Also in this playlist...
This transcript is automatically generated
More now on united Continental's new idea is a great idea it's an annual subscription -- baggage fees or more like Graham.
Here's what it costs a yearly subscription to check one bag -- -- is it.
Dollars per year comes across just one back 399 you get to check bags for a year.
It comes with united United's most spacious coached and seats -- former American Airlines chairman Bob Crandall joins us.
Bob great to talk to you on the and now from United Continental is already second in the net in the nation in terms of checked bag fees.
Last year why would they do this if it didn't mean more revenue for them.
Or take -- -- it sounds like a -- bladed it.
A breakage play explain that well you know -- do you -- Dubai did your subscription that you download trial -- enough to.
Use all of that subscription assuming normal rates that you get something called breakage.
Keep -- Bob do you think that with all of the fees and that the amount of speed just and checked bag fees titles like three and a half million dollars last year.
For the US air carriers.
Do you think there will be an overall breaking point for flyers that this makes -- in some way.
Choose which airline to fly that it makes them just change their behavior and some why because the fees have become so.
Plentiful if you well.
Well but I think I think if you look very gifted the industry you find there really isn't much differentiation.
They did this -- is -- pretty much practical or other -- terms.
These structures etc.
How healthy is the airline business right now so I felt if there's been wrong about how do.
Do you -- that -- aren't as.
Defense that's had left because I'm -- employ it.
I -- as do you go about how much more can they cut in terms of seats in the hair.
In recent years the smaller kind of midsize airports have been very hard hit.
A lot of air of lot of smaller airports don't even have commercial air service anymore -- Bluefield West Virginia or even Saint Augustine, Florida how much more can make caught.
Mean planes are fall but.
Hey again now they've got to come up with other -- come up with -- -- -- the increase in ticket prices.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Groups that don't care they're not finish your award.
Bob and terms of the -- it never get to get back to this subscription -- from the united.
Do you is it in part a response to the idea that flyers are tired of being nickel -- -- That they would rat that they would rather it did it's that's kind of changing their perception of some of these airlines if he does -- -- kind of a flat day.
Even if it might make more money for the airline that it kind of wipes that out of the flyers mind at least for a year that they're getting well.
-- -- -- -- Well I I don't I don't know that there's much to bat but I think Derrick bay bay people who fly a great deal that -- very frequent.
And who would like to avoid that incremental transaction.
Associate associated group each scripts -- the consequences I think it's.
It's not only break -- -- but it is also.
In a way former frequent -- attraction.
You know I'm I'm all set with baggage -- and I -- so.
Even if Americans are delta might have -- people convenient but let's stay united because -- prepaid baggage.
Bob how -- you break the flying experience today.
Like -- app for the.
-- -- I think he had I think defying experience despondent I think the preparatory.
Scary that they do is completely as satisfactory.
I'll I'll love the pat down and -- the -- I.
Dave reinforcing your masochistic that you know I just like -- -- -- -- Jesus out of just didn't see as AA says weather -- I've this you know from my arms up there of -- like man we just need to look on your watch we don't really need you to do that.
Anyway Bob thank you does get tough team but regular front and American Airlines.
Filter by section