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Writing Assignment 2 - Essay Example

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The government is in the process of making it mandatory on airline carriers to fully and completely disclose airfare. This is the result of increased distress of airlines passengers who feel confused and cheated when the prices of air tickets turn out to be far more than they ‘bargained’ for, after including taxes, baggage and food fees, reservation change penalties, seating charges, etc. …
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Writing Assignment 2
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Writing Assignment 2

Download file to see previous pages... The airline industry, post-deregulation in the late 70s, is free to set prices, which are now determined by the market forces. Airline tickets have never been cheaper, thanks to increased price transparency through the internet. Air travel is easily available to the general public as its demand for affordable prices has been met by carriers, who have unique cost structures in place for scale economies. For price setting, airlines are able to predict (through trend analysis) which time of year most people would prefer to fly. With demand high, the price is also set high. When a particular airline observes that ticket sales are slower, it will cut down on the ticket price. These changing prices obviously frustrate consumers and have prompted the government to establish some sort of consumer protection. According to the author, the government is requiring airlines to include all ‘potential’ fees, along with the actual ticket price, on every advert. The customer has to be apprised accurately of the baggage fees. Air carriers must now also include all government taxes in the advertised price. The government has also imposed huge penalties on carriers for extended tarmac delays. ...Download file to see next pagesRead More
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