Saturday, February 25, 2006

Small potatoes malfeasance

I realize this is small potatoes amidst the endless pantheon of Bush administration malfeasance. But kindly explain to me the public policy rationale behind making it easier for airlines to deceive their customers. From today’s New York Times...

...if the large airlines win their lobbying battle to loosen industry advertising regulations, the proposed changes would give them leeway to also advertise fares that do not include the entire amount that the airline would receive.

...Critics fear looser advertising rules would reduce the transparency of pricing and thus give traditional airlines more market power to raise fares. Well-informed buyers are able to drive a harder bargain in most cases, but opaque pricing favors sellers.

Shopping "would be more difficult and would take much more searching around," John Herrman, a retired college professor in Libby, Mont., said of the proposed relaxing of the rules... In comments to the Transportation Department, it appears that most individuals opposed loosening ad regulations. But experts nevertheless expect the agency to approve some relaxing of the rules.

Loosening the rules is all but a done deal, concluded Paul M. Ruden, senior vice president for legal and industry affairs at the American Society of Travel Agents. "Why else would this rule be up for re-evaluation?" he said. "They want to make it more difficult for people to compare fares."

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