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mahatmakanejeeves

(57,567 posts)
Sat Feb 4, 2012, 05:01 PM Feb 2012

As airfare rule takes off, it might be grounded

As airfare rule takes off, it might be grounded

The Navigator: Bill aims to scuttle new airfare pricing rule

By Christopher Elliott, Published: February 1

Enjoy the government’s new airfare rule. It might not last.

On Jan. 26, the Transportation Department began requiring airlines and ticket agents to quote fares that include all mandatory taxes and fees. Since 1988, they’d been allowed to advertise fares that didn’t include government-imposed taxes and fees.
....

This week, Rep. Tom Graves (R-Ga.) introduced a bill that would reverse the DOT requirement. His proposed Travel Transparency Act, co-sponsored by Rep. Ron Paul (R-Tex.) and Rep. Lynn A. Westmoreland (R-Ga.), gives airline passengers the right to a clear, separate disclosure of the fees and taxes they pay on each airline ticket, he says.
....

A spokeswoman for Graves says his constituents started asking questions about the new DOT rule “on the same day” airline industry representatives approached the congressman’s legislative staff with their concerns. But Graves’s rhetoric closely matches that of Spirit Airlines, one of the carriers that stands to lose the most from the new rule. In an e-mail sent to its passengers last week, Spirit outlined its arguments against the government’s “all-in” price rule.
....

Even if the effort fails, all is not lost for the unhappy airlines. Three carriers, including Allegiant Air, Southwest Airlines and Spirit, have asked the U.S. Court of Appeals for the D.C. Circuit to reverse the DOT rule, saying it violates their First Amendment right to free speech. In a court filing, the airlines say they have the right to let passengers know about the “significant” tax burden on air travel.


First they came for the airlines, and I did nothing.

Corporations are people, my friends.
16 replies = new reply since forum marked as read
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As airfare rule takes off, it might be grounded (Original Post) mahatmakanejeeves Feb 2012 OP
What an upside-down interpretation of the rule frazzled Feb 2012 #1
I can see the airlines' point though Neue Regel Feb 2012 #3
As far as sales taxes go Angry Dragon Feb 2012 #5
I agree, the additional taxes and fees are byzantine and excessive Neue Regel Feb 2012 #6
That is a good point Angry Dragon Feb 2012 #10
Yes, on your phone bill you see the total amount you must pay frazzled Feb 2012 #11
Yes Neue Regel Feb 2012 #12
No, you are comparing apples and oranges joeglow3 Feb 2012 #16
Here's the problem with that Major Nikon Feb 2012 #13
I'm frankly sick of their "free speech" excuse ProfessionalLeftist Feb 2012 #2
Ironically, it is mostly government taxes and fees joeglow3 Feb 2012 #7
But they're (airlines) the ones wanting to hide them ProfessionalLeftist Feb 2012 #8
why are they zeroing in on the airline industry? Skittles Feb 2012 #4
"it might be grounded" BumRushDaShow Feb 2012 #9
We were just saying how much we liked Italy Nevernose Feb 2012 #14
Nothing is stopping them from informing them about the "'significant tax burden on air travel". Massacure Feb 2012 #15

frazzled

(18,402 posts)
1. What an upside-down interpretation of the rule
Sat Feb 4, 2012, 05:16 PM
Feb 2012

Giving the total price of a ticket doesn't mean the fares vs fees and taxes aren't broken out in detail after you click. What is hugely annoying to many of us is to see a lower fare only to realize they've lopped off huge chunks of the real cost until you've clicked on it.

This is an attempt to say, "Hey, let us continue to mislead the public."



 

Neue Regel

(221 posts)
3. I can see the airlines' point though
Sat Feb 4, 2012, 05:24 PM
Feb 2012

What other products do you buy that include non-product costs like taxes, registration, government fees, etc? When you buy a car, does the window sticker include the cost of sales tax and registration? What about a TV at Best Buy? Food at your grocery store? Why should there be a law requiring airlines to include taxes and airport fees in the price they quote you when virtually no other industry has to do it?

Angry Dragon

(36,693 posts)
5. As far as sales taxes go
Sat Feb 4, 2012, 05:35 PM
Feb 2012

Anyone can figure out the slaes tax on an item/state

If you look at airline fees and taxes they jump all over the place
I have seen some with very low prices and then they add huge taxes

 

Neue Regel

(221 posts)
6. I agree, the additional taxes and fees are byzantine and excessive
Sat Feb 4, 2012, 05:45 PM
Feb 2012

And they should definitely be disclosed, but I think airlines are being unfairly singled out. Without looking, can you tell me the various taxes and regulatory fees that appear on your mobile or home phone bill, and how much each one is?



frazzled

(18,402 posts)
11. Yes, on your phone bill you see the total amount you must pay
Sat Feb 4, 2012, 06:29 PM
Feb 2012

... and then the various charges, taxes, and fees are broken out in the details, as explanation.

But it doesn't say your bill is $47, and then you suddenly find out at the end that you owe them $76.

 

Neue Regel

(221 posts)
12. Yes
Sat Feb 4, 2012, 06:47 PM
Feb 2012

Which is why I think the airlines should be required to disclose prices as:

Air fare: $ ( for anything charged by the airline)
Taxes: $
Airport and other Fees: $
Total: $$$

Customers should get the entire cost upfront and be able to see an itemized list of the source of each of the charges. Airlines should have to disclose the total cost when advertising fares or publishing them to their website or when they are published on travel booking (or other) websites such as Expedia, Kayak, Orbitz, etc.

 

joeglow3

(6,228 posts)
16. No, you are comparing apples and oranges
Sun Feb 5, 2012, 06:00 PM
Feb 2012

Look at ads/commercials for cable & phones companies. They advertise a given price that most certainly does NOT include taxes and fees. It is not until you get your bill that you see what it all is.

Major Nikon

(36,827 posts)
13. Here's the problem with that
Sat Feb 4, 2012, 07:00 PM
Feb 2012

First, airline fees are a big part of this equation. Had it not been for the airlines inventing all sorts of fees to go along with their ticket prices, nobody would be having this discussion in the first place.

Next, the ticket taxes are dependent on how many hops it takes to get to your destination. If airline A has a direct flight and airline B makes one or two stops between, the ticket taxes are going to be different. So the taxes can vary depending on how the airline chooses to route the flight, and this may not be readily apparent to someone who is trying to compare prices between airlines.

Skittles

(153,174 posts)
4. why are they zeroing in on the airline industry?
Sat Feb 4, 2012, 05:29 PM
Feb 2012

how about cable, phone, internet - they NEVER quote real prices

BumRushDaShow

(129,304 posts)
9. "it might be grounded"
Sat Feb 4, 2012, 06:26 PM
Feb 2012

Really? This nonsense gets through the Senate, how?

The lunatic media keeps feeding the idiocy. This is an article from their "Life Style" section, but it probably should have come from the Comics section.

And even with this sorry admission (on pg 2):

Even if the effort fails, all is not lost for the unhappy airlines. Three carriers, including Allegiant Air, Southwest Airlines and Spirit, have asked the U.S. Court of Appeals for the D.C. Circuit to reverse the DOT rule, saying it violates their First Amendment right to free speech. In a court filing, the airlines say they have the right to let passengers know about the “significant” tax burden on air travel.


the WP still shills for it anyway in their made-up universe, where "bills" from the repuke House automatically become law - always. No DOA in the Senate. No negotiation between chambers. No veto from the President. They are done deals.

Nevernose

(13,081 posts)
14. We were just saying how much we liked Italy
Sat Feb 4, 2012, 07:53 PM
Feb 2012

And the price of things was always the price given. In the tourist places, the pharmacies, the grocery stores. It was a small convenience that had a big impact. The tax rate the businesses are paying is their business (no pun intended).

Massacure

(7,525 posts)
15. Nothing is stopping them from informing them about the "'significant tax burden on air travel".
Sat Feb 4, 2012, 08:19 PM
Feb 2012

They just need to also tell them the what the ticket cost when everything is added together.

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