Nwa No Longer Absorbing Pfcs

whlinder

Veteran
Aug 20, 2002
1,352
0
IAD
www.playandmusic.com
NWA No Longer Absorbing PFCs, Raises Fares

JULY 13, 2005 -- Northwest Airlines this morning discontinued its policy of absorbing Passenger Facility Charges, government-imposed fees that vary by airport and range upward to $18 on a roundtrip ticket. In a memo to corporate and travel agency clients, the airline said it previously shielded passengers from these charges by marking down base fares "to remain price competitive with connecting hubs that do not have PFCs." In addition, Northwest raised fares by as much as $4.50 each way for itineraries that connect through airports that do not levy PFCs.

Specifically, the airline said global distribution systems as of 12:01 a.m. this morning no longer absorbed PFCs of $4.50 on Northwest tickets for itineraries connecting through hubs in Detroit and Minneapolis.

"Northwest has also increased fares on many itineraries traveling through airports where PFCs are less than $4.50," the airline said in the agency memo. For example, airfares for itineraries connecting through Houston and Memphis--where PFCs are not levied--were raised $4.50 each way, while those connecting through Milwaukee and Newark--where PFCs of $3.00 are in place--were raised $1.50 each way. "Consequently, the total price is the same regardless of whether the connection is through Detroit, Minneapolis/St. Paul or Memphis, or on codeshare itineraries via Newark, Cleveland or Houston."

See link

This is one of the more 'creative' pricing schemes I have seen. Charging an extra surcharge to passengers who connect through an airport without PFCs? New to me...
 

tadjr

Veteran
Aug 19, 2002
3,511
100
TPA
www.airlineforums.com
I think the airlines need to get out of the government tax collection business anyway. They need to do like several Asian countries do and have a machine in the lobby for you to pay your airport taxes and show the coupon as you leave or like many of the islands do and you give them a $20 as you walk out the door.
This way the consumer knows the true value of their ticket to the airline vs the total price of $XXX that includes all of the government taxes that they think goes to the airline.
 

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