Spirit earns USD50 million in successful bag policy

In Aug-2010, Spirit raised industry interest and Congressional hackles by announcing it was imposing a carry-on bag fee as part of an effort to speed boarding and deplaning. It remains the only airline to have such a fee and it is setting a new standard for fees in the US airline industry.

The airline, which generates about 30% of revenues from ancillaries, not only made the fee stick but earned USD50 million from the effort. In a hearing last spring, Louisiana Senator Mary Landrieu was so furious that she would not let CEO Ben Baldanza get a word in edgewise to counter her charges that his airline was a consumer rip off. Given the 25% increase in passengers after the fee was imposed, apparently passengers do not agree.