In a daring move, US Airways has raised — or perhaps lowered — the bar for other domestic air carriers by implementing what it calls a business transformation plan to offset rising fuel prices.
How will this controversial plan transform your next flight? In addition to a $15 fee for the first checked bag effective for flights booked on or after July 9, here is the list of other notable fees and changes. Most are effective on or after August 6:
1. “Free” award tickets will no longer be free. A $25, $35, or $50 processing fee will be charged for award tickets. I assume this is in addition to the mandatory September 11 Security Fee.
2. It will be even more difficult to earn the miles needed for an award ticket, as Preferred bonus miles will be discontinued.
3. US Airways will discontinue operating European arrival lounges in Munich, Rome and Zurich.
4. US Airways Clubs at Baltimore (BWI) and Raleigh-Durham (RDU) airports will close.
5. Fees for telephone and airport ticketing will be $25 for domestic tickets and $35 for international tickets. If you must book an award ticket by telephone, this means that your ticket fees will be upward of $50.
6. Drinks in coach will be $2 for non-alcoholic beverages (including water, coffee, sodas, and juices) and $7 for alcoholic beverages. Here’s how it could affect passengers.
While reading about the new beverage charges, I just had to wonder if I would be charged for water if I am stuck on the tarmac for hours. Would this not violate their policy of providing basic customer needs during a long wait on an aircraft? But I digress.
In addition, in the award travel section of the Web site, there are some other goodies tucked away. Award travel reissues and redeposit fees will increase from $100 to $150 for transatlantic tickets and $250 for transpacific tickets.
And these changes are on top of an 8 percent reduction in capacity, returning and/or reducing the number of aircraft in its fleet, increasing the fee for employee/family travel passes, and releasing 1700 employees.
Up until this announcement, other airlines have taken baby steps with their fees and policy changes, walking a fine line between increasing the bottom line and maintaining their customer base.
With US Airways’ new pay-for-what-you-use business model, the carrier has hit all sectors of their business at once, as the changes affect leisure travelers, frequent travelers, and employees.
Just who is the target market for US Airways?
Is US Airways still a low cost, full-service airline? Apparently not. Let’s just hope that the other airlines do not follow suit.
