Finally, Someone Calls The Airlines On Their Fee Hypocrisy

Last year, one of my favorite bloggers, Brett Snyder, AKA The Crank Flier, wrote up some observations made by airline CEOs speaking at symposium. In one installment, he quoted Doug Parker of US Airways as saying “Please no new taxes or fees.”  I couldn’t believe that he of all people would make that request.  At that time, I was the first to comment:

This was sarcastic right? Did everyone in the room start laughing when the CEO of US Airways started complaining about fees? Isn’t this the same guy who thought charging passengers for water was a good idea?

I don’t like airport taxes and fees any more than he does, but this industry in particular has zero credibility with the public when it comes to complaining about fees imposed on them when they are tripping over themselves to impose fees on us.

Airline Hypocrisy Knows No Bounds

Never underestimate an industry’s ability to criticize any taxes or fees placed on themselves. For example, airports are seeking to increase their passenger facility fees from $4.50 per passenger to $7, a whopping 56% increase.  Of course, the airline industry is opposing this increase. Naturally, the airports are fighting back in the wake of this week’s reports that the airlines are collecting record baggage and change fees. The airports argue that these fees go to critical safety, security, and capacity improvements.

Over at Aviation Week, Andrew Compart covers the airports calling out the airlines on their rank hypocrisy:

In the press release, Barclay argued that “the carriers’ continued opposition to an increase in the local passenger facility fee is both shortsighted and inconsistent given the airlines’ increasing reliance on ancillary fees to support their own operations. With ancillary fee collections growing rapidly and producing billions in airline revenue, it’s difficult to understand why the industry opposes the collection of a mere fraction of that amount by local authorities to fund critical airport safety, security, and capacity improvements.”

The airline responded by claiming that their fees are optional while the airport fees are mandatory:

“What’s more, it is not a direct comparison to ancillary fees; the fees collected as reported by the BTS reflect airline charges for optional services—changing a ticket or checking a bag,” it continued. “Last we checked flying into an airport was not an optional purchase.”

Yeah right. There are tons of mandatory airline fees out there. Ultra low cost carriers like Spirit and Allegiant are full of such fees that are unavoidable. Many airlines charge fuel surchage fees that are about as mandatory as an airport. US Airways charges award booking fees and so forth.

At Least Passenger Fees Go Somewhere

In fact, I would argue that passengers see more value in airport fees than they do in airline fees. An airline might charge a passenger $150 to change a ticket, something that the passenger may do online at virtually no cost to the airline. At the same time, airport fees go to real brick and mortar projects that cost the airport actual money. Have you been to an airport lately? Virtually every airport is constantly be upgraded, expanded, and refurbished at all times. Atlanta is getting a new international terminal, Denver is getting a train station, Chicago is re-aligning all of their runways and so on. Passengers get a big bang for their buck from these fees as opposed to the $125 to carry your pet on board.

Airports Aren’t Blameless

My argument against the airlines does not absolve the airports for their request to raise their own passenger fees 56%. One could argue that all of the airport improvements are occurring with the current fees, so why raise them? The most important new projects, new runways, are more at the mercy of environmental regulations and local opposition, not a lack of funds. I would be happy with the fees staying where they are and airports continuing to charge the airlines a per passenger fee. This allows the airlines to compete with each other for the lowest fees to attract the most service. Finally, airports charge plenty of fees themselves. Parking rates are rising much faster than inflation, and the United States is one of the few countries where airports charge for the use of luggage carts. High airport rents also result in inflated prices at airport stores and restaurants.

Frankly, I have yet to see a persuasive argument against the status quo. Meanwhile, airlines will continue to quietly increase their fees on passengers while loudly complaining when an airport tries to do the same. I expect no less from this industry.