Peter Greenberg Worldwide Radio Spotlight: Airline Fee Transparency Debate [ 18:55 ] Play Now | Play in Popup | Download

Excerpt from Senator Boxer's letter

BB: Peter, we do that when you pick the exact day. And we show you around the days too because our consumers are flexible in their travel. We try to save them $20 or $30 if they’re willing to move around a little.

PG: Ben, you obviously saw Senator Boxer’s letter. What will be your response to it?

BB: I already responded to the Senator, but we chose to keep it private because we didn’t want this to be a public debate. As you probably know we are in a lawsuit along with Allegiant and Southwest against the DOT on these rules so all of our arguments are clearly laid out in that case. We just outlined the basis of that case to the Senator and respectfully disagreed with her.

To respond to Kevin, he said that the unbundling becoming more complicated. While that might be true, he’s missing a major point. Unbundling also saves consumers millions of dollars a year because when I fly Southwest for example, I get two bags free. Are those really free? Of course not, I’m paying for the two bags. If I don’t check the bags, I don’t get a discount on my ticket price. At Spirit, we unbundle the price of bags so if you don’t take bags, you don’t pay the price for bags. And if you take bags you pay the price. Because we’ve unbundled, we let consumers customize their travel and they only pay for what they use and save on what they don’t use. That’s empowerment to the consumer.

KM: I’m not taking issue on unbundling. I think that will finally give the airline industry a sustainable and profitable revenue stream. The issue is it has become more complex and confusing to consumers and the DOT has the right and authority to intervene and make sure that consumers are not misled when they go on flights like yours or show up at the airport and get surprised by hidden fees. Peter I’d like to clarify one thing: the new total price that is being required to disclose by this rule includes mandatory fees and taxes, not check bag fees or all the other optional fees.

BB: Kevin makes good point because of the regulation is likely not the price you’re going to pay, but rather a different starting point to which you’re going to add your other options and you’re still going to see a different price at the end. The difference is now it’s going to be less clear to you what you’re paying the airline and what you’re paying in government taxes.

PG: Ben let me jump in for a moment. On the case that you’re making in court, am I correct that you’re arguing that the right of free speech is being infringed on?

BB: Yes, we are definitely arguing our rights to free speech are being infringed on.

PG: Thank you for both of you gentlemen joining us in this debate that will continue. And by the way there are no additional fees or taxes for this conversation.

Where do you fall on the issue of fee-transparency? Do you want to see the complete price or should consumers see the impact of airline taxes?

Related links on PeterGreenberg.com:

• DOT’s New Passenger Rights Rules
• Passenger Rights on the CBS Evening News
• The DOT’s New Air Travel Rules Explained
• Passenger Bill of Rights Arrives: The Early Show Report

By Peter Greenberg for Peter Greenberg Worldwide Radio.