Continental Airlines and US Airways yesterday tacked on service fees for tickets purchased through phone reservations centers or at airport ticket counters. Continental's fees already are in place, while US Airways' go into effect tomorrow. Northwest Airlines two weeks ago initiated the trend when it implemented similar fees, a move that was matched one week later by American Airlines.
In all four cases, tickets through the carriers' reservations centers incur a $5 fee, while airport ticket counter purchases incur a $10 fee. All fees are nonrefundable. Travelers can avoid the fees by booking on the Internet or at airport self-service kiosks. In certain cases, elite level frequent flyers also are exempt from the fee.
Neither Continental nor US Airways implemented fees on tickets issued by travel agents through global distribution systems, as Northwest had attempted before relenting under intense industry criticism
(BTN, Sept. 6). As such, corporate travelers using a designated travel agency or corporate online booking system do not face the new fees. Consumer groups, however, had blasted Northwest for levying fees on all distribution channels offering personalized rather than automated service.
"From a competitive standpoint, these new fees are necessary to bring us in line with the distribution costs of low-cost carriers," said Continental executive vice president of marketing Jim Compton.
"Lower airfares and higher distribution costs are squeezing the industry, and US Airways, like other airlines, must find ways to both offer low fares and cover our costs," said Ben Baldanza, US Airways senior vice president of marketing and planning. "These nominal fees will allow us to maintain the more expensive distribution and infrastructure of personalized customer service in a cost-effective manner."