MUMBAI: Anyone who has boarded domestic flights within the US knows that check-in bags attract extra fees. In 2008, almost all airlines in the US started charging baggage fees, that is, extra fees payable for every checked-in bag (Southwest airlines is an exception, it allows two check-in bags free).
According to the US Department of Transportation (DOT), the 17 largest U.S.
airlines earned $3.36 billion in baggage fees in 2011, down slightly from $3.4 billion the year before. That is serious ancillary revenue and so it seemed there could be no good news on this front for passengers flying domestic in the US. Then last week, the DOT made it clear that airlines cannot jump rules on such fees without inviting penalty. Volaris, which is the third-largest Mexican airline, was fined $130,000 for failing to inform customers about applicable baggage fees.
Media reports said that Volaris violated regulations by advertising fares on its website without providing a link to potentially applicable baggage fees. By levying the fine, it was the first time that DOT enforced a new regulation that came into effect in January. Under this rule, airlines have to clearly disclose baggage fees on the first screen in which a fare quote is presented, and it also applies to foreign carriers when they sell tickets in the U.S.
As for earning from baggage fees,
Delta Air Lines has continued to hold on to the top spot. It earned close to $864 million in 2011. But it was lesser than what it earned the year before. This despite an increase in passenger traffic in 2011. And that is probably because passengers in the US have figured out ways to cheat on baggage fees. One of the perks handed out by branded credit cards are a waiver on baggage fees. So with smart use of plastic money, baggage fees can be avoided. Passengers are apparently also packing lighter.