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Air Fares: All-Inclusive Prices
added: 2008-06-24

All air fares, published in any form and addressed to the public, must include all taxes, fees and charges added to the basic ticket price and known at the time of publication, says a deal with the Council approved by the Transport Committee on Tuesday. Like other consumers, air passengers have a right to clear and comprehensive information on the price they actually have to pay, says the text, which will be debated and put to a plenary vote in July.

The transparency recommendation by EP rapporteur Arunas Degutis (ALDE, LT), for the second reading was adopted in committee this morning without amendments, as the substance of Parliament's first reading amendments had been taken up by Transport Ministers in their common position. The key issue for Parliament is the quality of information for air passengers.

The price you actually have to pay

Booking via internet, often the only possibility with low-cost air carriers, has attracted particular attention. All carriers will have to provide the general public with comprehensive information, "in any form, including on the internet," on their air fares. Air fares that are "addressed directly to the travelling public" have to include all applicable taxes, non-avoidable charges, surcharges and fees known at the time of publication.

At least the following must be specified: air fare or air rate, taxes, airport charges and other charges, surcharges or fees, such as those related to security or fuel. Optional price supplements must be communicated in a clear, transparent and unambiguous way at the start of any booking process and their acceptance by the consumer must be on an "opt-in basis".

Security taxes and charges

With security charges on the rise, MEPs successfully argued that the consumer has a right to know how high these costs are, and what they are used for. Where airport or on-board security costs are included in the price of an air ticket, these costs must therefore be shown separately on the ticket or otherwise indicated to the passenger. Security taxes and charges, whether levied by the Member States or by air carriers or other entities, must be transparent and be used exclusively to meet airport or onboard aircraft security costs.

Social legislation

It is agreed that Member States must now ensure the proper application of Community and national social legislation to employees of a Community carrier operating air services from an operational base outside the territory of the Member State where that Community air carrier has its principal place of business. In the past, the use of bases outside the country of origin has made it difficult to determine which territory's employment laws apply to crews.

Content of the draft regulation

The agreed draft regulation would update, modify and in some instances tighten up existing rules, in the light of experience acquired and the current circumstances of the aviation sector. It aims to establish a level playing field for leasing aircraft and to clarify who has administrative responsibility for revoking or suspending licences.


Source: European Parliament

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