The president of Spirit does a good job of justifying the new fee. It seems like it will be more or less revenue neutral for them, with the proceeds being used to reduce ticket prices and checked bag fees, and the resulting reduction in carry on bags should help reduce the overcrowding of overhead bins and the associated delays. On the whole, anyone who is traveling without a carry on will pay less and have a better experience. It's a gutsy move that the company has taken a lot of heat for, but it also solves a problem by exploiting the fact that people respond to incentives. I suspect that the backlash against the fee might make this a net loss for Spirit, but that's the nature of a competitive market, and I think that the management of Spirit at least deserves credit for experimenting with this solution.
And with that, enter the politicians:
Seven U.S. senators have backed proposed legislation concerning the Florida-based airline's carry-on fee.
"We are going from the sublime to the ridiculous with airlines," Sen. Frank R. Lautenberg (D-N.J.) said at a news conference last week in Washington.
Sen. Charles E. Schumer (D-N.Y.) called the fee a "slap in the face to travelers." Sen. Jeanne Shaheen (D-N.H.) called it "skyway robbery."
The lawmakers hope to put the kibosh on the fee by imposing a tax on all airline revenue collected from such charges.
Ah, yes: because people who voluntarily purchase tickets to fly with a particular airline are helpless victims who desperately need to be protected. I can't imagine that this legislation will actually go anywhere, but considerably more idiotic things have happened. If this legislation does get passed, it will be a fantastic example of destructive political showmanship.
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Notable that the (all Democratic) Senators think they know best - all that experience running airlines, no, make that community organizing, tells them they need to protect customers from the evil capitalists running Wall Street, drat, I mean Spirit!
Of course this needs legislation - another set of laws to prevent....
Funny how they never bring in laws to allow, only to prevent or limit - then they wonder why their approval ratings are so low. That truly demonstrates how stupid and arrogant they are.
Good job presenting the free market benefits (and risks) of this idea, Max!
Wow. I knew Schumer is a joke, but I didn't know Shaheen is.
Welcome back, Max!
Of course, under the new Hope and Change, the really efficient way to price airline tickets and add-ons would be by voting record. Or better yet, campaign contributions! Contribute to the party of Obamelosi & Reid, and you can deduct the amount from the price of your federally-regulated air travel (and maybe qualify for mileage-plus bonus points that will earn you special refunds on the future VAT). Contribute to the unpatriotic opposition, and the amount of your contributions will be added as a surcharge to your air travel fees. Possibilities here?
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