Delta Air Lines Inc. (DAL), the world’s largest airline, has to pay penalties of $40,000 to the U.S. Department of Transportation (DOT) for violating the consumer protection rules.  DOT stated that the airlines have to disclose the full price to the consumers that they have to pay for their air travel.
 
Delta Air Lines has to pay fine as the company fails to provide adequate notice of extra taxes and fees, not included in the base fares, on the advertisement, given on its website.
 
DOT stated that the airlines can list government-imposed taxes and fees separately from the airfare, and they have to prominently show that taxes and fees are extra with a link telling the consumer about those extra taxes and fees amount. Delta Air Lines does not have a link for those extra taxes and fees.
 
At the same time, DOT also alleges AirTran Airways (AAI) for violating the rules of price advertisement and AirTran has to pay a fine of $20,000 to DOT. DOT stated that AirTran advertised a lower sale price than was actually available. In mid-February, AirTran advertised a fare sale with prices “as low as $39”, but an investigation revealed the lowest available fare was $44.
 
The penalties paid by Delta Air Lines is much lower than that paid by its competitors, United Airlines, a wholly owned subsidiary of UAL Corp. (UAUA), which paid $30,000 fine in January; Southwest Airlines (LUV) paid fine of $2,00,000 in April; and Continental Airlines (CAL) paid a fine of $100,000 in May. The penalty was at par with US Airways (LCC), which paid a fine of $40,000 in March.
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Read the full analyst report on “UAUA”
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Read the full analyst report on “LUV”
Read the full analyst report on “LCC”
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