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The real sticker-price of air travel

By Jonathan J. Ariel - posted Thursday, 24 January 2008


For instance, fly Sydney to Hong Kong for $1,573. (Where the price includes $270 fuel surcharge; $65 Macquarie Airport Charges; $50 Australian Government taxes; $29 HKG Airport charges, $31 PRC Government tax and $28 Flight Centre “ticketing fee”).

Passengers have every right to know exactly how much they will have to pay when they consider the purchase of a ticket. They also have a right to know if the extra charges are legitimately levied: for example is the Hong Kong tax as charged by the agent indeed correct? And shouldn’t Flight Centre’s “ticketing fee” be added to the ticket’s sticker-price rather than be added to the total for taxes? And if it is added to the taxes shouldn’t it be, at the very least, disclosed to the customer in advance? My quotes from Flight Centre make no mention whatsoever of this $28 “ticketing fee”. And in my case I was issued with a paperless e-ticket!.

Truth in advertising shouldn’t be something the public has to fight for. Every single impost that will be demanded of the passenger must be detailed clearly and accurately.

Advertisement

Too often, a great value airfare splashed in a glossy advertisement turns out to be either the same price or even higher than a competitor's price once undisclosed taxes and fees are added. Ticket prices, no matter the destination or the type of seat offered, should be clear, straightforward and all-inclusive.

Just like the next Liberal Prime Minister, Malcolm Turnbull.

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About the Author

Jonathan J. Ariel is an economist and financial analyst. He holds a MBA from the Australian Graduate School of Management. He can be contacted at jonathan@chinamail.com.

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