Had airlines from the start established a base fare with added charges for additional services, no one would have the slightest complaints now about the add-ons.
There are lots of markets that function with that type of pricing. If you want office software for your computer, each additional program you add (database, publisher, project management) adds more to the cost. When you buy a vehicle, each added item you want added results in an additional charge. The pricing for services provided model is pretty common.
IMHO, this situation is a legacy of the old fixed pricing scheme that was in place before air fare deregulation. Because the fares were set at a level where all airlines serving the route made a profit and all carriers charged essentially the same fare, the only way to compete for business was to provide extra services. So airlines offered baggage handling, free food that people actually wanted to eat, blankets, pillows, etc.
With that model in place expectations were created that those amenities were a fundamental part of flying, so now people get upset when those items are taken away. Had the industry been competing on fares from the start, those expectations would have never been embedded.
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Don't wax nostalgic for those good old days, however. In 1970 when I flew from St. Louis to Minneapolis as a student, I flew Braniff at two-thirds student fare, and paid close to $100. When I moved to California in 1973, Pacific Soutwest Airlines (PSA) flew from SFX to LAX for $19. The distance between the airports was identical. The difference in fares was solely because PSA operated only in California and was therefore not subject to federal fare regulation. It was an open market in California and as a result fares were less than one-third of what they were elsewhere.
In constant dollar terms, that $100 flight in 1970 would be the same as paying about $800 now. To go from St. Louis to Minneapolis. At those prices driving a car (or taking a bus or a train) becomes a much more attractive alternative.
That's a big reason why people fly so much now; it is much cheaper. The impact of deregulation has been huge for destination such as Hawai'i and the Caribbean. Without deregulation those locations would not have nearly the number of tourists they currently have. If airplane tickets to Hawai'i cost $2000 each, you might travel to Hawai'i once or twice at most. But when tickets cost less than $600 (and often are even less than that with frequent flyer miles and companion fare offers) frequent travel to Hawai'i becomes possible for many people.
It didn't matter to Northwest I had bought the ticket prior to their fee dates, they simply applied it across the board starting September 1. While I understood why they impose the fee, I still was not very happy.
