Capitolism

Independent in All Things, Neutral in Nothing

Overhead Baggage and Political Intervention

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Spirit Air’s decision to charge passengers for using overhead baggage space has created quite a furor. Now, the politicians are getting involved. Two senators want to pass a law barring these fees.

Good grief. While I might not condone Spirit Air’s action, why should politicians be able to interfere with their business? If Spirit is making a big mistake – which I think it is – the market will force them to reconsider. Passengers will choose other airlines, or they will check baggage, which is already subject to fees. Or they maybe they won’t even fly. But Spirit owns the asset, the plane with overhead space. Spirit should be allowed to try to make money in whatever way it deems possible. (Of course, this does not mean Spirit can or should let safety slip to save money). If Spirit thinks it can increase revenue by charging fees for overhead baggage, they should do it.

What’s next for politicians? Barring movie theaters from selling popcorn?



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Written by Russell S.

April 14, 2010 at 2:40 pm

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