Nickel and Dimed by the airline industry

I took my first flight on June 30, 1984. I remember it like it was, well, 24 years ago. I was 14 years old and had never been to an airport before. I was a tad anxious, yet excited when I saw that 'big orange' CP-Air DC-10, which would fly me away to Amsterdam.

The fare for that flight was $998 and the tax was a whopping $12.50. This was before the days of airport improvement fees, security fees, fuel surcharges, wheelchair levies, insurance surcharges, administration fees, late-booking fees, credit-card booking charges, and bag fees.

Now let's put this into perspective. Today, that same flight at the same time of year, would cost $1,700, plus $131 in taxes and fees (and you would have to fly the Dutch airlines KLM, as CP-Air, and its successor brand is no longer in business).

Using a cost of living calculator today's base fare is comparatively the same as it was in 1984; however, the tax has increased from 1% of the fare in 1984 to 7% today. While KLM doesn't list the taxes and fees when making a booking query, I don't think many travellers today would begrudge paying an extra $131 on top of the fare. What people don't like is being teased with a fare and then learning that it will really be hundreds of dollars more.

Take for example a recent $49 fare (one-way, of course) from Vancouver to London. Turns out the return fare is $149 plus $513 in taxes and fees, none of which are listed. Oh, and you'll also have to pay a $15 late-booking fee. What nonsense. If you want to charge me $15, add it to the fare. Don't nickel and dime the consumer when they book. It's that kind of behaviour that incenses the public.

While flying on Air Canada, at the same time, doubles the cost of this particular flight, they are at least more transparent about the taxes and fees.

$526 - base fare
$420 - fuel surcharge
$23 - Airport Improvement Fee
$17 - Canadian Air Traveller Security Fee
$39.96 - UK Passenger Service Charge
$1.15 - GST
$81.14 - UK Air Passenger Duty


Total taxes and fees - $585.25 (or 111% of the fare)

This past weekend, Air Transat and Flight Centre both offered a tantalizing $99 fare to London, but with $512.50 in "secretive" taxes and fees, the cost soars to more than $600. Still a good deal, but why the lack of transparency. There's something wrong when more than 80% of the total fare is made up of "taxes and fees". A clever, yet annoying marketing tool I suppose.

My only wish is that there is some accountability for some of the fees and taxes collected. Take for instance the Canadian Air Travel Security Charge (ATSC), which was instituted in 2002. Initially, the government charged $24 for any flight outside Canada and the US. The fee has since been lowered, but when introduced it was the highest security charge in the world.

Further, because there is no direct mechanism that links the ATSC to the security expenditures, there is a concern the fee, which is meant to be used for air security is going into general revenue, and being used for other purposes.

The public doesn't begrudge airlines that strive to make a profit, but don't try to fool us with low fares. If it costs $600 to fly to London just say so. And the government, too needs to be more transparent about the money it collects.