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Scribecast: Spirit Airlines CEO Fights New Federal Regulations
Posted By Rob Bluey On February 4, 2012 @ 9:39 am In Enterprise and Free Markets,Featured,Scribe | 3 Comments
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.”
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.
Article printed from The Foundry: Conservative Policy News Blog from The Heritage Foundation: http://blog.heritage.org
URL to article: http://blog.heritage.org/2012/02/04/podcast-spirit-airlines-ceo-ben-baldanza-fights-federal-regulations/
URLs in this post:
 Image: http://blog.heritage.org/wp-content/uploads/zumakeystoneworld022315-200.jpg
 imposed new regulations on airlines: http://www.dot.gov/affairs/2011/dot11111.html
 nanny state: http://blog.heritage.org/tag/nanny-state/
 grounds for a lawsuit: http://www.businessweek.com/lifestyle/travelers_check/archives/2012/01/why_spirit_hates_the_new_dot_fare_rules.html
 Scribecast: http://blog.heritage.org/tag/scribecast/
 why consumers should be wary: http://ir.spirit.com/releasedetail.cfm?ReleaseID=644094
 Listen to the interview with Ben Baldanza on this week’s Scribecast: http://thf_media.s3.amazonaws.com/2012/mp3/Scribecast-02-04-12.mp3
 prominent warning displayed on its website: http://keepmyfareslow.org/
 Department of Transportation unintended consequences fee: http://travel.usatoday.com/flights/post/2012/02/spirit-unintended-consequence-fee/618553/1
 subscribe to future episodes: http://feeds.feedburner.com/AudioScribecast
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