Jim,
That is exactly why I said that the airlines should go about it different, and spell out to the customer what surcharges will be charged. They don't do this. I agree that it is an attempt to post a fare, and hide the surcharge, until the last second, when most people have already hit "purchase". With that said, I don't disagree with charging a fuel surcharge, just the way it is done.
I recently read an article that described a lawsuite against Wal-Mart, in which it has been stated that prices often ring up higher, at the register, than is posted on shelf. I still stand by my claim that many companies practice some deceptiveness, it just isn't always so obvious, and doesn't effect people's lives, in most cases, to the extent that the airlines can.
Air fare is very complex, and it isn't as simply as raising fares. A per fuel surcharges. When the airlines first started with fuel surcharges, all of the airlines charged, but Continental. Because Continental didn't, the others stopped, until, over the summer, when fuel was at it's highest. What one airline does, the others follow, and if one chooses not to follow, usually the others back down, soon after.
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Originally Posted by jimworcs
Chris, I don't really understand your logic. If as you say, airlines have tried raising their fares and if they don't all do it, it doesn't work.. how is this helped by an airline raising it's fuel surcharge if they don't all do it. The truth is, most pricing by airlines these days are dynamic and rise and fall according to a number of highly complex factors, including costs, demand, competitive issues, etc... so I can't see how the surcharge is anything other than an attempt by the airline to post a "fake" price, to which the surcharge is added. Can you imagine the chaos if all businesses adopted the ridiculous pricing structure of the airlines. As you shop in the supermarket, you get to the checkout with your six muffins for a $1 offer. At the check out the sales clerk advises you that there is a $1 fuel surcharge, a 50 cent "security" charge to ensure the muffins are safe and 25 cent charge for using your card to pay for it. That will be $2.75 please. It is ridiculous and makes no sense. Supermarkets have to pay huge haulage fees and when the price of gas goes up it goes up for them too. The also face huge competition and their competitors don't always raise their prices at the same time. That is the free market, and I cannot understand why the airlines feel that they are not subject to it. Can you tell me how many supermarket chains have gone into chapter 11 repeatedly, and then emerged unscathed having unloaded tons of debt?
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