UK NEWS
AIRLINES ATTACKED FOR HIDDEN EXTRAS
Jetting off on holiday is hampered by those hidden extras
By Jason Groves
LOW-COST airlines face a showdown over hidden charges that can nearly quadruple some advertised fares.
Competition watchdog the Office of Fair Trading warned budget carriers in February to end “misleading” advertising on their websites, where prices are often shown without compulsory taxes and charges.
But a survey by the Sunday Express found that many of the leading companies, such as Ryanair, Easyjet and Flybe, have taken little, if any, action.
The OFT, which has wide-ranging powers to enforce competition and consumer protection laws, said the airlines now had until May 8 to “bring themselves into line with what we feel is fair” or face the threat of legal action.
A spokesman said compulsory charges, such as taxes, airport fees, insurance and, in the case of Ryanair, a £2.50 “wheelchair levy”, should be included in the headline price advertised to customers.
The Association of British Travel Agents warned its members on Friday that they had just days to ensure all flights and holidays were advertised with all-inclusive prices.
Simon Bunce, the association’s head of legal services, warned that the market would degenerate into a free-for-all unless the OFT kept its pledge to take action against the budget airlines.
Mr Bunce said tour operators who stuck to the rules were suffering because their prices appeared higher than airlines that hid their extra charges.
He added: “We have made it very clear to the OFT that if we do not see significant progress we are going to be unable to prevent our members from competing.”
The airlines claim the system is fair because customers always know the final price before they pay. But consumer groups argue that it is difficult for customers to compare fares without going through a lengthy booking process with each airline.
An OFT spokesman said: “People may see an advertised price of £10 but when they go through the booking process they find there is another £10 for this and another £10 for that. By the time they have got that far they may just accept it, but if those supplements can’t be avoided, they should be included in the headline price.”
Simon Evans, chief executive of the Air Transport Users’ Council, which handles complaints about airlines, said many carriers used the hidden charges, which often varied widely, to boost their profits. As well as taxes and airport charges, levies can include extra charges for fuel, insurance, security, wheelchair provision and even contributions to airport development costs.
Mr Evans said: “They strip as much as they can out of the price to make it look as low as possible and then add a lot of other things you have to pay for. Of course they have to make money, but they should be transparent about the true cost from the outset.”
Complaints to the Air Transport Users’ Council have almost quadrupled in the last two years, mainly due to confusion about European Union regulations that appear to offer compensation for delays.
But Mr Evans said the organisation was also receiving a growing number of complaints about fees for processing airline gift vouchers. Customers can face hefty fixed fees or be forced to ring premium rate phone lines to make a booking using them. An Easyjet customer was allegedly charged £12.50 for using a £20 gift token.
Expedia, the US-based online travel agency, is facing a Parliamentary inquiry after charging British travellers up to ten times more than Americans to fly on UK domestic routes.
Edinburgh-Heathrow shuttle services with British Airways and Bmi are among those being sold at a fraction of the UK price in America. The flights were being sold in the US for as little as £22 return plus tax last week, compared to £264 in Britain.
Video 
AIRLINES TELL THE TRUTH? DON'T BE SILLY...
29.04.07, 4:54pm
Airlines have whole departments dreaming up new ways to get you to buy one of their tickets. Most of these involve not actually telling you how much it's goig to cost you.
The only new way they haven't actually thought of yet is to publish an all-inclusive ticket price with no last minute surcharges, add-ons, extras, etc., etc. That would be a first!!!
• Posted by: IanOlive • Report Comment
AIRLINE HIDDEN CHARGES.
29.04.07, 3:35pm
About five years ago I and some friends booked a last minute flight to Greece. We were told by the agent that the airline simply wanted to get rid of the last few seats on the flight and were therefore selling them very cheaply at £38. We where all delighted and booked our seats! When we received the final bill for each person, with hidden taxes and airport charges our flights worked out at £84 each.
What a rip off!
• Posted by: steveg • Report Comment
RIP OFF!
29.04.07, 11:00am
This is nothing new, airlines here have been ripping us off for years!
• Posted by: petefergie • Report Comment
To view all 'Have Your Say' comments, click this button...