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Frontier CEO calls fee-avoiding passengers 'shoplifters' amid Senate scrutiny

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Frontier CEO calls fee-avoiding passengers 'shoplifters' amid Senate scrutiny
Policy
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Airline ancillary fees have recently come under scrutiny in the United States, both within the government and the airline industry. Last week, five executives from major airlines were summoned for a Senate hearing on Capitol Hill to discuss these fees and allegations of 'discriminatory pricing.' Among those present were Steve Johnson of American Airlines, Peter Carter of Delta Air Lines, Andrew Nocella of United Airlines, Robert Schroeter of Frontier Airlines, and Matthew Klein of Spirit Airlines.

This hearing coincided with controversial remarks made by Frontier Airlines CEO Barry Biffle, who labeled passengers attempting to avoid carry-on fees as "shoplifters." The statement came amid revelations from a report by the US Senate Homeland Security Subcommittee on Investigations. The report highlighted that Frontier and Spirit Airlines had incentivized their staff to enforce bag fees aggressively. Over 2022 and 2023, these airlines reportedly spent $26 million pursuing passengers avoiding such fees.

The report quoted a Frontier official saying enforcement was crucial because they did not want customers "stealing" from the airline. It further revealed that Frontier anticipated generating over $40 million in fee revenue in just the first year of its enforcement program. Employees at Frontier could earn up to $10 per bag checked at the gate, while Spirit offered up to $5.

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In defense of this incentive scheme during an interview with Reuters, Biffle stated: “These are shoplifters. These are people that are stealing. It’s not equitable to everyone who follows the rules.” He also expressed optimism about an impending change in administration under President Donald Trump, suggesting it would benefit the aviation sector by focusing on safety rather than price regulation.

Senator Josh Hawley responded to these practices by introducing legislation titled the End Airline Extortion Act aimed at prohibiting such incentives. Hawley criticized airlines for treating passengers poorly.

Frontier's incentive program began before Spirit's initiative and involved various employee roles including customer service agents and managers. According to reports, significant bonuses were awarded when specific targets for carry-on bag fees were met at airports or regions managed by certain employees.

Reports have surfaced about consumer dissatisfaction with these policies, noting instances where gate agents concluded items did not fit within allowed size constraints despite visual evidence to the contrary.

Spirit's incentive strategy launched eight months after Frontier's and resulted in payouts nearing $7 million in 2023 alone. This included rewards for enforcing baggage policy violations and upselling seats like exit rows or Big Front Seats.

Spirit’s Chief Commercial Officer justified their program as ensuring fair treatment among passengers while enhancing efficiency. They acknowledged that while ancillary revenue increased due to this policy, fairness towards paying customers remained a priority.

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