Government forcing full disclosure on airfares

— -- The cheap fares that some airlines advertise — $29 to here or $59 to there — may look more expensive later this month. The government is forcing airlines to be more upfront about what your flight will really cost.

The Transportation Department, as part of a new set of consumer-protection rules, is requiring airlines in two weeks to:

•Make sure that advertised fares include all government taxes and other fees that now are hidden behind asterisks or stuck in footnotes, but which can add 30% to 50% to a ticket price.

•Include any fees for checking bags when you book and pay for a ticket online. The goal is to prevent passengers who are checking bags from being surprised by the fees and having to pay them at the airport.

•Give customers 24 hours to change their reservations without having to pay rebooking fees. This would save passengers money in case they make a mistake.

At present, passengers often don't see the full cost of a ticket until the last steps of booking and paying for it online. Customers sometimes can't pay the baggage fee ahead of time, when buying through travel agents or shopping sites such as Expedia or Travelocity.

In addition to providing greater ease and transparency, the Transportation Department says, the new rules will let consumers more easily compare prices between airlines — some of which have built their business on advertising low fares.

The rules, Transportation Secretary Ray LaHood says, "will help ensure that air travelers receive the respect they deserve before, during and after their flight."

Many fliers — and even travel agents who work daily with fares and all the various fees — say some regulation is needed on ticket prices with all the separate fees that airlines now charge.

"Everybody is frustrated with the entire process," says Olga Ramudo, president of Express Travel in Miami. "What is happening now is that they can't make decisions based on the total cost of their airline ticket."

But many airlines object to the new rules. They argue that by telling them how to advertise, the DOT is violating their free speech. They complain that they'll lose customers.

And they warn that providing more fare information could result in less transparency on what a flight will cost.

Allegiant, Spirit and Southwest airlines have asked the U.S. Court of Appeals for the D.C. Circuit to void the full-fare advertising rule. Southwest fears the rule will cost it $30 million because of losing customers and revising its frequent-flier program.

"Contrary to (the government's) claims, the full-fare advertising rule will have the effect of confusing customers and suppressing ticket sales," Southwest says in a court filing.

Allegiant and Spirit say letting passengers make free changes in their tickets for 24 hours would have "devastating consequences" for them because 90% of their tickets are sold in the week before a flight.

But nobody expects a delay to the full-fare rule. A three-judge panel refused in September to block the rule while the case is argued.

For the consumer

The new rules are the latest in a string of consumer-oriented regulations imposed on airlines by President Obama and his Republican secretary of Transportation., LaHood.