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Old 10-09-2012, 04:28 PM   #1

DIS Dad #618
Fantasmic is not rainbows and unicorns; it is a full contact sport
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Join Date: Apr 2004
Location: now in Oregon
Posts: 2,106

Inside Flyer article on airline fees

The link is to a good article by Inside Flyer magazine on the current state of airline fees:

Ancillary revenue is low-lying fruit for struggling airlines. We take a look at fees and the frequent flyer.
As we, the DIS flying public, try to find the lowest price, it is important to understand why the airlines charge ancillary fees, and how they effect us:

While customers may not like paying extra for fees, the practice is a lifesaver for struggling airlines. And the airlines are able to pay less in taxes by having passengers pay more in fees, and less on fares. Gary Leff of View from the Wing explains, "I personally have predicted that they [fees] would arise in air travel, not because those fees will net more money from consumers to airlines (my guess is that the airfare plus fee will equal what airfare would otherwise have been) but because the surcharges will be revenue that isn't subject to the 7.5 percent federal excise tax on air transportation." He concluded, "Already that's a big driver of ancillary fees--taking money out of 'travel' and into 'other' buckets to reduce the tax burden on airlines, which is substantial."
Besides this point, the article also goes into ways to mitigate baggage, seat selection, and other fees. My favorite is via co-branded credit cards. Since I know my family makes an annual pilgrimage to visit the Mouse, having a card to lessen airline fees and provide companion fares is a real cost savings.

Just wanted to keep the DIS community informed!

What are your thoughts on baggage, seat, and other fees?
- Chris, DIS Dad #618.

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