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update: full-price advertising of fare


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http://www.canada.com/calgaryherald/news/s...80-7075383351aa

Senate blocks airline ad rules

Publication of full fares sought

Sarah Schmidt

Canwest News Service

Saturday, March 22, 2008

OTTAWA - Transport Canada has yet to launch consultations into new rules forcing airlines to advertise the full price of airfares eight months after a law was passed requiring it to do so, raising concerns the popular initiative could be killed.

The long-standing practice of airlines advertising one price for a ticket, then tacking on taxes, fees and surcharges upon purchase, appeared to be coming to an end last spring, when the House of Commons passed a bill requiring airlines to include all the extras in ads.

But the Senate added a roadblock to the so-called "all-in" advertising provision, postponing it until industry and government could determine how to avoid unintended consequences on airlines' competitiveness.

Liberal Senator Dennis Dawson, a former lobbyist for WestJet Airlines, proposed the delay after airline executives appeared before the Senate. They argued the new rules were unfair.

Transport Canada's Patrick Charette said despite the delay in consultation, Ottawa is still committed to the consumer protection provisions.

"We're monitoring the developments," he said. "We're still at the same stage, we're considering next steps."

Michael Janigan, executive director of the Public Interest Advocacy Centre and member of the Travel Protection Initiative, says the delay isn't a good sign.

"My impression is Transport Canada was never interested in implementing this, and has no interest in consumer protection. I can't think of another instance where, in effect, you'd want to encourage misleading behaviour on the grounds that it's good for business."

The airline industry maintains it's unfair to require all-in airfare advertising because most provinces, which regulate how travel agents advertise, require no such provision; only Ontario and Quebec require agencies to include all fees and surcharges in ads.

© The Calgary Herald 2008

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http://www.canada.com/calgaryherald/news/s...80-7075383351aa

Senate blocks airline ad rules

Publication of full fares sought

Sarah Schmidt

Canwest News Service

Saturday, March 22, 2008

OTTAWA - Transport Canada has yet to launch consultations into new rules forcing airlines to advertise the full price of airfares eight months after a law was passed requiring it to do so, raising concerns the popular initiative could be killed.

The long-standing practice of airlines advertising one price for a ticket, then tacking on taxes, fees and surcharges upon purchase, appeared to be coming to an end last spring, when the House of Commons passed a bill requiring airlines to include all the extras in ads.

But the Senate added a roadblock to the so-called "all-in" advertising provision, postponing it until industry and government could determine how to avoid unintended consequences on airlines' competitiveness.

Liberal Senator Dennis Dawson, a former lobbyist for WestJet Airlines, proposed the delay after airline executives appeared before the Senate. They argued the new rules were unfair.

Transport Canada's Patrick Charette said despite the delay in consultation, Ottawa is still committed to the consumer protection provisions.

"We're monitoring the developments," he said. "We're still at the same stage, we're considering next steps."

Michael Janigan, executive director of the Public Interest Advocacy Centre and member of the Travel Protection Initiative, says the delay isn't a good sign.

"My impression is Transport Canada was never interested in implementing this, and has no interest in consumer protection. I can't think of another instance where, in effect, you'd want to encourage misleading behaviour on the grounds that it's good for business."

The airline industry maintains it's unfair to require all-in airfare advertising because most provinces, which regulate how travel agents advertise, require no such provision; only Ontario and Quebec require agencies to include all fees and surcharges in ads.

© The Calgary Herald 2008

Sure....as long as the rules apply to all airlines advertising flights within, and to and from Canada.

That means everyone, regarding their size, as well as all web sites, world wide. It would be blatently unfair if search engines find, say, Cathy, offering $798 fares for HKG-YVR with no add ons, and AC at $859 with add ons.

Which button would you click on first? The $798 one or the $859 one?

This is more regulation for the sake of regulation.

What's next?

Ever checked your phone bill? Cell phone bill? Rental car contract that was supposed to be $29.95 a day? Hotel bill with "resort charges"? What about that $2.99 box of saran wrap at Superstore that is really $2.99 + taxes and a couple of pennies for a bag if you want one.

Your tax dollars at work....

cool26.gif

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Guest rattler

Heaven forbid the public should know how much the government is adding to the price of your airfare. Why this industry continues to be treated as a cash cow is beyond my simple understading.  mad.gif

The airlines fought long and hard to get the ability to break out the various government taxes, AIFs etc from the basic ticket price. The biggest problem was getting IATA approval to the new coding required to do so. However, airlines should be forced to display the "all up price" in their ads etc but then also be permitted to shown the breakdown .... basic fare, fuel surcharge, gst, pst, AIF etc. in the final pricing. This would still give the consumer the ability to protest some of the charges that would otherwise be hidden while at the same time allowing some airlines to reduce their fuel surcharge or perhaps to eat the AIFs. Not likely but ..... smile.gif

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