Airlines Hate Fee Hikes Too

In Airlines by Lena YangLeave a Comment

Congress Budget

Another fare hike? Possibly…at least that's what members of Congress are proposing – an increase of $2.50 for the September 11th security fee to finance a budget deal and fund the Transportation Security Administration. Major supporters of the higher fee are Republicans, including House Budget Committee Chairman Paul Ryan. They argue that the fee hike is "an effort to raise funds…without raising taxes."

So, how are airlines reacting? Not so well. They've been trying to lower air fares with base prices and optional fees. However, with higher government imposed fees, overall ticket prices increase. This reduces sales. From the perspective of the carriers, "every $1 increase in ticket price reduces demand by as much as 2 percent."

So, what did they do in response to this proposal? U.S. airlines are using a barf bag stunt to rally passengers against the fee hike.

Each barf bag is printed with:

"Are high taxes on air travel making you sick? Fasten your seat belt because Washington wants you to pay even more."

Pretty creative. But are carriers genuinely concerned about their passengers paying more, or are they more concerned about themselves? Let us know your thoughts below!

To read more, visit the original article here.

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