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Airlines Calling New Fees 'A La Carte Pricing'

Trying to put a positive spin on the fees and surcharges they're adding to the cost of a ticket, airlines are introducing a new term to the flying experience: "à la carte pricing." The phrase came up several times Wednesday during a Merrill Lynch transportation conference in New York, where executives said the tough new cost environment means nothing can be free, or cheap, anymore.

J. Scott Kirby, president of US Airways, says that historically all passengers paid for checking bags even when they did not bring luggage, because a charge for transporting them was built into the ticket price. Now, he says, "those who want the infrastructure to check bags, will check bags; those that don't, won't pay for them."

United Airlines, for its part, expects to collect $275 million this year by charging for checking bags and sees even greater possibilities from the à la carte approach. Frederic F. Brace, the airline's CFO, predicts his carrier is on track to collect $1 billion in additional revenue through the new fees and efforts like Economy Plus, an upgraded coach class that offers more legroom.

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