New Rule Hiding Taxes or Increasing Airfare Transparency?

While savvy travelers know how to find cheap airplane tickets and cheap vacation packages, there is a fair amount of disagreement over the Department of Transportations (DOT) new rule which requires airlines to include all government taxes and airline fees in any airfare when it is first advertised or shown on a website.

Representative Tom Graves of Georgia announced on Monday, 1/30, that he will be introducing legislation to itemize the government taxes that are included in total ticket prices.

Graves concern is that DOT new airfare pricing rule hides the taxes included in airfares by lumping them in advertised pricing. He contends, If the American people cant see these costs clearly, I fear it will be easier for these fees and taxes to be raised without their knowledge.

The DOT said that its motive in adopting the new rule was to protect consumers from deceptive ads that make tickets look much cheaper than their real prices. Although only total prices may be featured prominently, the DOT noted that airlines could list taxes in smaller print if they so desire.

Allegiant, Southwest, and Spirit airlines are contesting the rule in federal court. Airlines argue that the rule is unconstitutional because it prevents them from highlighting the portion of taxes in each ticket. They contend the rule is unfair because taxes on other commodities, such as electronics, only show up on receipts not in advertising.

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