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."
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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...
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...
