That’s the view of Jay Sorensen of IdeaWorks in a new report, sponsored by Amadeus, and entitled Spirit Succeeds with the World’s Only Fee for Carry-on Bags.

And, the theme of the report is that revenue-hungry airlines should ponder Spirit as a model, for investors’ sake.

Despite “an almost endless supply of often vicious and angry commentary about the airline” online, passengers have embraced Spirit Airlines’ ancillary revenue policies and the airline is thriving, Sorensen argues.

And, they are endorsing Spirit Airlines with their flight purchases, if not their hearts, Sorensen contends.

“From a revenue perspective, IdeaWorks estimates the carry-on bag fees deliver approximately $13 million per quarter or more than $50 million in new revenue annually,” IdeaWorks says, adding that about 20% of Spirit’s passengers opt for the overhead-bin fee.

Sorensen ties much of the airline’s success to its imposition of overhead bin fees for carry-on bags on August 1, 2010, and other like-minded policies (such as no hot food on international flights) — despite the fact that the carry-on bag fee policy triggered Congressional criticism and widespread ire online and in the press.

The airline recently has gone a step further and raised some of the domestic flight carry-on bag fees, which now stand at $30 at the time of booking, $35 during online check-in, $40 at the airport and $45 at the gate.

Bags that can fit under the seat are free.

And, checked bag fees for domestic flights range from $28 at the time of booking to $45 at the gate.

Fees for international flights are higher, but members of Spirit’s $9 fare club get discounts.

“The airline flew 24.5 percent more passengers in the 12-month period following introduction of the carry-on fee than in the one-year period when carry-ons were free of charge,” Sorensen writes.

“And all these passengers are generating spectacular financial results: profit margins in excess of 11 percent trample the puny or negative results posted by American, Delta, JetBlue, US Airways, United, and even Southwest. Spirit’s brand of unbundled service has obviously struck a chord with American consumers.”

Spirit’s previous policy — ie. letting passengers load up the overhead bins for free — was inefficient for airport and onboard operations, Sorensen argues, as gate agents and aircraft crews were checking about 17 bags per flight after passengers had discovered bin space was already full.

And, that led to much inefficiency at the airport and onboard the planes — a situation much-improved since the advent of the carry-on bag-fee policy.

Through a variety of fee policies, Spirit’s ancillary revenue per passenger has soared from $4.80 in 2006 to $43 in the second quarter of 2011, according to the airline.

Sorensen writes:

“When price becomes the product, the marketing strategy is made crystal clear. It requires the airline to strip all unnecessary costs and sell a basic airline seat at the lowest fare. Travelers quickly learn to adapt to Spirit’s methods – - or simply don’t return.

“Strict adherence to the business model prevents the airline from chasing every customer. Business travelers not seeking the perks provided by other airlines are enticed by Spirit’s low fares. The carrier boasts a core following of customers that find Spirit’s minimalist approach and Fort Lauderdale hub very appealing.”

Sorensen admits passengers may not like the new fees, but the airline is transparent about the policy and pushes travelers to make a decision about bags as early in the process as possible. Sorensen writes:

“Email confirmations sent to customers indicate checked and carry-on baggage status and solicit the customer to prepay. Consumers might not like the fees, but the abundance of advance notice effectively prevents any claim of “bait and switch” tactics. The carry-on fee does become progressively more costly if the traveler equivocates.

“During booking the carry-on bag fee is $30 or $35 if paid during online check-in. Waiting until the day of departure becomes more costly with a $40 fee at the counter and $45 at the gate. Payment at the gate is limited to credit cards with no cash accepted.”

Spirit’s experiment has proven to be a success and despite the torrent of criticism, investors love it, Sorensen argues.

Other airlines — yes, those with the aforementioned “puny or negative” bottom lines — should consider imposing their own carry-on bag fees, Sorensen suggests, although he notes they should weigh all the factors and proceed with caution.

But Spirit is redefining the meaning of a what constitutes a “good airline,” Sorensen says.

“Some may believe [being a good airline is] … represented by a more forgiving approach to fees and a gentler style of customer service,” Sorensen writes. “This blandly describes the majority of airlines in the world . . . and unfortunately, it’s a model that fails to deliver consistent profits for investors. By definition, this describes a certain path to failure. Let’s next consider Spirit as a definition of a good airline.”

Sorensen neglects to mention that the US Department of Transportation fined this “definition of a good airline” $50,000 last month for misleading advertising.

There’s apparently only one group of stakeholders — investors — which count, in Sorensen’s view.

And, with airfares rising and carriers cutting capacity and merging, how much freedom do consumers really have when making their flight choices?

Take it or leave it in the increasingly consolidated world of US aviation often comes down to a choice of take it — or stay home.

In other words, Spirit Airlines now brings us B3100 Featherweight Super Light seats, stationary airline seats onboard its new Airbus A320s.

As previously reported, these seats are “pre-reclined” — and now the Spirit marketing machine is out promoting them as environmentally friendly [they are], cost-effective and peace-engendering.

Is a Nobel Peace Prize in the offing?

“Since the new seats are stationary, customers have also praised the fact that there is no longer interference from the seat in front of you moving up and down throughout the flight,” the Spirit press release says.

Spirit says the new seats offer a comfortable ride throughout the flight since passengers do not need to place the seats in a full-upright position during takeoff or landing.

The B3100 Featherweight Super Light seat, from Brice Seating, with 28″ pitch, is said to be more than 30% lighter than other seats. In fact, Spirit says the 178 seats on its currently two Airbus A320s weigh less than the 145 seats on its A319s.

There is also more room under the seat for the few carry-on items that you can bring onto Spirit flights for free.

Spirit currently offers A320 service with the stationary seats on nonstop Fort Lauderdale-Washington, D.C., and Fort Lauderdale-LaGuardia service.

Just look at the following YouTube video in which Baldanza, lying in an overhead bin, defends the airline’s pending action to charge passengers up to $45 to bring a carry-on bag onboard Spirit’s fleet.

httpv://www.youtube.com/watch?v=omYDG-YuSxI

Spirit today sent an email to customers, signed by Baldanza, with a link to the video.

Clearly on the defensive as DOT Secretary Ray LaHood says the department is looking into ways to “mitigate” Spirit’s announced policy, Baldanza defends Spirit’s carry-on policy, points to its innovative new “free personal item allowance,” and characterizes the initiative as a “win” for everyone, leading to “happier customers that pay less!”

The text of the Spirit email follows.

To our valued customers,

We have all seen how carry-on baggage has gotten out of control.  Longer security lines and boarding process, injuries due to overcrowded overhead bins, delayed flights and passenger frustration has become commonplace.

At Spirit, we are always looking for new ways to save you money and improve the customer experience.  We recently announced our latest innovation, which is designed to relieve the carry-on crisis, saving you time and money.

Our solution to the carry-on crisis:

1. Lowered fares
2. Lower checked bag fees
3. Give everyone a free personal item allowance
4. Allow customers to carry on an additional bag for a fee and give them
   priority boarding so they have time and space to stow their extra bag

Everyone Wins!

1. We expect total prices to be lower
2. Security lines will move faster
3. The boarding process will be smoother
4. Deplaning will be faster
5. Passenger and employee safety is improved with less over-stuffed bins

What to expect for travel after August 1st:

1. We have introduced PENNY PLUS™ fares available to our $9 Fare Club members** that are 1¢ each way plus fuel, taxes and fees*.  If you are not already a member, click here to join.
2. We have lowered checked bag fees for $9 Fare Club members.  A family of four checking four bags round-trip will save $80.  Double the cost of being a $9 Fare Club member.  Another reason to join now.  Click here to join.
3. You can bring a FREE personal item onboard, such as a purse, briefcase, backpack or laptop computer.  Other exceptions are:  assistive devices, medicine, umbrella, outer garments (coats, hats, wraps), camera, car seat/stroller, infant diaper bag, reading material for the flight, or food for immediate consumption.
4. If you choose to bring an extra carry-on bag, you may do so for $20 if purchased online as a $9 Fare Club member or $30 online, at the airport ticket counter or kiosk for non-members.  If you choose to wait until the gate to pay, the fee will be $45 which is not preferred since it will slow the boarding process.
5. Shorter, faster security and boarding lines.  Less frustration while boarding and deplaning.  Fewer delays.
6. Happier customers that pay less!

See you onboard soon!  We’ll keep working to improve your experience and lower your fare.

Ben Baldanza
President and Chief Executive Officer
Spirit Airlines

In an interview presented on the Elliott blog, LaHood says: “I think it’s a bit outrageous that an airline is going to charge someone to carry on a bag and put it in the overhead. And I’ve told our people to try and figure out a way to mitigate that. I think it’s ridiculous.”

Asked whether Spirit “crossed the line,” LaHood replies: “I don’t think they care about their customers. That’s what I think. And I think when you charge somebody to use the bathroom, you don’t care about your customers. I mean, it’s pretty clear.”

Meanwhile, Sen. Charles Schumer (D-N.Y.) said he would ask the Treasury Dept. to declare carry-on bags a “reasonable necessity” to bar airlines from charging fees to take them on planes.

If the Treasury Dept. doesn’t act, Schumer says, he will draft a legislative fix to the problem.

A spokesman for the House Transportation and Infrastructure Committee told Tnooz last week that the committee may consider a hearing on the pay toilet issue to see whether U.S. airlines plan on following Ryanair’s lead.

Passengers are allowed to board a jet with a carry-on for free if it fits under the seat, but there is a long list of excluded items, including “food for the flight.”

Other carry-on items excluded from under-seat stowing include umbrellas, cameras, infant diaper bags [no word on adult diaper bags], assistive devices, coats, wraps, hats, car seats, strollers and reading material.

The airline charges $25 for a first checked bag when the fee is paid online or over the phone and $45 when checked in at the gate.

Members of Spirit’s $9 Fare Club pay reduced fees for carry-on and first checked bags, at $20 and $15 [for domestic flights], respectively.

The carry-on policy went into effect for reservations purchased starting yesterday for travel Aug. 1, 2010, and after.

The $10 reduction on checked bags for $9 Fare Clubs members is good on tickets purchased beginning July 1 for travel Aug. 1, 2010 and beyond.

Forrester Research senior travel analyst Henry Harteveldt feels that Spirit, known for its outrageous marketing forays, may have gone a little too far this time with its carry-on bag fees.

“To charge people to check bags and bring them on the plane could cross the line to provoke a bad reaction from consumers and could provoke bad reaction from Washington, D.C.,” Harteveldt says.

The airline, of course, characterizes the move differently, saying that it is “progressing to the next phase of unbundling…” with its carry-on bag fees and reduced bag fees for $9 Fare Club members.

In another move, Spirit unveiled Penny Plus Fares — a penny fare plus taxes, fees and fuel — on 1 million seats annually for members of its $9 Fare Club.

So, for example, a seat on an Atlanta-Myrtle Beach flight, if available, would cost  $31.03, including the ticket, fuel, and taxes and fees.

While Harteveldt thinks the carry-on-bag fees are off-base, he welcomes Spirit’s penny-fare initiative.

“One thing Spirit is doing right is the $9 Fare Club,” Harteveldt says. “If you join the club, they are saying we’ll make a commitment to you to create special value. On that point I thnk it is terrific. They are being very creative.”

Here’s Spirit’s carry-on fee schedule:

The primary security changes visible to the public — at least for international flights bound for the U.S. — were that passengers would be restricted to one carry-on bag and would be subject to longer screening times.

There were unconfirmed reports that passengers on inbound international flights, at least, would not be allowed to wander about the cabin, grab items from overhead bins one hour prior to landing, or place blankets on their laps, as suspect Umar Farouk Abdulmutallab allegedly did.

The one-hour before landing restriction defies logic. Yes, the suspect allegedly sought to blow up the Delta/Northwest flight just before landing in Detroit, but might not future terrorists adapt to the new restrictions and try to do their thing a couple of hours earlier in the flight?

It remains to be seen what impact the limit of one carry-on bag and the new security measures will have on air travel if they become permanent.

Certainly, the incident was an untimely one for the travel industry as it struggles to turn the corner and recover.

If people continue to travel at current or greater levels than today,one unintended consequence is that the carry-on bag restrictions may mean more fee revenue for airlines, or conversely it could dissuade budget-conscious travelers, including families, from booking airline tickets at all.

For a family of four, if each passengers checks one bag which they might previously have stuck in an overhead bin, the extra fees might mean an additional $200 or more toward the cost of a roundtrip flight.

One of the ironies of the incident is that Schiphol Airport, where flight 253 originated, is said to have fairly strict screening and security measures in place.

So, how did the suspect talk his way past screeners in Amsterdam — or was he interviewed at all?

One of the most disturbing security aspects of the incident is that Abdulmutallab had come to the attention of U.S. intelligence agencies at least several weeks ago, but his name was missing in action on no-fly lists — and he apparently wasn’t even flagged for secondary screening.

In the U.S., this sort of the left hand doesn’t know what the right hand is doing among intelligence agencies was supposed to have vanished with greater coordination after 9/11, so this lack of intelligence-sharing or actions will need to be examined.

The TSA is well into the process of transitioning responsibility for matching no-fly lists with flight manifests from airlines to the TSA as part of its Secure Flight program, and began requiring travelers to provide their date of birth and gender when booking flights.

This seemingly was intended to streamline control of the no-fly lists and fine-tune data collection, but wouldn’t have addressed the Northwest incident because the suspect apparently never made it onto a no-fly list.

Some counter-terrorism experts believe that security personnel at airports around the world should adopt the behavioral screening measures that the Israelis use, and speculate whether Abdulmutallab would have been able to talk his way through such a screening techniques with the pressure of knowing that he allegedly had the explosive, pentaerythritol, sewn into his underwear.

Because rigorous pat-downs of passengers on a mass scale are impractical and undesirable, look for increased use of so-called strip-search machines — devices using millimeter wave passenger imaging technology — at airports around the world despite their intrusive aspects.

After all, magnetometers are severely limited in that they can detect guns and metals, but can’t expose plastic explosives, powders or liquids concealed on a terrorist’s body.

Another irony of the heightened security measures is they are being introduced a few months after the Registered Traveler program appears to have lost its juice with the demise of Clear.

Some airlines now are advising passengers to arrive 3 to 3-and-a-half hours before their flights, so speeding Registered Travelers through some of those security lanes would have looked all the more appealing these days.

Many people feel that airport security measures already were over the top even before the Northwest flight 253 incident.

Security officials will have to make compelling arguments that they are installing effective counter-terrorism measures if they hope to mute some of that criticism.