Columnists, cranks, and “thought leaders” have long believed they know how to run airlines better than the professionals who get you home safely and reliably. In the past few weeks, we’ve seen a notable amount of silliness written about the TSA’s inability to manage their part of the process. And rather than place responsibility squarely where it belongs, the blamers have taken aim at airlines.
The New York Times’ Gail Collins is just the latest, opining that someone should “Make the airlines stop charging fees for checked baggage.” Ms. Collins’ column is so full of myths and errors that the best response is point by point:
1. She says carry-ons clog the security lines. Fact: Travelers have been carrying on their belongings ever since the 1970s, when airlines began replacing hat racks (folks were no longer wearing fedoras and cloches) with overhead bins and doors — long before airlines started charging for checked bags. Whether there’s a charge or no charge, people prefer to keep their stuff with them, as long as it’s not their steamer trunk nor pet elephant.
2. She says bag fees began in 2008 “when the cost of fuel went through the roof.” But that’s only part of the reason. Older airlines were looking for ways to survive, having lost billions since 2001 and were under siege from new carriers that were never hobbled by five or six decades of intrusive and misguided Federal economic regulation.
3. She says airlines are now earning “stupendous profits.” Well, no, they’re actually earning the returns that investors expect of public companies. And she’s forgotten about the billions in losses a decade ago. American Airlines, for example, lost more than $12 billion in the first decade of the 2000s. More fundamentally, why is it okay for Apple or Google to earn profit margins north of 25%, far greater than airlines, but not okay for American, Delta, or jetBlue? There’s an unfair double standard here and in many other aspects of the airline business.
4. She calls fees for checked bags “a scam.” But customers don’t see it that way. For more than a decade, passengers have told airlines — in both surveys and actual buying behavior — that given the choice between cheaper fares plus fees or the old pricing method where everything was included (checked bag, sandwich, etc.) they prefer cheaper prices. (I know this well, because from 2001 to 2006 I led American Airlines’ advertising team, and the customer research group was an important part of the group.) If you want more recent evidence, in April the industry group Airlines for America released a survey that found that 67% of respondents said they prefer the a la carte pricing approach. It’s like eating in a restaurant: if you don’t want dessert, you don’t pay for dessert.
5. As part of her “scam” argument, she suggests that fees — not just for checked bags, but for other services — are not disclosed. Nope. Airlines put this information on their websites, clearly, and in other media; carriers shouldn’t be blamed if people don’t take to time to read. Indeed, the U.S. Department of Transportation compels disclosure far more thorough than when consumers shop for other goods and services (another example of the double standard).
6. She says, “The airlines have maximized profits by making travel as miserable as possible.” Really? Safe, reliable, fast transport is “miserable”? And in real terms (adjusted for inflation), the average ticket costs almost 40% less than in 1979, including fees. I don’t think The New York Times, Ms. Collins’ employer, can make that claim for subscribers or advertisers!
7. She says one of the things that makes flying “miserable” is by “squishing people into smaller and smaller spaces.” Nope. Seat width has not changed in decades, and seat pitch has been reduced only modestly. Travelers’ waistlines? Not so much. Moreover, airline market research consistently tells us that given the choice between lower ticket prices and legroom, customers opt for lower prices. And almost all airlines now offer the “dessert option”: you can buy more legroom for 20 or 30 bucks. Just like booking a room at the Marriott: a bigger room costs more. Or like carmakers: you want more rear-seat legroom, you pay more for a bigger car. How can this be so hard to understand?
Ms. Collins did get one thing right: she titled her piece a “ranting.” But when it comes to an industry that adds so much value to our economy and to our personal lives, we don’t need rants. We need people to understand how the airline business really works, and to discuss realistic ways to help it run better. Helping Ms. Collins, you readers, and others understand airlines is my job as a teacher. You can look forward to more lessons in this space and elsewhere in the months ahead.
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