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All Inclusive Ticket Prices

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Old 16th Feb 2006, 13:44
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All Inclusive Ticket Prices

I know this has been covered before on this forum, but when will airlines finally start advertising the price that you will pay, rather than these misleading "free" flights. I have noticed BA have done well on their website.

However I just booked a flight from MAN to STR on HLX which was advertised as 0 pounds (valentines promo) each way. The taxes and charges come up to a stonking 47 squid! (Still cheap for a round trip to STR) I know Ryanair have long been slated on this, but on this occasion I think they are being much fairer. Taxes and charges on a "free" FR flight (say to DUB) work out miles cheaper! This too after acknowledging that the taxes at STR are actually lower than at DUB!

At what point are the T's and C's actually seen to be contributing to profit?

Wasn't there supposed to be some official ruling on this sometime?

Last edited by masalaairlines; 16th Feb 2006 at 14:54.
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Old 16th Feb 2006, 19:10
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Actually I hope they never do. Seeing the tax and charges as an extra line item in a bill gives transparency. You can actually see what each government and airport is taxing/charging . I'd advocate it for all goods and services.

I don't believe the taxes and charges could ever directly contribute to the airlines bottom line, but I'd bet they are kept somewhere interest bearing before being handed over to the govt / airport at the end of the month.
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Old 17th Feb 2006, 09:55
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An interesting little experiment is to click on the different flags on the Ryanair website and note whether the "headline" fare is inclusive or exclusive of taxes and charges. The general rule seems to be "exclusive, except when national consumer legislation insists on inclusive pricing".
So for example the French, Dutch and Danish flags all lead to inclusive headline prices.

Katana.flyer: there's nothing to stop an airline breaking out the charges that make up a total. However the issues are twofold:
1. showing an attractive headline price to sucker you in, and then adding a relatively large sum late in the booking process could be seen as misleading, no?
2. the "taxes and charges" are by no means all government-related. Indeed, not all the airport charges are even real charges. It is quite common practice for an airline to show (for example) 10 pounds airport charge per passenger, corresponding to the published standard airport tariff, and to charge each passenger this, even though the airline has a private commercial deal with the airport under which it pays (for example) only 5 pounds per passenger. Extra profit on the bottom line for the airline, along with the ability to "blame the airport" for the extra costs. (And don't even get me started on the profit margins for the airline inherent in "wheelchair charges" and "credit card fees".) So I think it's rather naive to suggest that exclusive-of-tax-and-charges fares are in some way fair and transparent.

A topical example of this is in the current Wizz Air vs SkyEurope handbags-at-dawn battle of press releases (about which I posted on this thread. SkyEurope in passing accuses Wizz Air of inflating the "taxes and charges" element of fares:
However, SkyEurope will always remain fair airline and brave to cut underperforming routes as the only listed and transparent low fare airline in Central Europe, which can be demonstrated also by not charging its passengers hidden surcharges:
Wizz Air's taxes & charges SkyEurope taxes & charges
Warsaw up to 102 PLN Warsaw 30 PLN
Katowice up to 116 PLN Krakow 48,90 PLN
Budapest up to up to 7410 HUF Budapest 3125 HUF
Best regards
C.
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Old 17th Feb 2006, 10:25
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Originally Posted by katana.flyer
Seeing the tax and charges as an extra line item in a bill gives transparency.
Well, then how does one explain a departure from one airport on 2 different carriers having completely different taxes? I agree with you Cyrano. A breakdown would be be the only way of trully achieving transperency.

Let's also not forget that airlines profit from not paying taxes and charges back for 'No Shows'. I think I recall reading somewhere that FR made as much as 40m this way last year!
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