Air Travel Specialties

So you hate those airline fees that rack up against you every time you step foot into the airport? Well better get used to it. Obama’s new spending proposal for 2013 prososes that the federal government begins collecting some 32 billion dollars in fees from airline passengers, which could potentially last upwards of a decade.

Obviously, the fees aren’t going towards nit picky airlines who want to charge you fifty dollars for ten more pounds of luggage (they also won’t be going towards airport security or building renovations either). The spike in fees, which amounts to about 25 billion dollars, will be used to help reduce our national debt. 

Although the measure still needs to be approved by the House of Representatives, most believe his proposal will be dead in the water once it meets the Republican dominated arena.

According to the Obama administration, the current system of taxes in place today does not go towards covering the Transportation Security Administration. Only about 5 dollars per airline passenger goes toward less than half of the costs to run the TSA program. The administration finds it inconceivable that airline passengers are paying for significantly less than half the security costs, yet this is the one area in which we’ve become increasingly reliant on our safety. Passengers should begin to watch for a 5 dollar minimum (moving upwards to $15) passenger security fee over time. Also, airlines will begin to be charged $100 dollars per flight which they willl shluff off on us to cover in the form of higher airfares. 

Although it’s hard to swallow, and many believe this proposal is already dead, we all need to begin paying higher prices in order to cover this national debt. 

Bolivia’s new state-run airline is rare amongst other private carriers but is quickly pushing its competitors aside.

Amidst a world wide trend of countries selling off their state-run air carriers and privatizing in order to dump their debts, Bolivia is doing just the opposite. Like other Latin American governments, including Venezuela, Bolivian President Evo Morales spent $25 million in 2009 to launch the country’s national carrier, Boliviana de Aviacion. Despite losing $6 million in its first year of operation BoA has since stabilized and is beginning to oust its private competitors. 

Other private Bolivian carriers, such as AeroSur, Aerocon and Amaszonas have had to cut back their prices and have begun offering international flights in order to stay competitive with BoA. But it’s unlikely that BoA will cease its upward trend anytime soon. In 2011, BoA’s clientele grew 21 percent and is expected to grow in the coming years. President Morales has stated that he will expand the BoA fleet by buying 190 Embraer jets. This would mean two planes delivered yearly between 2013 to 2015. Also, BoA plans to expand its routes beyond Bolivia. Now, major hubs throughout Latin America as well as Cuba will be easily accessible to travelers.

With AeroSur charging around $235 for a round trip ticket between La Paz and Santa Cruz, and BoA charging about $190, it is clear why the state-run airline has gained popularity since 2009. Of course critics say that the government controlled agency destroys any chance for fair competition in the country, I expect BoA will continue to dominant air transport in the future.

In order to add transparency to the muddy waters that surround airfare prices, the Department of Transportation is implementing new rules that may have some potential flyers complaining about high prices.

Typically, airlines advertise low airfares but  do not include extra added costs that come with government mandated taxes, security fees and other surcharges. The new rule will enforce the practice of “full fare advertising” starting later this month. 

Although customers will not be paying any extra for their entire airfare, the full fare advertising will surely cause some initial sticker shock. Buyers must be aware that they are not paying extra but they are just now being able to view the full charges up front. This transparency should be seen in a positive light. Now we won’t have to deal with being slapped with extra charges at the check-in counters and can eliminate at least one stressful experience from the whole airport/flying fiasco.

However, one charge that will now be implemented with this new policy is the cost of extra baggage. Because luggage is not mandatory and varies from customer to customer, we should still expect to see charges in this area. Yet, airlines are now being pressured to advertise the extra costs of heavy or additional bags, which means we won’t be so shocked at the check-in counter.

For international flyers, the sticker shock may be even more dramatic. Usually the tax tacked onto international flights are equivalent or exceed the base ticket price. When consumers now see this price included with the airfare they will be a bit taken aback. But the important thing to note is not that we are paying more, we’re just able to see more.

The second largest airline in Scandinavia is ASA (Norwegian Air Shuttle) and it’s also one of the cheapest carriers as well. Its fleet of 62 Boeing 737s provides high frequencies of domestic flights around Scandinavia and to business hubs such as London.

With Boeing’s Dreamliner rolling off the lines, every airline (who can afford it) is trying to get their hands on a piece of the action. ASA has already put in its order for 6 of these luxurious aircrafts and is hoping to end up with 11 by the time all is said and done. Along with this addition, they have recently announced that they will be launching long distance flights, making ASA the first European low cost carrier to fly international. They will be providing these international routes on the Dreamliner’s making the 10 hour flights a much more enjoyable and tolerable experience.

The CEO of ASA has stated, like other airlines under pressure to offer international routes, ASA will begin offering these flights in 2013 in order to maintain their image of a cheap reliable, and now, far reaching company.

Most budget airlines in Europe such as Ryanair and Easyjet offer their extremely low rates because they fly to domestic destinations only. If ASA can maintain it’s low prices and still offer flights out of the “Euro Zone” it may greatly increase this company’s business and reputability in Europe and throughout the world.

Starting in early 2013, ASA will begin it’s direct flights to New York and Bangkok.