Sunday, April 18, 2010

Let the Market Decide

Spirit Airline has recently stated that it intends to charge for carry-on luggage, namely items that would be placed in overhead bins. Those items that could be stuffed under a seat (such as a purse or briefcase) would incur no charge. The thinking is that it will expedite loading and unloading of the plane, since fewer people will use the overhead bins. Is this a good idea? I don't know. However, if the policy was put in practice for a few months, Spirit could soon discover whether passengers are driven from the airline on account of the fee or drawn to it for the quick boarding and unboarding process. Ticket receipts will tell the tale.

However, the government just can't allow this. Senator Charles Schumer (D-NY) was incensed that the airline would dare to charge such a fee and that perhaps some legislation was needed to prevent airlines from trying to run their business in a way upsetting to Senator Schumer. At what point does a company cease to be private and merely become a pawn of government regulation? Let the company do as it will. It isn't as if Spirit is the only airline. Another airline could have a great ad campaign: "We don't charge fees for carry on luggage like some airlines." The problem will resolve itself without government intervention. But if government threatens regulation, Spirit might abandon its experiment and we'll never know if that might have been popular with many passengers.

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