American Airlines is in the process of setting a very troubling precedent. It has now said that passengers flying on its airlines domestically will have to pay $15 to check a bag and check a second bag, that will be $25 more. All this will commence on or around June 15, 2008. The reason–rising fuel costs. The airline said that it will also lay off workers and cut domestic routes. The problem is that the consumer is always getting screwed royally in the process. So, are we now supposed to carry all our sh** in our carry on bag to avoid these fees? The consumer ultimately gets screwed in just about all these hair-brained schemes.
So, according to media reports, with skyrocketing fuel costs threatening their viability, many of the nation’s big airlines are set to retrench in ways that passengers won’t like one bit. Making a move that analysts expect other major airlines will follow. American Airlines, also unveiled deep service cuts it intends to make this fall, a time when air travel traditionally slows, and when cash pressures are expected to become dire for U.S. airlines.”The airline industry as it is constituted today was not built for $125 [per barrel] or $135 oil,” Gerard Arpey, American’s chief executive, told reporters. “It can’t continue in its present state.”
This is major because I believe it will set the stage for the next round of painful cuts that will definitely affect you and I, the consumer. In addition to charging more fees, more airlines will have to shrink on a large scale, reducing the number of flights they provide and eliminating service to some smaller cities to save money and stave off bankruptcy, analysts said. Yeah, packing travellers like sardines. The airlines hope fewer seats will allow them to raise fares sufficiently to offset the cumulative $17.98 billion jump in fuel costs.
Chicago-based United Airlines, American’s largest competitor at O’Hare International Airport, said it is “seriously studying” a new baggage fee. Funny how this new charge is being tacked on in the middle of the summer travel season, as the LA Times has stated, providing more grist for disgruntled passengers who already are contending with fewer amenities at airports and on planes. American said it is rolling out other fee increases ranging from $5 to $50 for a host of services, including checking pets and oversize bags. Altogether the higher fees will generate several hundred million dollars in revenue.
One analyst has said that it will be a ‘very perilous time’ if airlines can’t find new ways to make money, most airlines—even large, well-run carriers like American—could be at risk of bankruptcy over the next two years. So, the best place to make up for that money is to stick it the consumer. This is ridiculous! So as it stands, if we continue down this path, only the wealthy will be able to fly around because the middle class is being squeezed in every possible direction–at the gas pump, in the supermarkets, at the department stores, in the financial arena, filing for bankruptcy to stay afloat, losing jobs and I could go on and on. The sad reality is that the oil majors such as Exxon Mobil Corp., Chevron Corp., ConocoPhillips, Royal Dutch Shell Plc, Sunoco Corp., BP Plc and even companies that provide services to them such as Schlumberger Ltd. and Baker Hughes are raking in the dough and pulling in big salaries. So, we are faced with a really serious problem and American Airlines’ decision is a very troubling one. Just stick it to the consumer no matter what. People need to rethink their summer plans and find another airline to fly with other than American Airlines, who obviously couldn’t care less about their domestic passengers. We really need to rethink how we purchase oil and what we have here in the United States to drill. We are too dependent on the Saudis and other countries for oil, which is wreaking real havoc on just about everything we touch. Just my thoughts, you be the judge….
Filed under: American Airlines, BP Plc, ConocoPhillips, Extra Bag, Exxon Mobil, Gas Prices, New Fees
Black Political Thought 