Spirit breaks ice with carry-on bag fees

The low-fare carrier is first to charge for luggage that won't fit under seat.

The Associated Press
April 7, 2010 at 11:13AM

Baggage fees have sneaked out of the belly of the plane and into the overhead bin.

Spirit Airlines will charge as much as $45 each way for a carry-on bag starting Aug. 1. Personal items like purses and laptop computers that fit under the seat will still be free.

The new fee makes Spirit the first airline to charge passengers to haul their own possessions onto its planes. It's sure to seize the attention of passengers as well as airline executives who are probably glad that Spirit tried it first.

"I didn't think anyone would go this far," said Jay Sorensen, an airline consultant who specializes in airline fees.

Industry observers said Spirit's move doesn't mean it will spread to the big airlines. None of the major carriers changed its fees on Tuesday.

Spirit's new charge for a carry-on is $45 if paid at the gate, and $30 if paid in advance. Spirit said on Tuesday that it reduced its lowest fares by $40 on average, so most customers won't really pay more to fly. Customers who pay for space in the overhead bin will also get to board the plane earlier. The new policy limits paid carry-on bags to one per passenger.

Spirit CEO Ben Baldanza said having fewer carry-on bags will help empty the plane faster. He said the idea is to get customers to pay for individual things they want, while keeping the base fare low. "The beauty of it is they will do what they think is best for them and will now have the choice," he said.

Spirit is based in Miramar, Fla., and is privately held. Most of its flights carry leisure travelers from big airports in the U.S. through Fort Lauderdale and on to Latin America.

Like Ryanair in Europe, Spirit has relatively low base fares but charges lots of add-on fees, including $16 per round-trip ticket to book at its Website. The only way to avoid the fee is to buy a ticket at the airport ticket counter.

It has fewer than two dozen planes. Its 150 daily flights are about one-twentieth as many as American Airlines and its regional partners offer.

Even though Spirit is a minor player, big airlines will watch it to see whether customers are willing to pay for carry-ons, Sorensen said. "It's a potential source of revenue for an industry that still needs it."

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JOSHUA FREED

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