[Grovenet] It will be interesting .. . . . .

[Katie Allnutt]

One big flaw will be travelers like me.
Say my kid has just landed a job in a new city with a convenient  
flight from PDX, so I decide I want to fly United and take two bags.   
I'm willing to join their frequent flyer plan but as a new customer  
to said city I have not met the mileage requirement with my first  
trip. Will they charge me for that 2nd bag as a new customer?
If so, that certainly gives me a disincentive to try them even though  
I may eventually meet the frequency and mileage at some point in the  
near future.
And it would be more economical for me to just buy a larger bag to  
check. I can reuse the luggage over and over to save $25 each trip.
A disincentive to new customers is not a way to gain market share in  
my opinion so I'm not surprised the stock took a dip.

Katie

On Feb 4, 2008, at 2:05 PM, Bob Browning wrote:

> It will be interesting to see how long this program lasts,  
> especially if other companies see that emulating it  will work as a  
> competitive disadvantage . . .
>
>> AP
>> United Adds $25 Fee for 2nd Bag
>> Monday February 4, 4:39 pm ET
>
>> United to Charge Non-Frequent Fliers $25 to Check 2nd Suitcase  
>> CHICAGO (AP) -- United Airlines will begin charging passengers $25  
>> to check in a second piece of luggage for domestic travel if they  
>> are not part of its most-frequent-flier programs, the airline said  
>> Monday.
>> The charge will generate more than $100 million in revenue and  
>> cost savings each year, UAL Corp. said. The change takes effect  
>> May 5 and applies to tickets purchased on or after Monday.
>>
>> Travelers would have to log at least 25,000 miles in a year on  
>> United to ensure they can check their second bag for free.
>>
>> Airlines want to charge more for not only checked baggage but  
>> assigned seats and other services. Investors have urged airlines  
>> to pass on the higher costs of fuel to passengers through ticket- 
>> price increases or similar surcharges.
>>
>> United's customer research showed a quarter of its customers check  
>> a second bag, Chief Revenue Officer John Tague said in a  
>> statement. The new policy will allow customers with many bags to  
>> continue bringing them for a fee and "enables us to offer  
>> competitive fares to everyone," Tague said.
>>
>> Customers who have "Premier" status or higher within United's  
>> Mileage Plus program, or "Silver" status or higher within its Star  
>> Alliance program still will be able to check in a second bag for  
>> free. The new charge applies to those who purchase nonrefundable  
>> domestic economy tickets.
>>
>> United will charge all customers $100 per bag for up to four  
>> additional bags. Previous charges ranged from $85 to $125 per bag.  
>> The cost to check items that require special handling because they  
>> are large, overweight or fragile will now be either $100 or $200,  
>> depending on the item.
>>
>> New fees apply to trips within the U.S. and or those that include  
>> Canada, San Juan, Puerto Rico and St. Thomas. Customers whose  
>> itineraries include other international flights still will be able  
>> to check the second bag for free. The cost to check more than two  
>> bags, or items that are overweight or require special handling, on  
>> such trips will vary by destination.
>>
>> UAL shares fell $2.56, or 6.2 percent, to $38.58 Monday.
>>
>
> bob "here we go again with war created inflation" browning
>
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