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Not a Good Deal
Cheap Charlie · June 2, 1999

When I am faced with an identically priced AirTran flight and US Airways flight, I always opt for the US Airways flight. Heck, if something goes wrong during a trip, there are far more options available when it comes to reaching my destination and returning home.

I am a high level frequent flyer on US Airways, so I get treated well at check-in and jump to the top of the list in most cases when I fly standby. There really isn’t much choice in my mind. Even if the US Airways flight cost more, I would probably take it over a smaller carrier. I am willing to pay a reasonable amount more for the additional service and benefits available from the major airlines rather that make all my decisions based strictly on pricing.

When I want to deal with strictly bargains, I’ll stick with the no-frills airlines and charters. When I need service and flexibility, I’m willing to pay a bit more.

How much more remains to be seen.

Last week, I addressed the current antitrust case that has been aimed at American Airlines with others in the coming field of fire. Since that time the major airlines have been laying low when it comes to pricing competition. Hopefully, this DOJ inspired hiatus in predatory pricing will allow the industry to create a more logical price structure. Every American knows that a Cadillac costs more than a Saturn. Everyone seems to agree that they understand why they would have to pay more for a Cadillac. They understand that they don’t get the same comfort when they purchase a Saturn.

Airlines aren’t so different. There is a place for low-cost carriers and full-service carriers in the airline world just as there is plenty of room for compact cars and luxury automobiles in their market.

Everyone connected with the airline industry, who has followed Southwest Airlines, knows that when "frills" are eliminated -- interlining of baggage is not offered, transport of pets is forbidden, meals consist strictly of peanuts, and seating is first-come first-served -- everyone saves money. Plus, Southwest makes money, lots of money.

I, for one, think frills and extra service are worth it. I also know that in this world of low fare competition, when the major airlines cut prices to match start-ups or upstarts, their service lags and their staffs invariably end up disgruntled. I feel every traveler would pay a fair amount more for extra service.

Unfortunately, if the bean counters who seem to be running the airlines keep up their pace of "improvements," we will all end finding better service on a Greyhound bus.

Bargains are based on more than simply price. Unfortunately, many consumers and airline executives haven’t learned that lesson.

Let’s attach some costs to flying on a low-cost airline. We all know, from the consumer point of view, there is a price to pay for many these "savings." In this case I’ve decided to save almost $56 on my airfare from Boston to the DC area by flying out of Providence. I’m planning on being away from Thursday evening to Monday evening. I lose two hours of time traveling to and from Providence rather than heading to Boston Logan.

Time is money even if you base it on minimum wage, which costs me about $14.00. Driving costs money. Based on the government rate, a bit more than 30¢ a mile, 90 miles times 30¢ means the trip cost $27.00. Long term parking at Providence costs $10 per day -- a total of $40. A taxi to the Boston airport would be $12-15 each way. Net cost: $10-14. The snackbars and restaurants at airports served by Southwest have been vastly improved; but honestly, the meals you buy can add to the cost of travel. And when travelers factor in frequent flyer mileage at about 2¢ a mile, they have another cost to consider, though the Southwest frequent flier program is excellent. You get the idea.

Selecting flights based exclusively on the airfare is foolish. Looking at the above figures, the airfare savings can easily be consumed by the additional costs associated with getting to the airport and parking. If the major airline accurately figured in a fair value for convenience, they wouldn’t lose their core customers. They probably wouldn’t have to charge such high last-minute fares for businessmen. If they keep lowering their leisure fares to match the upstarts dollar for dollar, everyone loses.

Charlie Leocha is the Boston-based author of Travel Rights: Know the Rules of the Road and the Air Before You Go. Cheap Charlie appears every Monday on this site. E-mail him at cheapch@aol.com or access his Web site.