Who is lying the airlines or the government?

Spirit air ^ | 1/26/2012 | Spirit Air

[mikelets456]

Spirit Airlines Warns Consumers of USDOT's New Mandate to HIDE Taxes in Airfares: MIRAMAR, Fla., Jan 24, 2012 (GlobeNewswire via COMTEX) -- Spirit Airlines has a launched a campaign to warn consumers about the U.S. Department of Transportation's latest fare rules that go into effect this week. Spirit and other airlines are now mandated to HIDE the government's taxes and fees in fares.

"We believe that the better form of transparency is to break out costs so customers know exactly what they are buying," says Spirit's President and CEO Ben Baldanza. "Spirit believes customers have a right to know how much of their fare goes toward government taxes and fees rather than hiding it in the fare."

"If the government can hide taxes in consumer's airfares -- which they are mandating us to do starting this week -- then they can quietly carry out their hidden agenda and increase the taxes consumers bear," adds Baldanza.

Spirit is aware that some policy makers are considering increasing the Federal Excise Tax on air travelers and airlines and doubling several other governmental fees. Another proposal under consideration would add a new $35 takeoff tax to every ticket.

Since these taxes and fees must now be HIDDEN in fares, this frees policymakers to quietly move forward with their planned increases in hopes that consumers will not see what they're doing.

[mikelets456]

Here is the letter from Menendez: Dear Friends:

The days of “bait and switch” air fares are over. The U.S. Department of Transportation (DOT)’s full fare advertising rule that goes into effect today will address the concerns that millions of flying passengers have been raising for years. Airlines have been enticing customers with low advertised prices and then nickel and diming them with hidden fees. DOT is now requiring that airlines prominently display all mandatory fees into a fully loaded sticker price whenever a ticket price is presented to consumers. Put simply, the price advertised is the price that the consumer must pay.

We’ve all been there. We go online, find an advertised fare for $200, buy it, but when we check in -- after paying a fuel surcharge, a booking fee, and taxes – the final price of that ticket is 10-50% higher, or $220-$300 in the end. The new DOT rule would require that the true cost of air travel be displayed.

[RonF]

Who Is Lying, The Airlines Or The Government?

Why do we have to pick one or the other? Seems to me that the most likely answer is "both".

[Joe the Pimpernel]

A VAT is an unitemized tax.

They don't want you to know how much they are stealing from you.

[An American!]

If I had to hazard a guess...both...as they both have an agenda...one for profit and one for tax increase. The government needs more money don’t you know...so increase taxes (hidden or open) everywhere....

[humblegunner]

Interestingly, your title: Who is lying the airlines or the government?
Does not match the actual title of the article:

Spirit Airlines Warns Consumers of USDOT's New Mandate to HIDE Taxes in Airfares

Perhaps a letter or two was misplaced when you copied it into the proper field.

[freedumb2003]

There is nothing that says the government is forcing airlines to “hide” the fare. It just says the fare advertised (and displayed as the fare on the websites) should include taxes and “fees.” At the end of the transaction the airline can and should break it all out like it does now.

I am no big fan of government sticking their nose into private enterprise but the airlines have been playing this game for quite some time and I am glad someone put an end to it. It isn’t like sales tax at between 5 an 10% — those government taxes and fees are a good 30%+ of the final price!

Next up: Car Rentals, especially Rental Insurance.

[In Maryland]

"The new DOT rule would require that the true cost of air travel be displayed."

I am in favor of airlines having to prominently display the total cost of a ticket - but does the rule prevent the airlines from also prominently displaying the breakdown (i.e. Base Fare: $100, Takeoff Tx: $35; Security Tax: $6; TSA Tax: $10 - Total Fare $151)?

[alex2011]

Looks like Spirit is being dehonest. Nobody is forcing them to HIDE anything,they just have to advertise the actual price I will be charged from my CC.

They can say well the ticket price is $100 and oh yeah btw a minor detail, fuel price is $200,luggage fee is $50,Obama tax is $300 CC processing fee is 100$ online fee is $50,etc..
will charge u more than 4100 bucks but the ticket price is $bucks look at us that’s cheap!

if they want to inform people what the taxes and fees are they can say ticket price $1500 which includes the Obama tax of $300,etc.. But Originally any Ads should show the full price. This is simple truth in advertising,bait-and-switch law. same goes for cell phone contracts,actually.

You call car service and they say cost 410 bucks go from A to B,you get in the car and they say that’s $20 well we include the insurance surcharge (we cant drive without insurance),maintaince surcharge ,fuel surcharge (car gotta have gas).

[Beaten Valve]

I flew SPIRIT toLas Vegas last year for a convention.

They’ve got more “additional fees” than Carter has pills.

($35 bucks to check a bag, $3-bucks for a COKE...)