Government Seeks to uncover the hidden costs
The Federal Government may be introducing new laws that will make air fares more transparent to the buyer, in order to show the full price of products including all fees and taxes. The Government is considering an amendment of the Trade Practices Act which will aim to address the concerns of consumers, and not add more administrative costs to businesses.
According to news.com.au, Assistant Treasurer Chris Bowen has said that the Government has become concerned over both retailers and airlines revealing extra costs to customers only after they have committed to a purchase. The Government has claimed that it is airlines and telecommunication companies who are guilty of advertising an initial price and then adding on extra charges closer to the time of purchase.
However, Qantas’ executive director John Borghetti has come forward to claim that fuel levies have made ticket pricing more transparent.
“The reason for having a surcharge rather than building this additional cost into the base fare is so we can reduce or remove it if fuel prices go down,” he said for News.com.au.
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This entry was posted on Tuesday, February 5th, 2008 at 12:23 pm and is filed under Industry News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
