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Old Dec 10, 2010 | 7:00 am
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jackal
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Just wanted to make an aside here, as loss-of-use fees are commonly disparaged on FlyerTalk:

Originally Posted by PhillyInvestor
"Alabama law does provide the collection of loss of use and does not specify the requirement of 100% utilization ... Our loss of use is determined as follows. Our utilization for November 2010 was at 56.2%. The average daily vehicle revenue was $39.74. The car was in the repair facility for five days ... $39.74 x 5 x .562 = $111.67."
IMHO, it would be fair for loss of use to equal to the rate the car was rented on.

After all, you are, in effect, keeping the car on rent for five extra days.

Rental companies don't give you a break when you rent a car simply because their utilization wasn't 100%. Could you imagine calling up a rental agency sitting at 10% utilization and expecting them to only charge you 10% of the normal rate because "the car would otherwise be sitting"?

So, the fact they're only charging you $22.33 per day for the five extra days you rented the car is pretty fair--most likely a good bit less than the original reservation was for.

That said, I realize you didn't bring up a dispute regarding the loss-of-use fees in this thread, so I'm not intending to argue with you. I'm simply making this point on a public discussion thread.

I'm also extremely surprised they included such detailed figures in their letter to you. Normally, those types of figures--fleet utilization levels and daily dollar average--are tightly-held numbers, as knowledge by competitors could give them a competitive advantage.
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