FlyerTalk Forums - View Single Post - Fuel Surcharges - a scam?
View Single Post
Old Sep 10, 2000 | 12:41 am
  #12  
gilpin
 
Join Date: Aug 2000
Posts: 1,739
I'm impressed that you guys have something of a handle on fuel costs, at least hypothetically. Given that the fuel the airline is using today may have been purchased a year ago (or not) it's all speculation of course.

The manner in which this is being done is what I object to. All business change prices when market conditions warrant. But no other business could get away with this scheme. Imagine this fictional scenario:

The price of wheat has risen drastically in the past year. Consumers are upset with the poor quality and high price of bread. Instead of raising the price of bread all companies institute a $1 wheat surcharge. The prices on the shelves stay the same, but at checkout an extra dollar is charged on any wheat item, wheather a 10 pound loaf or a single dinner roll.

Of course this could never happen because it would be illegal. First an industry-wide scheme of this sort IPMLIES price fixing, and second the price listed on the shelf couldn't be different than the price actually charged.

How do the airlines get away with it? They come under the jurisdiction of the DOT and not the FTC! That's why we don't see newspaper ads stating:

BREAD - ONLY $1!*

*(per 1/2 loaf - full loaf purchase required)

[This message has been edited by gilpin (edited 09-10-2000).]

[This message has been edited by gilpin (edited 09-10-2000).]
gilpin is offline