Lobbying by Virgin Blue and consumer groups has convinced the Australian government to clarify advertising laws to require prominent display of a price that includes all taxes and surcharges.
Australian airlines switched to component pricing last year – relegating taxes and surcharges to the fine print – after several court decisions raised doubts about the law. Virgin Blue and others lobbied the consumer and competition commission for a return to all-inclusive pricing, arguing that net fares make it harder for consumers to compare prices. The commission and Australia's treasurer finally agreed.
"Travellers shouldn't have to get out their binoculars to read the fine print and calculators to work out the total price of their flight," argues Virgin Blue's chief executive Brett Godfrey.
Qantas executive general manager John Borghetti says Qantas favours all-inclusive pricing, but abandoned it last year because other international carriers and some travel agents failed to adopt it. He hopes the new law will ensure that everyone in the industry complies.
Source: Airline Business