Skip to content
Search AI Powered

Latest Stories

fastlane

How do you spell transparent?

Note to air travelers: The proposed Transparent Airfares Act of 2014 is anything but.

Merriam-Webster's Dictionary defines transparent as "honest and open; not secretive; free from pretense and deceit." Keep this in mind as you consider the following story about events taking place in the air transport world.

Since Jan. 26, 2012, the U.S. Department of Transportation (DOT) has required airlines to post total airfares on their websites and in their promotional materials. This has been something of a double-edged sword for the consumer. On the one hand, this lets prospective passengers know exactly what they will be paying for a ticket on a given airline between two points. All fees are included. On the other hand, the precise amounts of the government fees, taxes, and other charges are hidden. Still, to the average traveler, I believe this is the preferable method of pricing. If you are taking the family to Disney World, you just want to know how much it's going to cost you - total. It is something akin to buying gas for your car. While I may have some academic interest in the amount of the fuel taxes, I really only care about what a particular station is charging per gallon.


Fast forward to March 6, 2014. On that day, the Transparent Airfares Act of 2014 was introduced in Congress (H.R 4156). This bill "declares that it shall not be an unfair or deceptive practice for an air carrier or covered entity to state the base airfare in an advertisement or solicitation for passenger air transportation if it clearly and separately discloses (1) the government-imposed taxes and fees for the air transportation and its total cost." In other words, if this bill becomes law, an airline can advertise the base fare, then when the time to pay arrives, add various taxes and fees.

Using a current example, if I want to travel from Memphis, Tenn., to Jacksonville, Fla., on June 30, returning on July 2, the advertised airfare is $740.50, including applicable taxes and fees. Under the provisions of H.R. 4156, Delta could advertise the fare as $652.09, and when I'm ready to confirm the purchase, I will learn there are several "gotchas."

Since a roundtrip from Memphis to Jacksonville requires an aircraft change in Atlanta, the trip will involve four segments and incur 12 different taxes and fees. First, there is the federal tax of $48.91. Then, there is the Sept. 11th Security Fee. There are four of these, at $2.50 each. Each segment has a Flight Segment Tax of $4, and finally, there are three U.S. Passenger Facility Charges of $4.50, for a total of $88.41 or almost 14 percent, to be added to the base fare. This, of course, does not include charges for checked baggage, room for both legs, and moisturized turkey sandwiches. And heaven help you if you have a last-minute change in your plans.

Airlines have found that the road to profitability is through their various fees, and under the proposed pricing scheme, comparisons in trip costs will be much more difficult than they are today. A quick look at the website of one of the more fee-dependent airlines, Spirit, reveals that a trip from Dallas to Miami has a base fare of $117, but adding such nonoptional fees as those for fuel costs, carry-on baggage, and other services results in a total price of $188, or 60 percent more than the base fare. Spirit even has a charge for "unintended consequences of DOT regulations."

I will leave it to the reader to decide which method is "free from pretense and deceit."

The Latest

More Stories

trucks in a freight lot

Startup gets $16 million to fund its AI tool for freight brokers

The San Francisco tech startup Vooma has raised $16 million in venture funding for its artificial intelligence (AI) platform designed for freight brokers and carriers, the company said today.

The backing came from a $13 million boost in “series A” funding led by Craft Ventures, which followed an earlier seed round of $3.6 million led by Index Ventures with participation from angel investors including founders and executives from major logistics and technology companies such as Motive, Project44, Ryder, and Uber Freight.

Keep ReadingShow less

Featured

ship for carrying wind turbine blades

Concordia Damen launches next-gen offshore wind vessels

The Dutch ship building company Concordia Damen has worked with four partner firms to build two specialized vessels that will serve the offshore wind industry by transporting large, and ever growing, wind turbine components, the company said today.

The first ship, Rotra Horizon, launched yesterday at Jiangsu Zhenjiang Shipyard, and its sister ship, Rotra Futura, is expected to be delivered to client Amasus in 2025. The project involved a five-way collaboration between Concordia Damen and Amasus, deugro Danmark, Siemens Gamesa, and DEKC Maritime.

Keep ReadingShow less
map of Roadrunner freight routes

Roadrunner CEO and partner buy ownership stake in company

The CEO of less than truckload (LTL) trucking company Roadrunner Freight has joined with a partner to buy out a majority ownership interest in the Chicago-based company from its private equity owners.

Roadrunner CEO Chris Jamroz made the move through Prospero Staff Capital, a private equity vehicle that he co-leads with the investor Ted Kellner, buying the stake from Elliott Investment Management L.P.

Keep ReadingShow less
chart of port of oakland container traffic

Port of Oakland import volume approaches pre-pandemic level

The Port of Oakland’s container volume continued its growth in the fourth quarter, as total container volume rose 10% over the same period in 2023, and loaded imports grew for the 12th straight month, approaching pre-pandemic levels.

Specifically, loaded import volume rose 11.2% in October 2024, compared to October 2023, as port operators processed 81,498 TEUs (twenty-foot containers), versus 73,281 TEUs in 2023, the port said today.

Keep ReadingShow less
office workers using GenAI

Companies feel growing pressure to invest in GenAI

In a rush to remain competitive, companies are seeking new ways to apply generative AI, expanding it from typical text-based applications to new uses in images, audio, video, and data, according to a report from the research and advisory firm Information Services Group (ISG).

A growing number of organizations are identifying ways to use GenAI to streamline their operations and accelerate innovation, using that new automation and efficiency to cut costs, carry out tasks faster and more accurately, and foster the creation of new products and services for additional revenue streams. That was the conclusion from ISG’s “2024 ISG Provider Lens global Generative AI Services” report.

Keep ReadingShow less