willygee
19-12-04, 10:17 PM
Jetstar's fare a $19 flight of fancy
When is a $19 airfare not a $19 airfare? When it comes attached to $30 in fees, taxes and surcharges - some imposed by the airline itself.
Discount airline Jetstar drew criticism yesterday from consumer groups and rival Virgin Blue for adopting a price strategy that separates basic fares from taxes and surcharges.
Following a request two years ago from the Australian Competition and Consumer Commission, Australia's domestic airlines have been using all-inclusive prices - charging a single amount for flights, including all taxes and surcharges.
But when Qantas offshoot Jetstar launched a wave of holiday discounts on Thursday, it offered super-low fares that did not include the extra charges.
For example, Jetstar's Melbourne (Avalon) to Sydney flight was advertised at $19 plus taxes and surcharges of $30. Under the previous system the flight would have been advertised as $49.
Rival Virgin Blue immediately followed suit, but said it was a regrettable decision that was detrimental to consumers.
"We are being forced to take this road reluctantly and have written today to both the ACCC and the Australian Consumers Association to express our concern," Virgin Blue CEO Brett Godfrey said.
While some of the $30 in additional charges on the Avalon-Sydney flight are government taxes and airport landing fees, $12 of it is the airline's fuel levy.
Norm Crothers, deputy CEO of the Australian Consumers Association, said the airlines were letting down travellers by not revealing the full cost of their flights.
Jetstar spokesman Simon Westaway denied the change misled customers. "Jetstar is being transparent with its prices," he said.
SOURCE (http://www.theage.com.au/news/National/Jetstars-fare-a-19-flight-of-fancy/2004/12/17/1102787273751.html)
When is a $19 airfare not a $19 airfare? When it comes attached to $30 in fees, taxes and surcharges - some imposed by the airline itself.
Discount airline Jetstar drew criticism yesterday from consumer groups and rival Virgin Blue for adopting a price strategy that separates basic fares from taxes and surcharges.
Following a request two years ago from the Australian Competition and Consumer Commission, Australia's domestic airlines have been using all-inclusive prices - charging a single amount for flights, including all taxes and surcharges.
But when Qantas offshoot Jetstar launched a wave of holiday discounts on Thursday, it offered super-low fares that did not include the extra charges.
For example, Jetstar's Melbourne (Avalon) to Sydney flight was advertised at $19 plus taxes and surcharges of $30. Under the previous system the flight would have been advertised as $49.
Rival Virgin Blue immediately followed suit, but said it was a regrettable decision that was detrimental to consumers.
"We are being forced to take this road reluctantly and have written today to both the ACCC and the Australian Consumers Association to express our concern," Virgin Blue CEO Brett Godfrey said.
While some of the $30 in additional charges on the Avalon-Sydney flight are government taxes and airport landing fees, $12 of it is the airline's fuel levy.
Norm Crothers, deputy CEO of the Australian Consumers Association, said the airlines were letting down travellers by not revealing the full cost of their flights.
Jetstar spokesman Simon Westaway denied the change misled customers. "Jetstar is being transparent with its prices," he said.
SOURCE (http://www.theage.com.au/news/National/Jetstars-fare-a-19-flight-of-fancy/2004/12/17/1102787273751.html)