The media was full of stories last week about the Department of Transportation’s (DOT) requirement that advertised airfares include all taxes and fees, which goes into effect Jan. 26. But most stories missed the detail that promoting each-way fares “based on a required round-trip purchase” will still be allowed.
This means that a $220 fare you see advertised may not be the actual final price, after all — despite DOT’s much trumpeted pursuit of transparency and consumer protection. In its ruling last April that finalized the new requirements, it only demanded that the fine print be more prominent.
“The department is codifying existing enforcement policy, allowing sellers of air transportation to advertise an each-way price that is contingent on a round-trip ticket purchase, so long as the round-trip purchase requirement is clearly and conspicuously disclosed in a location that is prominent and proximate to the advertised fare,” the final ruling said.
I suppose it’s easy enough to double $220 and quickly arrive at the $440 round-trip price, if there is a notation next to the fare that a round trip is mandatory. But at the same time, isn’t it even easier to just put $440 instead of half that amount plus the fine print?
DOT said that its ruling “allows sellers of air transportation to be flexible in the way they advertise round-trip fares while still requiring all pertinent disclosures to consumers.”
Who are we kidding? The only reason airlines use this marketing ploy is to mislead and manipulate customers. They can easily prove me wrong by ending the practice.
“While the department understands that some consumers would prefer the full round-trip price to be displayed, the department has not found that the current regime has led to consumer confusion or deception, and it does permit certain types of advertising that are beneficial,” DOT said.
I’ve written about this issue several times, and it’s hard for me to see anything “beneficial” in false each-way fare advertising — for consumers, that is. I have no trouble seeing how this practice benefits airlines. As I’ve pointed out before, many airlines do advertise actual round-trip fares.
There is nothing wrong, of course, with promoting one-way fares that can indeed be purchased as such, without the round-trip requirement.
DOT has taken important steps to address false fare advertising — including fines on carriers that break the rules — but there is much more to be desired if it’s really serious about protecting consumers.
On a somewhat different note, the new rules also increase the denied-boarding compensation airlines are required to offer passengers who are left behind because their flight was oversold. Carriers usually try to entice volunteers with travel vouchers, but if that fails, they must give the affected customers cash or a check.
If such travelers’ new flights delay arrival at their final destination between 1 and 2 hours for domestic flights and between 1 and 4 hours for international ones, the compensation must be 200 percent of the one-way fare or $650, whichever is lower. For longer delays, the numbers go up to 400 percent of the fare or $1,300.
Airlines are exempt from these rules if the denied boarding is due to substituting the scheduled aircraft with a smaller plane, or if the plane has fewer than 30 seats. The rules don’t apply to international flights inbound to the United States, though the European Commission has even stricter rules for flights originating in the European Union.
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Continue reading about DOT keeps false ‘each-way’ airfare ads
If anyone had any doubts that putting together the European Union’s new diplomatic service would be an utterly messy task, that is now an undisputed fact. A high-profile ambassadorial list released this week provoked publicly aired quarrels rather uncharacteristic of diplomats, and it raised questions about the future effectiveness of the EU corps.
The long-anticipated list, unveiled by EU foreign policy chief Catherine Ashton in Brussels, was apparently based not on merit, but on what Polish Foreign Minister Radoslaw Sikorski called “esoteric considerations.”
What are those? A quick look at the list shows that the most important ambassadorships are going to diplomats from the oldest EU members in the West — China was given to the Germans, Japan to the Austrians and South Africa to the Dutch. What about less important but plush posts? Of those, the Spanish got Argentina and Singapore went to Luxembourg.
So the considerations Sikorski referred to had more to do with where the diplomats come from, rather than what they can accomplish in their respective positions. “Appointments should be made on merit,” he said. “We in the new member-countries have people who speak the languages of the former Soviet Union, we have expertise there.”
Four posts out of 29 went to diplomats from Central and Eastern Europe. Despite Sikorski’s protest, Poland did better than any other former communist country, winning South Korea and Jordan. The Bulgarians got Georgia, and Afghanistan had gone to the Lithuanians earlier.
“I have appointed the best people for the right jobs,” said Ashton, whose official title is EU high representative for foreign affairs and security policy, as well as vice president of the European Commission, the EU’s executive body. She was also criticized for choosing only eight women.
“We have made a start to address the important issues of geographical and gender balance,” Ashton said in an apparent admission that those problems are not yet resolved.
The nominees, who have to be approved by the European Parliament, may be the “best people” for the jobs from their country, but it’s questionable whether they are the best from any EU state. It’s not clear, either, that the top criteria during the selection process were actually skills, qualifications and experience.
“We are deeply disappointed,” said Slovenian Foreign Minister Samuel Zbogar. “We expected more transparent decisions and that geographic balance would be taken into account, in particular for those states, like Slovenia, which have no presence at all in the EU’s foreign institutions.”
Creating the European External Action Service — the diplomatic corps’ official name — is a daunting task, and Ashton has an impossible job. She won’t be able to please everyone even if she really wants to. But more consultation with Eastern European members would go a long way.
If there is hostility among diplomats from different countries even before the foreign service’s launch, which is expected in December, it will likely affect trust and their ability to work together at the dozens of missions they are setting up around the world.
Here is the full list released by Ashton’s office on Wednesday:
China — Markus Ederer (Germany)
Japan — Hans Dietmar Schweisgut (Austria)
South Africa — Roeland van de Geer (Netherlands)
Afghanistan — Vygaudas Usackas (Lithuania)
Albania — Ettore Sequi (Italy)
Argentina — Alfonso Diez Torres (Spain)
Macedonia — Peter Sorensen (Denmark)
Bangladesh — William Hanna (Ireland)
Jordan — Joanna Wronecka (Poland)
Uganda — Roberto Ridolfi (Italy)
Senegal — Dominique Dellicour (Belgium)
Angola — Javier Puyol Pinuela (Spain)
Botswana — Gerard McGovern (Ireland)
Burundi — Stephane de Loecker (Belgium)
South Korea — Tomasz Kozlowski (Poland)
Gabon — Cristina Martins Barreira (Portugal)
Georgia — Philip Dimitrov (Bulgaria)
Guinea-Bissau — Joaquin Gonzalez-Ducay (Spain)
Haiti — Lut Fabert-Goossens (Luxembourg)
Lebanon — Angelina Eichhorst (Netherlands)
Mozambique — Paul Malin (Ireland)
Namibia — Raúl Fuentes Milani (Spain)
Pakistan — Lars-Gunnar Wigemark (Sweden)
Philippines — Guy Ledoux (France)
Singapore — Marc Ungeheuer (Luxembourg)
Chad — Helene Cave (France)
Zambia — Gilles Hervio (France)
China (Deputy) — Carmen Cano de Lasala (Spain)
Papua New Guinea — Martin Dihm (Germany)
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American carriers can relax — their freedom to fly anywhere in the European Union is no longer threatened by Washington’s refusal to allow foreign control of U.S. airlines. That was the biggest news from last week’s agreement to expand the 2007 U.S.-EU Open Skies accord.
When the deal was first negotiated, carriers from both sides of the Atlantic were permitted to fly between any two cities without the previous government restrictions. However, those rights could have been lost next year, unless European companies could own controlling shares in U.S. airlines. Although that hasn’t happened, the EU agreed on Thursday to extend Open Skies indefinitely.
“It’s a big win for us,” said John R. Byerly, the top U.S. negotiator and deputy assistant secretary of state for transportation affairs. “There was a cloud hanging over the stability in the trans-Atlantic market, and now it’s gone. It was not an easy agreement. It took us eight rounds, beginning in the late spring of 2008″…
Continue reading about U.S. has ‘no desire’ to ease airline ownership rules
