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Monday, 10 November 2008
Jetstar: still up to all its old tricks...
2:17 PM :: 9 Comments :: Article Rating
 

All over the world, airlines and governments are heeding the call of frustrated consumers for honest, transparent advertising of air fares.

So why is Jetstar still willfully deceiving consumers?

It’s been part of the airline’s culture since Day One. When it started to advertise unbelievably low fares from Sydney to “Melbourne” in the Daily Telegraph newspaper with ‘Avalon’ in brackets - and smaller print. Anyone with a moderate knowledge of Australian geography knows Avalon is not in Melbourne. It is outside Geelong.

A friend of mine, a Chinese woman studying in Australia at the time, excitedly told me she’d seen the Jetstar deal to Melbourne - I managed to save her wasting her money in the nick of time. She was furious. How are visitors to Australia tempted by such promotions to know they’re buying an air fare to the middle of nowhere and face another whacking taxi or bus fare on top to get to the city they actually want to go to. That in the end, they’d likely be spending more than if they’d actually flown to Melbourne.

 

The ad drew at least one complain to the Australian Competition and Consumer Commission, although the outcome of that was never known.

Two weeks ago, Jetstar was still up to its old tricks. It was running advertisements in New Zealand newspapers promoting cheap one-way fares from Christchurch to Sydney. Fortunately, my optometrist has just dispensed me new reading glasses so I was able to read the fine print. “Carry-on baggage only”. Yes, if you took any luggage on your trans-Tasman overseas trip you’d have to pay another $20. Each way.

Who travels internationally on low-cost carriers without taking luggage? And what do they do with their toiletries that they’re no longer able to take on board?

The surcharge took the fare over the $200 price-point thus removing the apparent bargain rate being offered, when compared to a growing number of full service carriers plying the route.

That kind of advertising is deliberately misleading by drawing people in by promoting an unrealisable price. Surely it breaks fair trading laws? If it doesn’t, it should.

Meanwhile, in Malaysia, Emirates has, according to The Star Online, “expressed support to regulate advertising of all-in prices in Malaysia as advocated by the Malaysian Association of Tour and Travel Agents (Matta)”.

Country manager Alban Lee said Emirates believed the all-in pricing, including taxes, surcharges and fees, must be made transparent as this would make it more convenient for customers to make their purchasing decisions.

Precisely.

And in Singapore: The Advertising Standards Authority has issued a circular stating that all airlines and travel agencies are required to list the full fares of plane and travelling packages in advertisements.

Good stuff.

So how is it, then, that one Raphael Saw, commercial head at Jetstar Asia, based in Singapore, told a reporter a fortnight ago: “We definitely welcome the new (Singapore) advertising standards as they translate to a higher transparency of pricing to passengers. We do not expect any possible negative impact on our business from this ruling. Instead, this ruling will benefit us as it will highlight to consumers that even from a total fare basis, we still offer a competitive pricing coupled with value-added propositions.”

Oops. I’d watch out Raphael, because head office clearly has a different view! Either that or its New Zealand strategies are breaking its internal rules!


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Comments
By Tim @ Monday, 10 November 2008 3:18 PM
The bus fare from Tullarmarine to city and Avalon to the city is the same cost, and its about 10 minutes closer. The parking at Avalon is also cheaper then Tullamarine, so i think you are looking into it too much.

By robert @ Monday, 10 November 2008 3:26 PM
Thanks for the feedback. In the example, parking is irrelevant, but interesting to hear the bus fare is about the same. That example was the old case - I think the newer one is more important.

By Mike @ Monday, 10 November 2008 3:28 PM
I think there is a big difference between not advertising taxes that a passeneger cannot miss paying, and advertising a cheap fair if you dont take luggage other than carry on. I travel to NZ with a carry on bag and its fine. Passengers CAN travel for the advertised price...not a cent more.

By robert @ Monday, 10 November 2008 3:32 PM
Further information: According to Avalon Airport's website, (http://www.avalonairport.com.au/index.html) the airport is 55 km from Melbourne and 15 mins from Geelong. The Sunbus Australia website (http://www.sunbusaustralia.com.au/about_avalon.shtml) advises a one-way fare by bus from Geelong to Melbourne Central is $27 and $32 to "outer suburbs' (of which a list is provided).

By Ben @ Monday, 10 November 2008 7:18 PM
i dont think the airlines should take all the blame for this. i think it would be a big case of people not reading all of the information and then blaming the airlines for not informing. i also know that many travellers on the trans tasman routes do have only carry-on luggage which is why the fare is offered.. if only people would read everything i think it would save a lot of the hassles

By Douche Detector @ Tuesday, 11 November 2008 12:33 PM
Seriously, I feel stupider for reading your silly little rant.

Good witch hunt there, like Jetstar are the only poeple who have fine print in there advertising. Stay away from the radio mate as the disclaimers they do after advertising would blow your mind.

Douche Bag detected

By robert @ Tuesday, 11 November 2008 5:03 PM
My issue is that Jetstar is enticing people by misleading them as to the fare. The ad features in large type a fare which does not apply to the majority of travellers.

And this is for an international service - not a domestic service where many people, myself included, often travel without checked baggage.

Again, there is nothing wrong with the concept, it is the way it is being advertised - Jetstar's price, by not being all-inclusive - offers an unfair comparison.

It's great to see strong support out there for Jetstar. It is a very successful concept and brand and I wish it well. But that doesn't mean the airline should be beyond criticism.

By International Traveller @ Friday, 14 November 2008 9:57 AM
Seriously mate - travelling to NZ is just like travelling domestically. I for one, travel this route all the time and NEVER check a bag. You need to learn to travel a little lighter! From what I see there is a very large number of passengers that also dont check bags for these flights either.
I say hooray for Jetstar for offering cheap flights like this that cater well to the business traveler that often travels with minimal luggage!

By mary @ Saturday, 21 February 2009 6:51 PM
I have a gripe about a particular international airline company making a friend pay a full one way ticket to return to australia because they say the ticket date had expired by a few days.

What do others think about these hidden penalties?

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