Part a: Traveling Light

Have you flown on an airplane since the $15 baggage fees have been implemented? Did the $15 fee make you so mad that you swore that the next time you flew; you would pack fewer clothes so you could use a carry-on bag instead? That is exactly how the airlines hoped that you would react. Baggage handling is extremely labor-intensive. All that tagging, sorting, loading on carts, loading in planes, unloading, and sorting again add up to about $9 per bag. They also have equipment costs: sorters, carts, conveyors, tractors, and storage facilities. Thats about another $4 per bag. Finally, there is additional fuel cost of a 40-pound item; about $2 in fuel for a 3-hour flight. These costs add up to $15 ($9 + $4 + $2). Coincidence? Probably not. Since airlines have implemented their baggage fees, fewer customers are checking bags. Not only does this save the airlines money, it also increases the amount of space available for hauling cargo. An airline can charge at least $80 for hauling a small parcel for same-day delivery service.

Source: Scott McCartney, What It Costs an Airline to Fly Your Luggage, Wall Street Journal Online, November 25, 2008.

Requirement

Why do airlines charge even higher rates for heavier bags, bags that are odd shapes (e.g., ski bags), and bags with hazardous materials in them?