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TACA Airlines Fined
For Violating Price Advertising Rules By Shane Nolan |
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June 5, 2011 - The U.S. Department of Transportation
(DOT) assessed a civil penalty against TACA
International Airlines for violating the Department’s
rules prohibiting deceptive advertising of airfares. The
company was assessed a $55,000 civil penalty.
“Consumers have a right to know the full price they will
be paying for air fares,” U.S. Transportation Secretary
Ray LaHood said. “We established airline price
advertising rules to protect the consumer and will take
enforcement action when these rules are violated.” DOT requires any advertising that includes a price for air transportation to state the full price to be paid by the consumer. The only exception, which will end on Oct. 24 due to a recently adopted DOT rule, is for government-imposed taxes and fees that are assessed on a per-passenger basis, such as passenger facility charges. |
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If these
taxes and fees are listed separately, the first mention in an
advertisement of a fare must clearly disclose that the price
does not include these charges and list their amounts.
For
Internet listings, these taxes and fees may be disclosed through
a prominent link next to the stated fare that notes that taxes
and fees are extra, and takes viewers directly to a location
where the type and amount of the charges is displayed. The rules
apply to both U.S. and foreign carriers as well as ticket
agents.
For a
period of time in 2010 and this year, TACA used a program on its
website that allowed consumers to search for flights on exact or
flexible dates. Searches by both methods produced airfare quotes
noting that the fares did not include taxes and fees, but TACA
failed to disclose the type and amount of the taxes and fees as
required by DOT rules.
TACA is
the trade name "brand" comprising a group of five independently
IATA-coded and -owned Central American airlines, whose
operations are combined to function as one and a number of other
independently owned and IATA-coded regional airlines which
code-share and feed the TACA brand system.
TACA, originally an acronym of Transportes Aéreos Centroamericanos (Central American Air Transport), now stands for Transportes Aéreos del Continente Americano (Air Transport of the American Continent), reflecting its expansion to North, Central, South America and the Caribbean. It flies to 44 destinations in 22 different countries. |