Latest DOT fines over disclosure, a drop in the bucket

In theory the Department of Transportation (DOT) fines airlines to keep them from misbehaving. Most recently, the DOT caught United Airlines leaving a 7 1/2 percent federal excise tax out of some of their fare quotes for two days.

According to United it was a simple programming error that they corrected, nonetheless they were fined $37,500. This amount was actually the balance of a penalty that was partially deferred last August for other fare advertising violations. (The airline was put on probation for half the fine.)

Leaving aside the triviality of the fine, I have to wonder, is the DOT swatting flies while the airlines continue with greater fare mischief.

Yes, United should have their programmers be especially careful, but a few percent tax is relatively trivial compared to the other fare games airlines pay on a regular bases. Taxes may be government mandated but fuel surcharges and peak-day surcharges are not.

And whether or not they show up in the fine print before you ask for a final price, they are misleading. Especially, when say, United is charging a $27.90 one-way surcharge between San Diego and San Francisco on some days in March and the fare is only $62.

Or, when the base price on a super-saver ticket from Dulles to London is $216 round-trip, and the fuel surcharge is $242 round-trip. (Most cruise lines got rid of their fuel surcharges when oil dropped below $70 a barrel.)

In the end, it’s the final price that matters most. Many of these fares are still pretty reasonably priced overall. However, the totals are a far cry from the incredible prices shown in large print in the advertisements.

Airlines may be adhering to the letter of the law by noting (in fine print that is difficult to read for young eyes, and nearly impossible for older ones) that there are additional fees and taxes. But if the intent is not to mislead customers, I would argue that the DOT is not doing “a heckuva job.”

photo by matt hintsa/flickr.com/creative commons

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