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Spirit Airlines Adds
$2 Fee In Defiance of New DOT Consumer Regulations By Jim Douglas |
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February 4, 2012 - Spirit Airlines, which it likes to
bill itself as offering ultra low airfares, has tacked
on an additional $2 dollar fee to its ticket purchases
in the name of new DOT airline consumer regulations.
The Department of Transportation came out with new
airline consumer rules to protect the consumer. However
those rules have not set well with the airlines or with
some congressmen.
The new rules require airlines and ticket agents
to
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Include all mandatory taxes and fees in a ticket
purchase and must be visible to the consumer.
- Require airlines to refund baggage fees if they are lost. |
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- Allow
passengers to hold a reservation without payment, or cancel a
booking without penalty, for 24 hours after the reservation is
made, if they make the reservation one week or more prior to a
flight?s departure and
- And
requires airlines to promptly notify passengers of flight delays
over 30 minutes, as well as flight cancellations and diversions,
and they will be generally prohibited from increasing the price
of purchased tickets.
In
retaliation Southwest Airlines, Spirit and Allegiant petitioned
the U.S. Court of Appeals for the D.C. Circuit to void DOT?s new
rules that would require advertised prices include government
taxes and fees.
Spirit
Airlines then in an effort to once again mislead the public
shows after purchasing a ticket the airlines ticket cost and
fees. Instead of showing the complete break down as the
regulation requires the consumer must then click on a link to
see the breakdown of the taxes and fees. In addition, the
carrier has now included a new $2 charge.
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?The U.S.
Department of Transportation's new supposedly "consumer friendly"
regulation requiring airlines to hold fares for 24 hours after booking
without penalty comes with unintended consequences and is costing
consumers millions.?
?While this may
appear to be a consumer-friendly rule at first, the USDOT has ignored
the cost impact to consumers. As the transparency leader, Spirit
believes that consumers have a right to know that this misguided
regulation is expensive and is hitting consumers directly in their
pocket books. Spirit believes low fares are what help consumers most.?
"People love the
idea of not having to commit to a reservation, but this regulation, like
most, imposes costs on consumers," says Spirit President and CEO Ben
Baldanza. "Wouldn't we all like to eat all we want and not get fat?
Regulators like to try to sell the idea of this rule, but have ignored
the cost impact to consumers. You simply can't eat all you want without
consequences."
?This rule
mandates that we take out seat inventory for those who may or may not
decide to pay for it. This prevents us from selling these seats to
someone who definitively wants to book their reservation and leads to
seats not being filled. The consequence is that we must spread costs
over fewer customers, thus raising the cost for all passengers.?
In 2009, Spirit
Airlines was hit with record fine of $375,000. The airline was fined for
failing to comply with DOT regulations in which the carrier had denied
boarding compensation, mislead fare prices and baggage liability. The
carrier bumped passengers from oversold flights without compensating
passengers and didn?t provide written notices of passenger?s rights as
required by law.
The airline
violated DOT rules requiring airfare ads to state the full price by
omitting carrier-imposed fees from the base fare. Spirit also violated
DOT rules by failing to retain copies of consumer complaints and by
failing to file required reports in a timely manner, the DOT added.
Spirit spokeswoman
Misty Pinson said, ?Selling fares for $9 has made us very popular and, a
few years ago when we adopted this model, we had some growing pains
during the transition. We have addressed all the core issues that caused
customer experience challenges a few years ago, including upgrading our
computer systems and utilizing a new reservations partner.?
Department of
Transportation Secretary Ray LaHood recently said, ?This is just another
example of the disrespect with which too many airlines treat their
passengers, Rather than coming up with new and unnecessary fees to
charge their customers, airlines should focus on providing fair and
transparent service that's what our common sense rules are designed to
ensure."
DOT's top lawyer
sent a letter to Spirit Airlines criticizing the airline's statements on
the pricing regulations. "The rule does not prevent carriers from
disclosing the amount, type, and nature of government taxes and fees." |
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