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Airlines Get Billions From Unbundled Services

Hugh Pickens writes "In hearings before Congress, the Government Accountability Office (GAO) said that airlines reported revenue of $7.9 billion from baggage fees and reservation change and cancellation fees in calendar years 2008 and 2009 — fees on unbundled services that once were considered part of the ticket price. 'We believe that the proliferation of these fees and the manner in which they are presented to the traveling public can be confusing and in some cases misleading,' says Robert Rivkin, the Department of Transportation's general counsel. Published fares used by consumers to choose flights don't 'clearly represent the cost of travel when these services are added.' However, Spirit Airlines President and CEO Ben Baldanza defended the practice of unbundling, saying it allows his airline to charge lower fares (PDF) and allows the customers the choice to purchase the services or not."

7 of 432 comments (clear)

  1. Re:2+2=5 by PolygamousRanchKid+ · · Score: 2, Funny

    Banks, Airlines, Energy companies, Grocery stores, Gas stations - when does it end?

    Girl Scout Cookies . . . ?

    --
    Schroedinger's Brexit: The UK is both in and out of the EU at the same time!
  2. Re:So who's to the rescue? by Anonymous Coward · · Score: 2, Funny

    With our brilliant free market capitalism in place, a competitor should be here to the rescue to innovate and beat the crap out of these guys who don't take care of their customers [...] Any minute now. Any minute!!!

    You're not thinking libertarian enough. We must allow the public to carry firearms through airports again and to exercise their second amendment right to defend themselves against what the common law considers theft. When companies find it too expensive to hire and replace drones to collect these fees, they will stop charging them.

  3. Re:I like it by PopeRatzo · · Score: 2, Funny

    I only went to Vegas again because it was my girlfriends first time.

    My girlfriend's first time was in the backseat of a car.

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    You are welcome on my lawn.
  4. Re:Economics has the answer by owski · · Score: 2, Funny

    We need more regulation to lower these, what do you call them, "barriers to entry." That should fix the problem.

  5. Re:Bigotry in any form is an ugly thing by chill · · Score: 2, Funny

    ...but it still comes off as pretty stupid on a site filled with otherwise intelligent people.

    I was with you until right there. Are you referring to Slashdot, or did I miss something? Honestly?

    --
    Learning HOW to think is more important than learning WHAT to think.
  6. Re:I like it by TheMeuge · · Score: 4, Funny

    Generally speaking... Start earlier, plan instead of react, gather your obligations and commitments timewise... If you can't do this, perhaps it's worth re-considering how you've arranged your life. Very few folks on slashdot are short of mental resources. If your life sucks, perhaps a reboot is called for.

    So if you can't take six weeks off at once your life sucks?

    Boy, you must be a schoolteacher.

  7. Re:I like it by Tetsujin · · Score: 2, Funny

    Excuse me, a bank loan to cross the Atlantic???

    Hey, it worked for Chris Columbus.

    Was this when he was making the Harry Potter films?

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    Bow-ties are cool.