The Airline Industry Is The Most Transparent In The World!!!

The government is investigating a lot of things in the airline industry at the moment, most of them with limited merit, in my opinion. Hating on airlines is popular, so it’s no surprise that politicians are taking the opportunity to act as if they’re “advocating” for consumers against the airlines, and in the process wasting everyone’s time and resources.

Most recently there was a Senate report urging the government to crack down on airline fees. The report tackles everything from checked bag fees to cancellation fees to change fees.

Via The Chicago Tribune:

The report, which is based on an investigation by the Democratic staff of the Senate commerce committee, says there appears to be no connection between the price of checked bag fees and the costs incurred by the airlines that impose them.

The report also says that in most cases airlines charge fees for changing or cancelling a ticket no matter how far in advance of a flight the changes are made. And it criticized airline websites that mislead consumers into believing they have to pay an extra fee to obtain a seat.

I suppose in theory some more transparency wouldn’t hurt. Personally I’m not convinced the government needs to get involved, though it’s an area where an investigation doesn’t seem unreasonable.

But the reason I’m writing about this is because the incredulous quote from a spokesperson of Airlines for America, which is an airline industry trade association. Spokeswoman Jean Medina rejected the report’s criticisms with the following:

“It would be difficult to find an industry that is more transparent than airlines in their pricing,” she said in an email. “The fact that a record number of people are traveling this summer further demonstrates that customers always know what they are buying before they purchase.”

It would be difficult to find an industry more transparent than airlines when it comes to pricing… really?!?!?!?!?!

And yes Jean, you’re right. People are choosing to fly more often than ever before because they love how transparent airlines are. I’m sure it has nothing to do with the fact that in many cases flying is the only practical way to travel between two far off places.

Porscha-Glare

You’ve gotta wonder whether the spokesperson in question even believes what she’s saying?

(Tip of the hat to @ChiefGoodfriend)

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Handy Guest

The system does not always result in fairness or transparency for the traveling public, according to the research. The industry needs oversight by government and independent watchdogs to ensure that airlines engage in fair and reasonable practices regarding ancillary fees and offer consumers transparent information regarding all possible fees when purchasing airfare, it said.

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Ben New Member

Why does it matter if the airlines charge more for baggage than it actually costs them transport it. Why can't they charge what they want even if 150% of actual cost?

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AlexS Diamond

This is where the airlines are completely shooting themselves in the foot. If they'd provide EXCELLENT service and treated people as humans and not self-loading cargo, people wouldn't complain or question their practices. It's kind of like a good maid. You know you're probably paying them too much, but you've been using them forever and they do a great job so you don't bother questioning anything.

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jose Guest

There are also many other international equivalents to the American RITA: www.caa.co.uk/airlinestatistics www.caa.co.uk/ukairlinesfinancial

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CraigTPA Guest

This part shows how little these people know about basic economics: "there appears to be no connection between the price of checked bag fees and the costs incurred by the airlines that impose them." Well, duh. Of course there isn't. Change the words "checked bag fees" to "iPhone" and "the airlines" to "Apple" and then see if any rational human being would make this statement. While there are a few exceptions (cost-plus contracts, for example), in general sellers base their price on what they've determined customers are willing to pay for an item or service, and customers do not take the seller's costs into account when they make their decisions. There is an indirect link in that if the price customers are willing to pay won't cover expenses (or at least marginal expense), sellers just won't offer the item at all, but that's a decision taken on the supply side, not on the consumer-demand side. In short, this is why Congress shouldn't listen to people who don't know anything about economics (I'm looking right at you, Kate Hanni...)

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