Travel News

WSJ’s Scott McCartney On Travel in 2011

Moving Baggage - Luggage Fees Here To Stay?Are we poised to see the end of checked-bag fees? What will the new airline mergers mean for travelers?

As we look toward 2011, the travel experts are weighing in with their predictions.

Peter sat down with Wall Street Journal columnist Scott McCartney to talk about his expectations for the new year, including the good, the bad, and the downright puzzling.

Peter Greenberg: Let’s start with bag fees. Do you think that’s a reaction to how much Southwest is making by NOT charging for checked bags?

Scott McCartney: I think there’s pressure there. I also think there are some interesting things happening with credit-card companies negotiating deals with airlines so they can offer customers of premium cards waiver of bag fees. There are some interesting ways to get around bag fees and I think that while airlines are making lots of money with those fees, this is going to be one of those things that does get whittled away.

PG: That’s a positive one. How about airline mergers? How is that a present for us?

SM: Oh, that’s not necessarily a present for travelers. However, I do think there’s a chance that the AirTran/Southwest merger, when it does go through, will be helpful for travelers. There will be a bigger network on Southwest, which is already the largest domestic carrier. Southwest Airlines LogoIt also moved Southwest to international routes, and gives them a second fleet type. It really expands the scope of service that Southwest provides and I think that could be really significant. A bigger, better, more powerful Southwest could offer more discount services to a lot more communities.

PG: The Southwest model seems to work historically where they come into a market and the next thing you know, fares drop about 40 percent.

SM: This is going to be different since AirTran has already brought down prices in a lot of markets. If you put a smaller, 100-seat airplane into a smaller community and tie it into Southwest’s existing network, that offers something better than what they’re getting from AirTran right now.

PG: Is there any more good news to share?

SM: Well, the lump of coal this year may be oil prices. We’re concerned that oil prices may go up next year, which could really derail a lot of the recovery we’ve seen, push fares up, and delay any relief on baggage fees.

PG: I want to go back to mergers because right now the news is that Delta wants to get together with Virgin Atlantic. Also, there’s the rampant rumors of an alliance between JetBlue and American. That strikes me as the most interesting.

Learn more about the potential Delta/Virgin Atlantic tie-up here: Delta, Virgin Atlantic Ponder Merger As Airline Industry Consolidates.

JetBlue Tail Logo - JetBlue & American CooperateSM: That one is a bit puzzling. They traded some slots at Kennedy and American put in flights on JetBlue routes. It’s a little puzzling about exactly how they’re going to cooperate. They are expanding their cooperation on frequent-flier programs. It could be a good thing for travelers in New York, to get the ability to merge frequent-flier accounts and earn miles on either airline. It may give American more sway with corporate customers so your employers may switch allegiance if JetBlue offers more local service within the corporate deal that you have. But all in all, it’s hard to say. JetBlue has really taken a Swiss-like attitude of, “We’re going to be partners with as many people as we possibly can.” Alaska is doing the same thing by forming lots of codeshare deals with international carriers. It’s hard to tell how serious American and JetBlue will be.

PG: The way I look at it, in three years we’ll go to the airport blindfolded because we’ll have no idea what airplane we’ll be on.

SM: In three years it all may be labeled “Airline.”

PG: Or “Alliance.” You’ll fly oneworld, Star or Sky.

SM: I think that’s right. The Delta/Virgin talk really plays into that. I’m not sure that would be a merger, but more of an alliance. Virgin has some codeshare deals here and there and might decide to add Delta; I think they feel like they have to do because of the American/British Air anti-trust immunity, which makes them a much more distance number-two player on the Atlantic.

PG: It’s tough out there, so what would you like to have happen? What’s the one thing on your wish list?

Learn more about the latest in air travel in our Airlines & Airports section.

First-Class Seat: Paying For The PrivilegeSM: I would like to see an airline, or several airlines, step up and say, “We’re into recovery and we need to do something about our service.” I think this whole attitude of forcing people to pay extra for adequate service–you have to pay extra to get overhead bin space by boarding early, you have to pay for better legroom than the cramped conditions on the rest of the plane.

If someone said, “We’re not going to be the Walmart of the sky; we’re going to be the Macy’s of the sky,” I think there’s an appetite for that among travelers these days.

PG: I get a little insulted, and maybe you do, too. There’s one airline that wants to charge you up to $39 to have a seat closer to first class. You can smell the cookies, but you can’t have one.

SM: It’s really crazy to pay a whole lot extra so that you can get off the plane 90 seconds before someone else on the plane. It’s really kind of insulting. The notion is that if you want adequate service, you have to pay extra for it. Tickets have gotten more expensive this year, so you’re paying several hundred dollars for service—you should get something decent out of it.

By Peter Greenberg from Peter Greenberg Worldwide Radio.

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