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  • Scribecast: Spirit Airlines CEO Fights New Federal Regulations

    The U.S. Department of Transportation imposed new regulations on airlines Jan. 24 that were supposed to benefit consumers. The rules require all government taxes and fees to be included in advertised fares and allow passengers to withhold payment for 24 hours after making a reservation, if it’s one week before the flight’s departure.

    Some consumers might be jumping for joy that the nanny state is imposing new rules on airlines. But for low-cost carries like Spirit Airlines, Southwest Airlines and Allegiant Air, it’s grounds for a lawsuit against the federal government.

    This week on Scribecast, we spoke to Spirit Airlines President and CEO Ben Baldanza about the airline’s opposition to the new federal regulations and why consumers should be wary about the government’s supposed “passenger protections.”

    Listen to the interview with Ben Baldanza on this week’s Scribecast

    Since the new rules took effect Jan. 24, Spirit has waged a high-profile campaign to inform its customers about the government’s actions. Spirit has a prominent warning displayed on its website and added a charge of $2 per ticket — dubbed the Department of Transportation unintended consequences fee.

    Baldanza said the federal government is forcing airlines to be less transparent about ticket prices because customers are now seeing taxes and fees included in advertised fares. This makes it easier for the government to raise taxes without customers ever noticing why the ticket’s price is increasing.

    The podcast runs about 12 minutes. It was produced with the help of Phoebe Daigle. Listen to previous interviews on Scribecast or subscribe to future episodes.

    Posted in Featured, Scribe [slideshow_deploy]

    3 Responses to Scribecast: Spirit Airlines CEO Fights New Federal Regulations

    1. Well isn't it just like Obama to try to place the blame on someone else. He's raising taxes and wants to make it look like it's the airlines raising ticket prices. Back in 2008 Obama said he wi=ould be the most transparent President ever, so far from what I see, he's the sneakiest President ever. Just wait to you see what's going to come out of Obamacare, only 24 more months. Unless the Supreme Court rules against it this coming June.

    2. Ken Marx says:

      How in the world does hiding taxes in airfares, or any other pricing structure, benefit consumers? By that measure, a VAT would benefit customers because they wouldn't know that the higher prices they are paying are a result of taxes imposed silently in the process. This government move is just plain anti-business and anti-consumer.

    3. Bobbie says:

      Get the government OUT!!!!!!!! Let the businesses COMMENCE conducting themselves FREELY and let the PEOPLE make their PERSONAL CHOICES! The government is going out of their way looking to thieve every possible aspect, COLLAPSING the FREE MARKET for the COST of the people of the world's ONE WORLD GOVERNMENT DEMISE!

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