Airline concern over new rules gains ally
Allegiant, Spirit and Southwest Airlines are fighting the new federal "no surprise" requirements on disclosing all ticket prices to curb any hidden costs. Now they are being joined by a member of the US Congress.
Rep. Tom Graves, R-Georgia, said he will introduce a bill to cancel the US Department of Transportation rule, which took . The rule requires airlines to roll mandatory per-passenger taxes and fees into the advertised fare, but allows them to break down the costs elsewhere in the advertisement.
"If the American people can’t see these costs clearly, I fear it will be easier for these fees and taxes to be raised without their knowledge," Graves said.
Airlines say they are concerned about "sticker shock" as flyers find higher prices.
The effect should be only temporary, said Anne Banas, editor of SmarterTravel.com. "At first, consumers might face a bit of sticker shock, as pricing will seem much higher upfront," she said. "But ultimately it’ll be easier for them to compare prices across multiple airlines."
Transportation Secretary Ray LaHood has said the rule was adopted to protect consumers from deceptive ads. Airline in the past have make tickets look less expensive than their actual cost. Now all ads must show the entire price, although transportation officials say taxes could be listed in smaller type.
The airlines are fighting the issue in federal courts.
Airlines contend the rule is unconstitutional because it prevents them from highlighting the portion of taxes in each ticket, and that the rule is unfair because taxes on other commodities are revealed at the cash register, not in advertising.
Taxes now add 20 percent to a typical $300 round-trip ticket, said Steve Lott, spokesman for Airlines for America, an industry group.
Spirit has been actively campaigning against the new recently announced rules.
By David Wilkening
David
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