"Passengers to pick up costs of security"

Saturday, August 12, 2006

Passengers to pick up costs of security
By Rick Stouffer
The Pittsburgh (PA) Tribune-Review


Heightened airport security related to this week's foiled terrorist plot
could mean increased passenger costs, with airlines possibly charging for
every bag, including traditionally free carry-ons, some industry experts
say.
 
"Carriers have talked about charging for the first bag for a long time, but
haven't acted on it because they couldn't figure out how to get away with
it," said airline industry consultant Robert Mann, president of R.W. Mann &
Company Inc., based in Port Washington, N.Y. 

Others said that while air travel's overall misery will increase with longer
in-line waits and more scrutiny, the flying public will get used to the
added inconvenience and airline traffic will suffer little. 

"There may be a slight drop-off in short-haul flights, people may take their
own cars or rent private aircraft, but I think this is much ado about
nothing," said Doug Abbey, president of airline industry consultant The
Velocity Group, based in Washington, D.C. 

The extra baggage charges could be imposed if airlines continue to recommend
that all bags be checked and as they look for ways to pay for increased
security. The charges also could be used to offset higher capital and labor
expenses to handle the greater number of bags placed in the airplanes'
holds, and for displacing cargo that every airline carries, Mann said. 

"If business travelers were not taking their carry-on baggage on flights,
that would be an unmitigated disaster," said Barbara Bayer, president of
consulting firm Avmark, in Vienna, Va. "That might be a real problem." 

Many business travelers carry important information on their laptop
computers and other electronic devices. If forced to check the equipment,
they risk it being damaged or even stolen, Mann said. 

Relocating luggage from overhead bins to airplane cargo holds would cost
airlines significant amounts of money, according to Mann. 

"It will mean extra baggage volume, which will mean more labor expense
because you need more people to load and unload the bags," he said. "The
extra baggage also will displace cargo capacity in planes, used to carry
mail and other cargo and, in the case of international flights, palletized
cargo, which is very lucrative." 

The terror threat and concerns about higher fuel prices hurt shares of
airline stocks yesterday. Shares of six of the seven largest airline
companies lost ground, including those of US Airways, which dropped $3.33 to
$37.19, a slide of more than 8 percent.

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