Spirit Airlines warns consumers against new fare rules

Responding to the U.S. Department of Transportation’s latest fare rules, Spirit Airlines has a launched a campaign to “warn” consumers about the same. Spirit says it believes that customers have a right to know how much of their fare goes toward government taxes and fees rather than hiding it in the fare.

This week the Department confirmed that new regulations that will ensure consumers are being treated fairly when they travel by air are to be implemented.

For its part, Spirit believes that better form of transparency is to break out costs so customers know exactly what they are buying.

Spirit says all airlines “are now mandated to hide the government’s taxes and fees in fares”.

Spirit’s president and CEO Ben Baldanza said, “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.”

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

“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,” stated the airline.

“Suppressing air travel through higher taxes has direct and far-reaching negative implications for the nation's economic health and the unemployment rate. Nationally, the airline industry is an important catalyst for economic activity. Each airline traveller spends money far beyond the cost of the airline ticket, and millions of jobs are supported by airline travellers.”

The airline says by visiting www.KeepMyFaresLow.org, one can learn more about “how to help stop this injustice and keep government taxes and fees low and transparent”.

Misleading

Meanwhile, Business Travel Coalition (BTC) denounced Spirit Airlines for “lying to its customers and the flying public” regarding the same consumer protection rule that went into effect this week.

BTC stated: Using over-the-top fear tactics, the airline warned consumers that: “Spirit must now HIDE the government's taxes and fees in your fares.” This statement is a disgraceful lie; period, full stop.

“With this ill-considered attack on DOT, Spirit Airlines has reached a new low and no doubt secured the Poster-Child crown for 2012 for misleading consumers. It is this kind of reckless anti-consumer behavior, designed to confuse consumers in this new unbundled, optional fee environment - where fees are hidden and base fares are distorted - that has drawn regulatory interventions from Washington and Brussels,” said BTC chairman Kevin Mitchell. “Regulators understand that there is great profit in consumer confusion and have justifiably interceded. Additional consumer-protection work needs to be accomplished with a sense of urgency.”

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