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Spirit's latest fee!

1/31/2012

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_ Spirit Airlines has announced a new $2 fee on every ticket they sell. This is in response to the latest regulation from the United States Department of Transportation requiring all airlines to allow consumers to cancel a ticket purchase within 24 hours without penalty.


Spirit has instituted this new fee, complaining that this “misguided and expensive regulation” will cut deeply into their bottom line. “This prevents us from selling these seats to someone who definitively wants to book their reservation and leads to seats not being filled,” says Spirit CEO Ben Baldanza. “The consequence is that we must spread costs over fewer customers, thus raising the cost for all passengers.”

It’s actually kinda funny when you think about it.

Spirit WILL need those extra two dollars per ticket because of this new regulation, but not because they have to hold seats for 24 hours that may not actually be sold. That would only be a factor on flights running at 100% occupancy, and even on those, Spirit routinely oversells their seats.

Here, I believe, is the real reason this regulation will hurt Spirit Airlines:

For years, Spirit Airlines has thrived on a strategy I call “Too Bad, We Have Your Money Now.”

Did you buy a Spirit ticket on Travelocity for one set price, then found out a few hours later that Spirit’s additional fees not mentioned on Travelocity would add hundreds of dollars to your trip? Too bad, we have your money now! No refunds!

Did you buy a ticket on Spirit’s site to fly on a Sunday and then realize moments later the site somehow assigned you a ticket to fly on Monday? Too bad, we have your money now! Any change will cost you $130.

This new regulation is simply the DOT doing its job: protecting consumers from predatory practices. And it's about time. A company that isn’t in the business of taking advantage of consumers shouldn’t have any issue with giving a customer a grace period for a full refund. If Mr. Baldanza wants the DOT to leave his airline alone, he would be well advised to end Spirit’s policies that regularly take advantage of consumers.

 

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Senator Boxer shocked by Spirit's failure to tell the truth.

1/26/2012

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_Earlier this week, Spirit Airlines created the webpage KeepMyFaresLow.org and sent a blast email accusing the U.S. Department of Transportation of forcing airlines to "hide the government's taxes and fees in your fares." U.S. Transportation Secretary Ray LaHood immediately responded with a statement: "Airline passengers have rights, and they should be able to expect fair and reasonable treatment when booking a trip and when they fly."

Today California Senator Barbra Boxer responded with a letter to Spirit CEO Ben Baldanza:

                Dear Mr. Baldanza:

                I write to you today regarding my concern with Spirit Airlines' deliberate attempt to deceive
                the flying public about a new Department of Transportation (DOT) rule that will improve the
                transparency of airfares for consumers. I have been shocked by the failure of your airline to
                tell the truth in an email sent to your customers earlier this week as well as warnings posted
                on Spirit.com that read, "New government regulations require us to HIDE taxes in your fares."
                Nothing could be further from the truth.

                What the rule says is that you have to tell your customers the full cost of a ticket. It prohibits
                Spirit or any other airline from advertising fares "that exclude taxes, fees or other charges
                since the major impact of such presentations is to confuse and deceive consumers."

                And despite Spirit's claim that the airline must now hide relevant information, the rule "allows
                carriers to advise the public in their fare solicitations about government taxes and fees..."

                Today's consumers are faced with many options when planning air travel and being able to
                compare the full price before purchase is both necessary and fair. Your recent statement that
                "the better form of transparency is to break out costs so that consumers know exactly what
                they are buying" is exactly what this new DOT rule will help do.

                I urge you to immediately send a clarifying email to your customers and remove the misleading
                information from your website.

                Thank you for your attention on this important consumer issue.

                Sincerely,
                Barbara Boxer

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