Okay, the good news, as the headline on this blog post states, is that the government (in the States, but Canada won’t be far behind) is investigating whether airline “fees” are really just backdoor ways to raise ticket prices. So, if the “ticket price” is $199 but there are $250 in unavoidable fees, shouldn’t the ticket price really be $449?
The bad news? The government is only interested because ticket prices are subject to tax, and add-on fees, by and large, aren’t.
So, you may get your wish that the ticket price you’re quoted is the price you pay. But you’ll end up paying a little bit more, because you’ll be on the hook for taxes on the full amount, now.
Personally, I think it’s a fair trade-off. As a story in the New York Times notes, those taxes are what pay for things like airports, which, you know, are pretty important to airlines:
Robert W. Mann, an industry analyst, said airlines were making a mistake by giving passengers another reason to resent them, and by creating a new incentive for them to search harder for the lowest possible fare. …
“It’s different than buying a car, and adding on the options packages,” he said. “It’s almost as if airlines have turned this on its head and said, ‘We’ll sell you the Toyota, but the four tires are extra.’ ”
Next up, please: concert tickets.
Grant Hamilton
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