American Airlines moves to airfare unbundling

American Airlines is set to speed up the trend toward breaking up the cost of air travel into a fare plus numerous other fees.

Beginning in 2009, American, which paved the way for airlines to charge customers for checking a single bag, will initiate an ‘a la carte’ pricing structure similar to that in use at Air Canada. Officials indicate that there will likely be some basic fare plans, with additional services available to passengers, at a price.

Proponents of ‘unbundling,’ as the structure is called, stress that it gives travelers more options, and allows them to purchase the extra items and services they are most interested in, from blankets to drinks.

Some air line passengers are skeptical about the plan, though, and feel that the airline is just trying to add to its income by charging for everything that used to be included in the basic fare.

The pricing approach has been in use by telephone and cable companies for years, offering basic service, and then additional fees for premium channels, for example. Airlines are now seeing this ‘unbundling’ tactic as a means of boosting revenue and also counterbalancing the high cost of fuel.

In the past several months carriers have introduced and increased fuel surcharges, begun to charge for checking luggage, for changing flights and for using frequent flier miles for upgrades and other services.  Even with the recent decline in oil prices, industry observers say that there may be no going back to the all-inclusive fare.

www.aa.com