Southwest's free baggage is a hit

Lone US carrier that does not charge to check in first two bags gains market share

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3 MIN READ

Los Angeles : To the frustration of many travellers, the nation's 10 largest airlines collected about $740 million (Dh2.7 billion) in baggage fees in the third quarter of this year — a 111 per cent increase over the same period in 2008.

With those kinds of numbers from the US Bureau of Transportation Statistics it's hard to tell who is profiting most from the baggage fees — the airlines that charge to check your bags or Southwest, the lone carrier that still doesn't make you pay to check your first two bags.

In the third quarter of the year, Delta Airlines, the world's largest airline, collected the most baggage fees, $130 million — a 172 per cent increase over the same period in 2008.

But Southwest Airlines doesn't seem to be hurting by the decision to forego the fees.

Speaking last week in New York to the Wings Club, a group of aviation professionals, Southwest chairman Gary Kelly sounded nearly giddy about the company's success in 2009. He said he was "overjoyed" that Southwest now serves more passengers than any other US airline.

While the airline cut capacity by 5 per cent in 2009, it added service to four new airports — New York LaGuardia, Boston, Minneapolis-St Paul and Milwaukee. At the same time, he said the airline has gained a 1 per cent market share and even has offered all employees raises during one of the worst financial slumps in airline history.

"It's just been a very, very gratifying year," he said.

Kelly said the "bags fly free" strategy was a key reason the airline gained market share this year.

Julius Maldutis, an economist and consultant to the airline industry, called Southwest's no-fee strategy "absolutely brilliant."

"That is their key marketing strategy, and they are winning big," he added.

Henry Harteveldt, a travel industry analyst with Forrester Research, Inc, agreed, saying the strategy has helped Southwest gain market share. But he said the fees charged by the other airlines had resulted in huge revenues that the carriers wouldn't have collected otherwise.

In the war of bag-fee strategies, Harteveldt said "It's a draw."

For now, Southwest spokeswoman Olga Romero said the airline has no plans to change its fee policy.

"We never say never but then again, it is working for us," she said.

Another big source of revenue for airlines are in-flight meals. But what kind of nutrition do passengers get for their food dollar?

Charles Stuart Platkins, a nutrition expert, offers an annual ranking and analysis of many food options offered airline passengers, including calories and nutritional value. He hosts the We TV series I Want to Save Your Life.

Flight food

Continental Airlines won top honours in his ranking this year for offering a variety of options and low-calorie snacks and meals. Platkins, founder of dietdetective.com, likes the "petite cold sandwiches," light on the mayo.

American Airlines came in second with Platkins, who likes the "cheese and cracker snack tray." Platkins suggests weight watchers skip the crackers, however.

United Airlines came in third. It was criticised by Platkins for its selection of calorie-laden snacks, including a bag of potato chips (900 calories), a chocolate bar (510 calories) and shortbread cookies (540 calories).

To burn off the calories from a bag of airline chips, Platkins estimates that an average person would need to walk for nearly four hours.

"As far as the individual snacks are concerned, wow, those are some pretty high-calorie items," he said.

At the very bottom of the seven carriers ranked was Southwest. Platkins says the carrier doesn't offer much variety and few healthy options.

"Go for the nuts and skip the pretzels and other items," he advises.

— Los Angeles Times-Washington Post News Service

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