Comments on: Etihad Airways charging a second bag fee? Bad idea for a brand trying to establish itself

By: Richard Ziskind

Richard Ziskind — Mon, 08 Feb 2010 17:29:09 +0000

I feel unbundling has gone too far to impact the fundamentals of our airline service experience. We have to draw back and supply the basics when you buy a ticket. The simple equation for the customer buying a ticket. Seat + Luggage = Air Travel, this should be one price and airlines should set baggage limits and charge for anything over those limits. That is acceptable, but charging for all baggage is not acceptable in my mind. When have you ever travelled without checked luggage on a medium to long flight.

By: Tauseef Ahmed Siddiqui

Tauseef Ahmed Siddiqui — Mon, 08 Feb 2010 17:16:00 +0000

I think it’s a smart move to some extent as the aviation industry has to nurse back itself to health and has to make its business equation a gainful one… These types of ancillary revenue lines can help them to do it sooner. Again, pricing would play an important role.

Br, Tauseef Ahmed Siddiqui | Arzoo.com

By: Salama Evans

Salama Evans — Mon, 08 Feb 2010 17:09:21 +0000

The US and Canada are the only countries who allow two bags which can weigh over the normal 20kg or Business 30 kg limit, so doubt other countries will notice who are used to these luggage restrictions, What is important is if you can get an extra 20kg by paying for the extra bag at a minimal charge. Meaning with Economy ticket you can have 40kg without paying a high per kilo surcharge! That would sell it for me.

By: Kenneth J. Goldstein

Kenneth J. Goldstein — Mon, 08 Feb 2010 17:06:03 +0000

If you are a class carrier (which they believe themselves to be), you don't indulge in a classless act of charging for bags, nickel and diming the customer are NOT a good things as evidenced by the continued slide in overall financial performance and revenue by the legacy carriers in the US.

By: Aamer Quraishi

Aamer Quraishi — Mon, 08 Feb 2010 17:04:56 +0000

Will Etihad come up with a concept selling of Branded fares like some Malaysian carriers? What happens to their various configs of Pearl, Coral and Diamond, charging for 2nd piece of baggage sounds kind of vague for a carrier like Etihad who has established its aircraft cabin after a jewellery line. It should start renaming its cabin as 1bag, 2 bags and 3 bags instead of Pearl, Coral & Diamond. I think Etihad is getting lost in terms of what business model they intend to follow, is it the Emirates Class or the Air Arabia Class, may be the recent Fly Dubai has heated them up a bit.

By: Vimal Rai

Vimal Rai — Mon, 08 Feb 2010 17:02:25 +0000

Regardless of the business sense of doing this – are Etihaad's customers primarily choosing them becos of schedules, safety and price etc ? If schedules, then it might be not be such a shot in the foot. If price etc. then it's 'screwing' the customer but doing it quietly (it's likely most pax will not realise they have to pay for the 2nd bag until they reach the airport to check in, which will make checkin a pain and leave an unpleasant taste in the mouth). As rightly pointed out, Arabs and Indians NEED baggage allowances – so maybe it's a stroke of genius to start charging the very people who you KNOW NEED the service you are charging for! From a branding perspective, a-la-carte and full-service do not fall into the same branding bucket.

Unless… we're all missing something here which these guys have discovered – that you can be a premium carrier up front, but a no frills carrier back-end in EY. Can a brand be built around this novel concept ?

By: Nikhil Datar

Nikhil Datar — Mon, 08 Feb 2010 17:00:51 +0000

Shashank, incidently I ran into a dated article that says Air Canada had launched an “a-la-carte” pricing model with base price and then customers could upgrade based on what they wanted” . This is a good example of what I refer to as Transparency. It makes you very credible.

By: Raza A. A

Raza A. A — Mon, 08 Feb 2010 16:59:54 +0000

In my opinion most of the middle eastern carriers exist and survive because of the labor traffic as well as huge expatriate movement. No matter some carriers put themselves in 'premier' caregory or whatever. Their real revenue source is expatriate 'working class' who seek opportunities to save money. So I do not believe it would be a good idea for any middle eastern carrier to try and follow US airlines' practices.

I loved what Nikhil said. Basically, such policies should be implemented keeping mind the mutual interest of the company and the targeted customer segment. Otherwise for a traveler it is just another way to squeeze money..nothing else.

By: Artem Velichko

Artem Velichko — Mon, 08 Feb 2010 16:58:21 +0000

Just like having to pay for your pair of white hotel slippers in a 5* hotel. Just does not sound right for Etihad. On the other hand Turkish have just increased their allowance to 30 kg on longhaul, just like for their international/domestic transfers. It was a very welcome differentiator for me as a passenger on the way back from HKG.

By: Nikhil Datar

Nikhil Datar — Mon, 08 Feb 2010 16:57:18 +0000

Personally, I have had a horrible experience as a customer with Etihad.

About what you are asking Shashank, I believe its about what customers this airline is after. Its important to make sure that customers are loyal to the airline and not to the schemes of this kind, especially if that makes you a loss per departure. Customers like transparency – in this case, will they give lesser price for someone that does not have two bags? or someone that does not drink anything versus someone that finishes all the orange juice in the plane? As a customer I still wonder why an airline charges more money if i buy my ticket closer to the date of departure. Is there a logic that a customer can see? My suggestion is – As long as a business is transparent with its customers, there could be a WIN-WIN. And if you are saying that this is an age old habit of customers and a MUST HAVE to compete – then I think this airline needs to revist its business OUTSIDE-IN rather than INSIDE-OUT