The deal with SouthWest is that they are not always cheaper, contrary to popular belief. They know this and that is why they do not advertise their fares on web-sites like Travelocity, Orbitz, etc. That is part of their marketing scheme. They sale very few of the $39 or $69 or whatever fare it is you see in their commercials. They do not charge for luggage, but on more than one occassion when I have priced SouthWest it was actually cheaper to fly one of the other major carriers and pay luggage fees. It isn't always the case but is on more occassions that people would think.
With that being said, I think the airlines do need to start charging more for fares and stop with the extra fees. It gets ridiculous. I do expect other major carriers to adopt the carry on fees especially if Spirit is successful. I know for a fact Continental is already looking at the possibility of charging for carry on luggage.
It seem very simple to charge extra for airfare and stop with the luggage fees. Don't think that the airlines have not already considered that. The problem is that competition is too fierce. If one major carrier decided to stop charging fees and instead raise their airfare by an average of $50 they will have to hope that the other carriers follow. If they other carriers do not follow then they will begin losing customers. The airlines have learned that passengers are very sensitive to airfare changes and will literally choose another airline that is just a few dollars cheaper. A few years ago, before all of the luggage fees, all of the major carriers tried charging an extra $50 to $10 on airfare. One airline, I believe it was Continental, did not follow. This resulted in the others immediately stopping the fare hike. It is a very sensitive market which is why the airlines have resorted to adding extra fees elsewhere instead of raising fares. The only answer is re-regulation or a folding of a couple of major airlines resulting in less competition. OR enough people just stop flying because of all of this and the airlines get the message and put a halt to the fees.
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