Just as sure as you can’t change the laws of physics, you are unable to change the laws of economics.
In a similar manner that we saw the cost of credit cards go up when companies could no longer charge the interest rates they wanted to the people they wanted, the cost of purchasing a ticket is going to go up. All in the name of “public good”, “consumer protection” and “protecting the little guy”.
See, already airlines are being forced to schedule flights that are chuck full of people. They’re doing this because they need to make sure every single seat is full in order to make the flight profitable. Part of the strategy in doing this is to over sell the flight by juuuuust a bit in order to accommodate the occasional no show. This works out pretty well. Until the no-shows show. Then we have an over booked flight and someone is out of luck.
In the past, the penalty for that was minimal. A new booking and maybe airline “bucks” that could be used on future flights.
Now, with new rules and stiffer penalties airlines will be paying more. A lot more:
The new fees, slated to take effect later this year, will see displaced passengers receiving double their ticket price, up to a maximum of $800 instead of the current $400, if the airline can get them to their destination within a reasonable amount of time (defined as within one to two hours of the schedule for domestic flights and within one to four hours for international flights). Passengers stalled for longer periods will receive four times the ticket price, up to a maximum of $1,300.
Guess what? The price of tickets are going to go up by the amount of over booked tickets the airline DOESN’T sell AND the anticipated cost of the fine. Divide that out among the number of seats on the plane and voila! The added price of an airline ticket.
Thanks Uncle Sam.
Thanks for nothin’!