an airline that flies into many airports where the logistics are against timely baggage claim service.
The real caveat is that they do exclude delays with a force majeure clause that arise from weather or other things out of their control.
I would not say it is perfect but I would say that it is a good example to set and one other airlines could stand to abide by,.