Delta Air Lines Inc., the world's biggest airline, said Wednesday it will impose a $15 fee to check a first bag, becoming the last of the six legacy airlines to impose such a fee.

The airline also said it is cutting certain other fees as it aligns its policies with those of Northwest Airlines, which it acquired last week.

Atlanta-based Delta said that effective immediately, for traffic on or after Dec. 5, customers flying within the U.S. will be charged $15 for the first checked bag and $25 for the second checked bag when traveling domestically, consistent with Northwest's existing policies.

Customers who purchased Delta tickets on or before Wednesday, and who are traveling on or after Dec. 5, will be charged $50 for a second bag, but will be permitted to check their first bag without charge based on Delta's previous policy. Customers flying in first or business class, including SkyMiles Medallion members and WorldPerks Elite members, will be able to check up to three bags, up to 70 pounds each, for free, Delta said.

Delta also said it is eliminating SkyMiles and WorldPerks award ticket surcharges, reducing reservation sales direct ticketing charges and eliminating curbside check-in administrative fees.

Effective immediately, Delta will eliminate the $25 to $100 fuel surcharges assessed for SkyMiles and WorldPerks award ticket travel originating from the U.S. and Canada. The surcharges were instituted earlier this year by both airlines due to high fuel prices, which have declined significantly since their record level in July.

As of Thursday, Delta will reduce the fee assessed for tickets purchased over the phone from a reservations sales representative from $25 to $20, consistent with Northwest's policy. Delta will also reduce the fee collected when customers redeem either SkyMiles or WorldPerks award travel over the phone with a reservations sales representative from $25 to $20. There is no charge for customers who book tickets and redeem award travel online at Delta's Web site or Northwest's Web site.

As for curbside check-in, Delta said that, effective Dec. 5, it will drop the $3 fee it has been charging.

Delta also said that last week it began offering coach customers on certain flights the ability to purchase a better seat assignment in their cabin for $5 to $25, depending on distance traveled and seat location. The so-called "coach choice seats" represent less than 10 percent of all seat assignments available on Delta-operated flights, the airline said.

Most other Northwest baggage policies and fees will be aligned to Delta's structure, effective Dec. 5, Delta said. Travel on Delta and Northwest tickets purchased prior to the announcement of the changes will continue to be governed by prior Delta and Northwest policies.

Delta completed its $2.8 billion stock-swap acquisition of Eagan, Minn.-based Northwest on Oct. 29, creating the world's biggest airline in terms of traffic. The operations of Northwest, which is now a Delta subsidiary, will be integrated with Delta's over the next one to two years.

The major U.S. airlines have cut some fares for the Thanksgiving and Christmas seasons.

The airlines, in the midst of their worst year since at least 2005, may see the price-cutting as necessary in the face of a slumping economy that could cut into both leisure and business travel. Airfare experts say they typically don't see this kind of price-cutting until the last couple of weeks before big holidays.

Northwest Airlines started the rush in late October with a broad holiday fare sale, and most other major carriers matched the prices

Some of the sale fares have blackout dates on Nov. 30 and Dec. 1 - the Sunday and Monday after Thanksgiving - and Dec. 20. And there are only a handful of "super off-peak" days, as Northwest calls them.

Some of the cuts are dramatic. Delta shaved the cheapest price for an Atlanta-Nashville round trip around Thanksgiving from nearly $500 to $238. The cheapest Minneapolis-Seattle flight is $248.

In most cases, the prices are good until at least late November.

Airlines aggressively raised fares and fuel surcharges last year and early this year but stopped when the economy slowed noticeably.

Carriers would rather not be cutting prices now, but demand may be slowing faster than airlines can reduce the supply of available seats.

While airfares in 2009 may decrease slightly, overall travel costs may increase as airlines continue their pursuit of expanding fees for services such as in-flight meals and checked baggage, American Express Business Travel (AEBT) reports in their new 2009 Forecast.

The authoritative survey said that AEBT expects the average domestic trip, including airfare, car rental and hotel stay, to increase to a total of approximately $1,139. Furthermore, additional travel expenses, including baggage fees, dining, airport parking and even package shipping, can add an estimated $400 to the total trip cost.

The 2009 Forecast provides insight into global trends and the overall business travel landscape for 2009, including regional forecasts for North America, Europe, Latin America and the Caribbean. AEBT said it has adjusted the results of its forecast in anticipation of a global economic slowdown. Both suppliers and buyers of travel and related services are expected to face new operating challenges in the coming year.

"Based on forecast economic conditions for 2009 and the substantial increase in fares already experienced in 2008, it is possible that airfares in 2009 may decrease," said Hervé Sedky, vice president and general manager of global advisory services for AEBT.

"However, if you include the costs of additional travel expenses including baggage fees, dining, airport parking and even package shipping, it can add an estimated $400 to the total trip cost," said Sedky.

The proliferation of new fees and a delicate supply and demand balancing act will determine whether airfares remain steady, increase or potentially decrease compared to 2008.

"In response to the record energy prices in 2008, many airlines began charging fees for different services such as checked luggage, in-flight refreshments and aisle seating," Sedky said. "To help mitigate the impact of these new charges, which can increase air travel costs up to an additional 15 percent per trip, we advise companies to consider increasing their focus on demand management to ensure planned trips meet the guidelines designed to promote the most effective use of their business investment."

Key highlights of the survey include:

• Capacity cuts are likely to lead to a shortage of available seats at lower price points, while changes in ticketing and minimum-stay requirements, uncertainty surrounding the future price of jet fuel, movement in airline consolidation and alliances and tighter controls over contract performance measurement are likely to drive price increases.
• Prices are predicted to experience downward pressure due to a slowing global economy, improved demand management by corporations and stronger traveler compliance. The expansion of low-cost carriers, more efficient aircraft and airline operations and the continued liberalization of the industry are also expected to mitigate increases.
• Although American Express Business Travel forecasts some rate growth in the global hotel industry, most regions will likely experience declines in occupancy, which will keep rate increases below the level of those seen in 2008. The record oil prices that began in 2008 are expected to continue to impact the hotel industry and airline capacity cuts should drive down demand in some markets. As new hotels expand global supply and demand decreases in some markets, travel buyers should have increased bargaining power for 2009 rates.
• As economic conditions continue to draw attention to meetings as a source for savings, senior business leaders are expected to seek further visibility into meetings spending and aim to measure the return on investment of meetings and events for their companies.
• Effective demand management tactics and a movement toward shorter events in more local destinations should help corporations achieve the best return on investment.
• Implementing and managing meetings policy is expected to provide companies the ability to drive certain cost-saving behaviors. Based on a recent survey of American Express clients, over 70 percent of companies do not have a stand-alone meetings policy.
• Technology developments offer cost-effective ways to supplement meetings and events schedules. Teleconferencing and social networking sites are gaining popularity as tools to strengthen the interpersonal relationships created through traditional meetings.
• Leveraging transient hotel programs with a meetings hotel program is expected to enable companies to have visibility in both areas and drive savings. Negotiating packages for the preferred properties will likely simplify the process to drive and support compliance.

Effective January 1, 2009, American Airlines is discontinuing the minimum mileage guarantee for non-elite status members for flights on American Airlines, American Eagle®, AmericanConnection®, oneworld® member airlines, AAdvantage® participating airlines as well as rail service and codeshare service booked under an AA flight number.

With this change, customers will earn AAdvantage miles equal to the actual distance flown or the applicable percentage* of the miles flown, and any associated bonuses will be calculated accordingly. Similarly, elite status qualifying miles and points earned for travel on eligible flights will also be based on the actual miles earned. AAdvantage Executive Platinum®, AAdvantage Platinum® and AAdvantage Gold® members are exempt from this change.

The new policy will apply to non-elite status members traveling on or after January 1, 2009, regardless of when the ticket was booked or purchased. Flights flown on or before December 31, 2008, will continue to accrue AAdvantage miles under the current policy.

Formerly fast-growing Southwest Airlines will cut its capacity in the first quarter, the first time in CEO Gary Kelly's 23 years at the carrier that it's reduced capacity in any quarter.

In a conference call with analysts and media, Kelly also suggested that Southwest could have less capacity for the full year, which would also be a first.

Southwest, the USA's most-profitable carrier over the past decade reported its first quarterly loss in more than 17 years - because of an accounting rule that forced it to write down the previously bloated value of its fuel hedges for future deliveries to reflect the more recent dramatic drop in oil prices. The company lost $120 million, or 16 cents a share, vs. a net profit of $162 million, or 22 cents a share, in the third quarter of 2007.

Its profit excluding special items of $69 million, or 9 cents a share, beat analysts' consensus by 2 cents a share, according to Thomson Reuters. That profit was helped by $448 million in cash gains on fuel-hedging contracts.

Continental Airlines also reported a third-quarter loss on Thursday: $236 million, or $2.14 a share. Excluding special items, the loss was $145 million, or $1.32 a share. Revenue grew nearly 9% despite the shutdown of its largest hub, at Houston, for more than two days because of Hurricane Ike.

During a conference call with analysts and reporters, Kelly was almost dismissive of Southwest's net loss. He pointed to record third-quarter revenue, its better-than-expected third-quarter operating profit and healthy demand for seats in the fourth quarter.

Southwest's write-down was required by "mark-to-market" accounting rules that previously allowed the carrier to report gains when rising oil prices inflated the value of contracts for future delivery of fuel held in the carrier's hedging portfolio. Because oil prices fell dramatically in September, the value of Southwest's hedging portfolio fell, and accounting rules required it to take write-downs on a portion of those contracts.

Still, he cautioned that the ongoing economic crises and the unprecedented volatility in oil prices are creating "an environment where it makes no sense to be growing." The impact of the crisis on demand could be much worse than anyone expects, he said.

United will begin collecting a fee when miles are redeemed to upgrade an economy ticket. The policy change will be effective for upgrade awards requested on or after July 1, 2009.

The amount of the fee will depend on the origin and destination cities as well as the type of ticket purchased. For example, most economy customers flying to a destination within the continental U.S. will be charged 15,000 miles and $50 to upgrade to business class (those who pay full-fare economy will pay 5,000 miles and no fee).

American Airlines also charges a fee when customers use miles to upgrade.

Six U.S. carriers have received tentative approval from the U.S. Transportation Dept. to begin offering third-country, code-share service to Russia.

Russia opened the door for the resumption of third-country code-share service under an agreement it reached with the U.S. in July, allowing for six code-share routings by passenger carriers. The agreement allows the airlines to operate the services with airlines in the U.K., Belgium, the Netherlands, France, Finland, Switzerland, Hungary, Italy, Denmark, Norway, Sweden, Romania, the Czech Republic, Poland and Austria.

DOT said Oct. 15 that it decided it would get the most benefit in terms of service options and competition by giving one routing apiece to six separate carriers: American, Continental, Delta, Northwest, United and US Airways. Four of those - American, Delta, Northwest and United - already had pre-existing authorizations they had been unable to use.

Travel agents most likely will be required by airlines to collect passenger data - name, gender and date of birth, along with a passenger's "redress code" - when they book airfares under a new rule announced October 22 by the Homeland Security Department that ASTA has said could impose enormous extra costs on agencies. In its Rule, the TSA estimates that the requirement will cost travel agencies from $182 million to $276 million to implement in the next 10 years.

The redress code is provided to passengers whose names are similar to a name on the watch list but whom the government does not consider a threat.

The rule, which DHS said results from a recommendation by the 9/11 Commission, transfers the responsibility for matching passenger data to names on the terrorist watch list from airlines to the Transportation Security Administration (TSA) and requires airlines to collect a passenger's full name, date of birth, and gender when making an airline reservation.

The TSA's Rule states that while it does not directly require travel agents to collect the information, airlines can impose that requirement as part of their contracts with the distribution channels.

The TSA stated; "The rule does not directly regulate travel agents. However, the rule requires aircraft operators to ensure that travel agencies request the additional passenger information. Therefore, travel agents, like covered aircraft operators, must spend additional time to complete airline reservations. TSA estimated the average annual cost to travel agents, discounted at 7%, will range from $26 to $39.3 million."

The DHS said that this additional information is expected to prevent most inconveniences at the airport, and will be particularly important for those individuals with names are similar to those on the watch list.

ASTA planned to issue a statement as soon as it examined the Rule. The Air Transport Association, representing the major airlines, said it welcomed the move to relieve carriers of the responsibility for the watch list, but said it would comment on the Rule once it has examined it in total.

In comments on the Rule filed last year, ASTA stated that Secure Flight "will impose an enormous unfunded mandate on the private sector, a major portion of which is going to fall on the travel agency industry that delivers the majority of passengers into the airlines' seats. ... Failure to adhere to this principle will lead to additional travel agencies being forced to leave the business."

"Among the most significant concerns," ASTA declared, "is the TSA's underestimation of the financial impact of the proposed rules on travel agencies. For example, first-year costs associated with data collection are estimated by TSA to be $22 million. In comparison, ASTA estimates first-year costs, including implementation, to be $68.5 million. ASTA's figures are based on the results of a Premium Member poll and consider initial costs associated with agencies' automation updates (profile systems and scripts) and initial agent and customer training. Over the next decade, the TSA expects the cost to travel agencies to be $249 million compared to $310.5 million as predicted by ASTA."

While TSA said that it expects Secure Flight to dramatically reduce the number of passengers misidentified as a match to the watch list, TSA will continue to provide a robust redress process through the Department of Homeland Security's Traveler Redress Inquiry Program (DHS TRIP) (www.dhs.gov/trip), a single portal for travelers to seek redress for adverse screening experiences and resolve possible watch list misidentification issues. Secure Flight will integrate DHS TRIP, preventing future delays for passengers who have successfully completed the redress process.

Michael Chertoff, the US homeland security secretary, has expressed surprise at European resistance to a program that requires visitors to the US to provide personal information online before travelling.

The travel notification system, which becomes mandatory in January, requires passengers from countries whose citizens do not require visas to register online with the US government at least 72 hours before departure.

The notification system applies to citizens of the 27 participating countries in the US visa-waiver program, which allows 90-day visits without a visa. In an interview, Mr Chertoff dismissed suggestions the "electronic system for travel authorization" was a form of visa.

It's not too soon to start thinking about traveling next year. In 2009, a series of new rules and regulations kick in that could affect your vacation. Ignore them, and you might find yourself delayed or denied access to your destination.

Passports will be mandatory for all border crossings

On June 1, the U.S. government will implement the full requirements of the land and sea phase of the Western Hemisphere Travel Initiative (WHTI). That means U.S. citizens entering the United States at sea or land ports of entry must either have a passport, passport card or WHTI-compliant document. It's a major -- and long-anticipated -- change from the current rules, under which you can cross the border with either a passport, passport card or a government-issued photo ID, such as a driver's license, along with proof of citizenship, such as a birth certificate.

Different travelers, different ID options
If past history is any indication, there will likely be a crush of passport applications in the months before the June deadline, so it makes sense to start the process now. Depending on your travel plans, you may want to consider one of the following documents:

Passport: The original blue book is valid for entry into the U.S. by land, sea or air and is the only valid document for most travelers entering the U.S. from non-WHTI countries. First-time applications are $100 for those 16 or older, $85 for those 15 or younger. Adult renewals are $75.

Passport card: Introduced this summer, the new passport card is a wallet-sized card that is valid for travel between the U.S. and WHTI countries when crossing by land or sea. It is not valid for air travel. Fees are $45 (16 or older), $35 (15 and younger) and $20 if ordered when applying for a new or renewed passport book.

NEXUS and SENTRI cards: Designed for frequent border crossers, these cards provide expedited crossing between the U.S., Canada and Mexico for travelers willing to undergo a background check, in-depth interview and fingerprinting. The NEXUS card is valid between the U.S. and Canada; the SENTRI card, between the U.S. and Mexico. Fees are $50 and $122.25, respectively.

Enhanced driver's licenses (EDLs): Several states are developing EDL programs, which, like the passport card, will be valid for border crossings by land or sea (but not air). Currently, Washington state and New York offer an EDL option - at a $15 and $30 premium over standard driver's licenses, respectively - with Vermont and Michigan expected to introduce versions in early 2009.

Airlines must quote a total price for European tickets

The European Parliament this year approved a new "transparency" rule mandating that airfares have to include all taxes, fees and charges added to the basic ticket price and known at the time of publication.

It is expected to take effect either in late 2008 or early 2009, according to the EU. At least theoretically, that should mean no more unpleasant surprises when you buy a ticket for travel within Europe or to Europe. Under the rule, airfare or air rate, taxes, airport charges and other charges, surcharges or fees, such as those related to security or fuel, have to be included in the price of the ticket.

And any optional price supplements must be communicated in "a clear, transparent and unambiguous way at the start of any booking process" and allow passengers to opt-in for them, according to the EU.

Visas go electronic

The Department of Homeland Security's new Electronic System for Travel Authorization (ESTA) will become mandatory on January 12, 2009. It's a fully-automated, electronic system for screening passengers before they begin travel to the United States under the Visa Waiver Program.
(The Visa Waiver Program allows nationals of 27 countries to travel to the United States for tourism or business for stays of 90 days or less without a visa.)

It's still unclear how this will affect Americans traveling to one of the countries who participate in the Visa Waiver Program. Last summer, EU ministers expressed misgivings about parts of the program, and it is possible that traveling to one of those countries may involve answering more questions and a different (and possibly confusing) application process.

Passengers get a bill of rights -- maybe

Last year, in response to increasing consumer frustration over flight delays, the State of New York enacted the New York State Passenger Bill of Rights. It provided fresh air, waste removal and adequate food and water for passengers on flights delayed by more than three hours. Although the law was struck down by a federal appeals court this spring, that decision has been appealed, and it may become law in 2009 or later.

Jeff Miller, a travel industry attorney based in Columbia, Maryland, believes the bill of rights stands a good chance of being upheld by New York's Court of Appeals. "But one way or another," he adds, "I think this is going to go to the Supreme Court."

If that happens, New York won't have a passenger bill until 2011, at the earliest. But the chances of such a law being enforced at the national level are reasonably good, according to observers who say either airlines would have to adopt the same standards nationwide, or that other states would pass New York-style laws. Either way, that's good for passengers.

'Tis the season to start planning your holiday vacation. While this year's shaky economy will force some to roast their chestnuts and stuff their stockings at home, others are already building their far-flung itineraries and checking them twice. For many intrepid holiday travelers, Christmas is just not complete with a passport, a suitcase of good cheer, and a warm bed as far from home as the North Pole.

But deciding where to celebrate is not as simple as it is during other times of the year. Not surprisingly, fares and rates tend be higher around the holidays, which can dictate which destination you choose. But local customs (13 Santa Clauses of Iceland or roving masked musicians in the Caribbean?), unexpected seasonal closings, even flight availability-especially in the US, when you're competing for seat space with whole families flying grandma's house-all factor into the equation.

In truth, the holiday traveler's choices are endless. There's a quintessential white Christmas in New England celebrated amid the cobblestone streets of historic Boston, where roasted lobster trumps Turkey on holiday menus. Further to the south, gracious living comes to life in the Victorian mansions of Charleston at holiday time, and eggnog is made with local bourbon. In Santa Cruz, California, Santa arrives by-what else-surf board.

On the other side of the pond in Munich, travelers and locals alike look forward to the traditional crafts and hot spiced wine in the Marienplatz Christmas market. New Zealand-where it's summer in December-serves up nighttime fishing, sub-tropical beaches, and award-winning wines. And in Bali, with its sunsets over temple spires and miles of terraced rice paddies, expect holiday dishes laced with Kaffir lime jus. OK, not everyone has visions of exotic locales dancing in their head. For many, a simple change of scenery will do the trick in conjuring the holiday spirit and supplying a dose of much-needed rejuvenation at the end of the year.

So, dash through our dreamy destination options and find yourself a merry little Christmas.

• Charleston - Why Go: Pecans roasting on the fire instead of chestnuts. - Eggnog laced with bourbon. - Choirs singing spirituals at Drayton Hall plantation.
• Bali - Why Go: Miles of terraced rice paddies. - Instead of carols, the haunting sound of the gamelan gong. - Watching Christmas Eve sunset at the island temple of Tanah Lot.
• Bay of Islands, New Zealand - Why Go: Barbecues on subtropical beaches. - Summer in December. A cooler of Steinlager beer instead of eggnog. - Deep-sea fishing at night.
• Boston - Why Go: Old-world ambience. - New England coziness. - Beacon Hill's cobblestoned streets dusted with snow.- Roasted lobster in lieu of Christmas turkey.
• Edinburgh - Why Go: Fireworks lighting up the sky from Edinburgh Castle to the Palace of Holyroodhouse.- Bagpipers playing "Amazing Grace" around the Sir Walter Scott Monument.
• Montreal - Why Go: A quiet celebration in the Canadian city that Harriet Beecher Stowe described as "a mountain of churches."- A spin in one of the many outdoor ice-skating centers (our favorite is the Patinoire du Bassin Bonsecours in Old Montreal).
• Munich - Why Go: Church bells ringing through the Alps.- Trading that tame cocoa for a steaming cup of gluhwein (hot spiced wine) at the Marienplatz market.
• Park City - Why Go: Snow, snow, snow. Schuss Utah's famously light powder and take an après-ski stroll down funky Main Street, the hub of this former mining colony.- One town, three resorts: Park City Mountain Resort, Deer Valley, and the Canyons.
• Puerto Rico - Why Go: "Jingle Bells" set to a salsa beat.- Instead of pine trees, palms and exotic flora in El Yunque rain forest.- Evening strolls through a 500-year-old Spanish colonial city on the Atlantic.
• Santa Cruz, CA - Why Go: Thousand-year-old redwoods.- Santa arriving by surfboard.- Still-crazy-after-all-these-years hippies co-existing peacefully with over-caffeinated young bucks.

Meet with Passageways own Disney Expert, Tammy Sofonia. Tammy's expertise can help you customize the perfect Walt Disney World dream vacation just for you!

Join as at one of the following events and start dreaming!