Advertised airfares will soon reflect what you pay

[jsilvers]

I wish they would do that here in Canada. You ain't seen taxes and fees until you've booked a flight in Canada.

Actually, a bill to impose a similar requirement was passed by the Canadian Parliament in 2007, but has not been implemented yet. A quick summary - http://www.straight.com/article-565781/vancouver/federal-rules-transparent-airfare-advertising-expected-late-2012.

 

[Lewisc]

Actually, the airport charges included in the ticket price are assessed on a per-passenger basis (up to $4.50 per segment). Although not technically a tax, they in effect are one, because they are only permitted with FAA authorization. They aren't subject to negotiation between airlines and airports; airlines merely collect the fees and pass them along to the airport (but are entitled to retain a portion of the fee to cover their costs).

It doesn't really matter if we call it a tax or a fee. It's part of the price we have to pay to fly. We have to pay it to the airline and the airline has to pay it to the airport. A low cost airline has the ability to find an alternate airport which charges a lower fee. I'm pretty sure the Lakeland airport charges a slightly lower segment fee.

Paying the cost of running the airport is part of the cost of flying.

That said I don't the law was passed because some airlines weren't displaying a $4.50 segment fee. That was part of the solution but the problem started when airlines like Spirit decided they could promote a fare ($9). A fare which can't be booked, even if you add in all the government fees and taxes.

 

[webworm]

I wish they would do that here in Canada. You ain't seen taxes and fees until you've booked a flight in Canada.

Just today a coworker booked a flight... $99 plus taxes total cost just shy of $500!

Thats one heck of a jump and very typical... well actually the $99 part is pretty rare lol

It's coming in Canada as well but the gov't has given them until Jan 2013 to get their act together. Finally no more of these $29 one way flights with $150 in taxes and other fees. Flights out of the US have so much less taxes and fees compared to here.

 

[vacationclub]

Actually, the airport charges included in the ticket price are assessed on a per-passenger basis (up to $4.50 per segment).

Assessed by whom? The US government? Or a another entity that the ticket buying taxpayer may have no connection to in terms of taxing authority? I believe it's the 2nd one, which is why that one should certainly be considered as simple cost of doing business, and not a tax levied on the passenger directly, but on the airline for each passenger it carries.

Many states charge excise taxes on adult beverages and cigarettes. A variety of taxes on gasoline. Advertised prices for those items include those taxes.

I agree there are precedents to this. I'm not as concerned about hidden taxes on vices as I am on transportation. I hope that all airlines will figure out a way to clearly show what the government is taxing us (not them) right after the first click.

I'm comparing airfares I want to know my total cost. Some of that cost goes to pay for fuel. salaries. aircraft lease payments. taxes and fees imposed by the government Charges imposed by the gov't to pay for security, airports etc is certainly part of the cost of doing business.

Charges imposed by the government to pay for security is not a cost of doing business any more than sales tax is. It doesn't cost the airline anything because they aren't being levied that cost....you are. The airline isn't charging you this tax....your government is. Stores don't list sales tax either....because they aren't charging you that....your government is.

I just want to clarify the difference here. I understand the basis for this law, since companies like Spirit seemed to be tricky. But taxes are taxes and I hope airlines show exactly how much they are charging you...then separately show how much your government is taxing you so it can pay people to pat you down and take your babies milk, and to buy a lot of expensive machines that aren't needed which may have potential long term dangers.

What's next? On-line retailers have to list shipping and sales tax with their on-line prices? Just so the poor ol' internet shopper doesn't have to endure the stress of seeing those final charges on the next page a few moments later?

 

[jsilvers]

Assessed by whom? The US government? Or a another entity that the ticket buying taxpayer may have no connection to in terms of taxing authority? I believe it's the 2nd one, which is why that one should certainly be considered as simple cost of doing business, and not a tax levied on the passenger directly, but on the airline for each passenger it carries.

The airport charges at issue officially are known as Passenger Facility Charges. Airports may apply to FAA for permission to assess a PFC, subject to various conditions (i.e., that the revenues will be used for permitted purposes at the airport). If it is approved, airlines serving the airport are required to collect the fee from passengers on behalf of the airport.

The PFC is computed on a per-passenger basis up (up to $4.50 per enplanement). Additionally, the collected PFCs are not legally considered to be airline revenues but must be kept in trust for the airport, and remitted to the airport on a monthly basis. (This is a particularly important distinction in the event of an airline bankruptcy, because the funds are kept separate from the airline's own funds.)

Simply, put a PFC looks, smells, and behaves like a tax imposed on individual passengers - which is why DOT rules always have treated it like a tax for advertising purposes. (That is to say, until today it could be listed separately, and starting today, it must be included in a total price.)

 

[AR81]

Even with the new advertised prices, the overall prices still increased. As I posted in another thread I have been looking at SW for the past several weeks and my package for all of us was $1012 roundtrip. I can't count how many times I looked at up on various days of the week for the past month and it always stayed the same. I always go all the way to the end for booking price to get the final price. Since Wednesday it has increased to $1556. So its not just the way they are advertising the rates, the rates have simply increased. At least in my area. I have been looking at airlines going out of both Dallas, Texas airports and it appears they have all went up-- Not just the advertising. Southwest and Spirit's at least...

 

[SuzyQue]

Me thinks Spirit is "full of it". As far as I can tell, the new regs do not prohibit the airline from telling you the taxes associated with your ticket. If so, then AirTran is in violation because when you select a fare now (after changing their site to display the post-tax price when getting a quote), you STILL are given the base fare/taxes breakdown. As far as I can tell, the only thing the new regs do is prohibit the use of eye-grabbing "artificial" low rates and require that the posted price be the actual out-of-pocket cost of stepping on the plane (minus any checked luggage, of course).

Agreed. ~GO WINGS

 

[LBIJim]

It's coming in Canada as well but the gov't has given them until Jan 2013 to get their act together. Finally no more of these $29 one way flights with $150 in taxes and other fees. Flights out of the US have so much less taxes and fees compared to here.

About a year ago at this time, I was researching airfare to London from either Philadelphia or New York/Newark. I saw an online ad for Air Canada advertising fares to London from various northeastern US cities for $199 each way (based on round trip purchase). Going to AC's website, sure enough those fares were available for my travel dates. But after adding in about half a dozen taxes and fuel surcharges, the total fare was over $700 each way, about the the same as USAir or Continental. But yep, the "fare" was only $199. I think the fuel surcharge was the highest single element of the total price.

I got a kick out of this and almost booked with AC due to the hilarity of it all. But in the end the extra time involved and a connection in Toronto wasn't worth it.


I never found Spirit's fares misleading or sneaky. The total price was always available before an actual purchase.

Jim

 

[Lewisc]

I never found Spirit's fares misleading or sneaky. The total price was always available before an actual purchase.

Jim

Promoting a $9 fare was intentionally deceptive and misleading. The fact that they provided the total price prior to charging your credit card didn't change that. It only meant Spirit didn't engage in fraud.

 

[Geoff_M]

Promoting a $9 fare was intentionally deceptive and misleading. The fact that they provided the total price prior to charging your credit card didn't change that. It only meant Spirit didn't engage in fraud.

Agreed... While before, every airline eventually showed you the final cost but you often had to navigate part of the check-out process just to see it. The airline no doubt hoped you'd just continue with thd purchase and not realize added costs.

 

[icc2515]

I wonder why the government did this to the airline industry? I love it, I just wish that they would do it to all industries across the board. Especially telecommunications companies. It will never happen as AT&T has too much lobbying clout.

 

[ppony]

I saw this on the news while sitting in MCO to come home from WDW. Ironic. I'm HAPPY to see it!