Studies reveal that over half of what the airlines describe as ‘taxes, fees and charges’ are, in reality, operational costs. This can mislead consumers and falsely attract consumers to buying seemingly cheaper tickets.  It is also clear that the current plethora of terminology used to describe different taxes, fees, and charges makes it extremely difficult for consumers to compare offers. 

- The terms ‘taxes, fees and charges’ give the impression that that they are a cost imposed on the consumer by governmental bodies; a cost that the consumer must pay regardless. When more than half of what airlines describe as ‘taxes, fees and charges’ are in reality costs that should have been included in the air fare price, it is very misleading for consumers, - says Bjorn Erik Thon, the Norwegian Consumer Ombudsman.

All over Europe
The Norwegian Consumer Ombudsman has in the past year led an EU project with ten participant countries, where the purpose was to reveal what is hidden behind what airlines describe as ‘taxes, fees and charges’ when they promote airline tickets. The project has obtained figures from a total of 281 flights, 24 leading airlines as well as 34 major airports across Europe to overview airlines´ practice with regards the calculation of taxes and charges.

Results reveal that there are major discrepancies in how the terms ‘taxes, fees and charges’ are interpreted by the various airlines. There is also considerable variation in the actual costs companies include in their taxes and charges.

Non-transparent information on prices
In addition, the report states that the price information that the consumer is given when purchasing airline tickets is often complex and difficult for consumers to understand. The airlines´ practice makes it very difficult for the consumer to make a well-informed decision when purchasing tickets.

New recommendations
The report recommends that the airlines review their phraseology, and ensure a more accurate and consistent use of the expressions ‘taxes, fees and charges’. In addition, the report recommends that the total price for airline tickets should always be stated and that the ticket price should only consist of three cost elements; basic air fare, airport charges and government taxes. Other unavoidable taxes, fees and charges, such as fuel charges, check-in fees, etc., must be included in air fare.

- Several airlines offer an enticing low price at the beginning of the ordering process, but end up with a total price several hundred percent higher after taxes and charges are added. As the report reveals that these ‘taxes, fees and charges’ also often cover operational costs, such a presentation of flight prices is deceptive  - says Bjorn Erik Thon, the Consumer Ombudsman.

Breaking new ground
The Consumer Ombudsman published the report at a press conference in Oslo Tuesday. The EU Commissioner for Consumer Affairs, Meglena Kuneva, who was present at the press conference, thanked the Consumer Ombudsman for leading this project and emphasised that this kind of pan-European co-operation enforcement action is breaking new ground.
- It is providing us with exactly the kind of data and evidence we need to target our work on where the real problems are for consumers, Commissioner Kuneva said at the press conference.
Commissioner Kuneva has been especially concerned with aviation issues and has made this one of her priorities as Commissioner. Kuneva has shown great interest in the project and specially requested to attend the press conference in Oslo.

The results of the investigation will feed into the industry agreement currently being elaborated as well as into an action plan by the CPC network of 30 enforcement authorities to tackle the specific problems identified - the Commission commented on their webpage today.

Contacts at the Consumer Ombudsman:
Bjorn Erik Thon, Consumer Ombudsman (Tel: 99 00 50 90)
Hege Kristin Ulvin, Communications Advisor (Tel: 97 17 26 50)
Sverre Åril, Legal Adviser (Tel: 45 49 00 58)