American Airlines: Sit Up Front For A Fee

Airlines that used to offer free baggage service and food now charge for those services along with almost everything else a passenger would want. Soon there will be a toll to go to in-flight toilets.

American Airlines, the operating group of AMR (NYSE: AMR) will start to charge customers who want to sit in the first few seat in coach a fee. These passengers will also be allowed board planes before the balance of the people who sit in steerage. The new service is called “Express Seats” and is available for between $19 and $39 depending on the length of the flight Airlines tend to mimic one another’s business practices so the program is likely to eventually end up as a part of seating arrangements at most other carriers. Clever airlines like Southwest (NYSE: LUV), which still offers free baggage service, will no doubt mock American and any other airline that charges for front seats. The mocking will probably get at some fliers disgruntled by America’s greed.

US carriers lost a lot of money during 2008 and 2009 because of the recession and a period of high fuel costs. They may want to make some of those losses back even though most are profitable now. Passengers cannot stage a strike over the seating program. Too many of them have places to go and things to do. The airline industry continues to give itself a bad name with consumers. It can keep the process up. Customers don’t have alternatives. Riding the bus takes too long, but the front seats don’t carry an extra charge.

Douglas A. McIntyre