* Aer Lingus, British Airways cut over 2,000 jobs

* Iberia could start charging for baggage

* Air France-KLM traffic down 3.7 percent

* Aer Lingus and Iberia shares rise

By Tim Hepher

PARIS, Oct 7 (Reuters) - European airlines are slashing more than 2,000 jobs and moving towards U.S.-style baggage charges, raising the prospect of winter disruption as demand picks up.

Irish carrier Aer Lingus (AERL.I) said it would cut 676 jobs and curb pay in a bid to survive the industry's worst recession in decades -- set to cost airlines $11 billion globally this year.

It moved a day after British Airways (BAY.L) announced plans to cut the equivalent of 1,700 cabin crew, drawing a threat of strikes in coming months.

"Job cuts seem to be extreme and draconian and an overreaction to the current difficult economic climate", said Gerry McCormack, national industrial secretary of the SIPTU union which represents Aer Lingus ground staff.

In Spain, national carrier Iberia (IBLA.MC) said it was considering whether to charge passengers for checking bags, borrowing a practice invented by low-cost rivals and which has spread to traditional carriers in the United States.

"This is a trend in the industry. We're studying it seriously but so far we haven't decided how much to charge or when to do it," a spokeswoman said.

U.S. airlines have been ratcheting up their bag-check fees though analysts say they risk alienating flyers. [ID:nN26287100]

United Airlines (UAUA.O) this week offered passengers the right to check in baggage for a year for $249.

Spanish consumer asssociation FACUA said it would sue Iberia if the airline began to charge for baggage. "The law states the company is obliged to include both the passenger and their baggage within the price of the ticket," the group said.

Shares in Iberia and Aer Lingus rose 0.4 percent and 7 percent respectively.

Reuters

Hello Realist,

It is a sign of the times, attempts to pad profit by charging a rate for the bare bone service and then picking your pocket with additional fees for what was once part of the service. It is like ordering a sandwich and having to pay an extra fee if you wanted bread with it and again extra if you wanted the sandwich wrapped to go. Watch your bank statements also, banks have created a revenue stream(s) for them selves with fees that they create as they go. Can't wait for the new bank regulations to take effect. Airlines seem to be going down the same path.

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