My blog has moved! Redirecting...

You should be automatically redirected. If not, visit http://rosskaplan.com and update your bookmarks.

Wednesday, August 4, 2010

Airline Baggage Fees & the Law of Unintended Consequences

A Price Increase by Any Other Name

If you want a great example of the law of unintended consequences in action, consider the chain reaction set in motion by the airlines' decision to charge "per bag" check-in fees (a backdoor price increase if there ever was one).

To avoid the (rising) fees, families such as mine now meticulously pack everything as carry on items.

Multiply that response by millions, and suddenly there are a lot fewer bags to check; which means emptier cargo holds; which means less demand for baggage handlers.

Ergo, lots of baggage handlers get laid off -- into a wretched economy for blue collar workers.

And no, don't hold your breath waiting for the airlines to pass along their savings.

No comments: