Asia's top airlines should keep from charging for ancillary services
It would be detrimental to the good names of Asia's top airlines to follow an industry trend of charging for services such as extra legroom
How long can Asia's leading airlines, including Cathay Pacific Airways and Singapore Airlines, resist the lucrative lure of "unbundling" their services and charging separately for each item?
For Cathay, which lost HK$935 million in the first half of this year, seeing other airlines cashing in and charging passengers for paying by credit card, checking in baggage, carrying hand baggage on board, choosing a seat with extra legroom, and enjoying food, drink and entertainment, it must be tempting to follow.
But it would be a big mistake to throw away the loyalty of regular passengers and its premium reputation to go after the nickels and dimes of charging for everything.
Airline bean counters might disagree. The so-called airline ancillary-fee business is now a big bucks industry that rose 66 per cent in the last two years and was worth US$22.6 billion last year, with United Airlines leading the way and collecting a whopping US$5.17 billion in extra charges.
So when will Asia join in the game? A strange note confronts anyone making a booking on Cathay over the internet. Even if you book flights only on Cathay, you will be warned: "Additional airline fees for baggage may apply. The baggage policies of the following carrier apply to this itinerary and are available on the following webpage. Cathay Pacific."
Asked whether this was a warning that fees for baggage might be on the way, Cathay replied: "As a premium international carrier, we offer a free baggage allowance for our customers. There is an extra charge for baggage in excess of the allowance.
"The line you referred to on our website is for passengers who might travel on multiple airlines. With the introduction of an IATA Resolution since April 1, 2011, airlines may apply different baggage allowances and charges for excess. This alert is aimed to provide customers with full details of all applicable baggage charges and so they can calculate the total cost of transportation and make an informed purchase. In certain jurisdictions such as the US, this type of notice is a regulatory requirement."