Re: SFGate: The tickets airlines don't want you to buy

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Another reason to fly Southwest - they don't care if you do this.
>
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> This article was sent to you by someone who found it on SFGate.
> The original article can be found on SFGate.com here:
> http://www.sfgate.com/cgi-bin/article.cgi?file=/news/archive/2004/04/07/financia
> l0911EDT0039.DTL
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> Wednesday, April 7, 2004 (AP)
> The tickets airlines don't want you to buy
> SCOTT MCCARTNEY, The Wall Street Journal
>
>
>    (04-07) 06:11 PDT (AP) --
>    You go duck hunting in Louisiana with Vice President Dick Cheney, and you
> fly down from Washington in a government plane. But your commercial flight
> back home is expensive -- currently about $698 -- because it's a one-way
> ticket. What to do?
>    Supreme Court Justice Antonin Scalia recently disclosed that he did what
> most of us would probably do: He bought a cheaper, round-trip ticket --
> with no intention to use the return leg. Airlines consider that fraud, but
> it didn't stop Justice Scalia: "We purchased (because they were the least
> expensive) round-trip tickets that cost precisely what we would have paid
> if we had gone both down and back on commercial flights," he wrote in a
> memo. (The 21-page memo explains why he didn't recuse himself from a case
> before the Supreme Court that involves the vice president.)
>    The round-trip ticket, which today costs $218, may have seemed a
> Solomon-like solution to any ethical issue raised by accepting a free ride
> with the vice president.
>    But airlines call it breach of contract. In fact, it's an emerging legal
> battleground: Currently, there's a federal class-action lawsuit pending
> against several airlines related to ticketing rules.
>    Carriers write their elaborate rules to defend their incongruous fares,
> and sometimes go to great lengths to enforce them. They dun travel
> agencies for issuing tickets that aren't "properly" used. They sometimes

> demand higher fares from travelers caught dodging the rules. And at the
> height of a crackdown in the late 1990s, airlines even seized some
> travelers' frequent-flier miles, saying they were fraudulently obtained.
>    But if a Supreme Court justice can skirt irrational rules -- after all,
> how can one flight be three times more expensive than two flights? -- why
> can't you?
>    Travel experts say you can. For one thing, it's not illegal. People
> engaging in these practices are breaking airline rules, but not breaking
> any law -- unless they lie about what they are doing. (More on that
> later.) Also, airlines aren't likely to track down first-time offenders,
> especially since they need all the customers they can get and aren't
> selling many top-dollar, unrestricted tickets anyway.
>    "It's not a practice we encourage, but there's little we can do about it,"
> says Jason Schechter, a spokesman for UAL Corp.'s United Airlines.
>    One of the airlines' favorite targets is the practice known as a "hidden

> city" itinerary. That's when travelers bound for a hub city book a trip to
> a cheaper destination, but end their travel at the hub. Heading home to
> Detroit from New York? Northwest's unrestricted one-way fare from New York
> to Detroit is $559, and its unrestricted fare from New York to Akron,
> Ohio, is $221. The Akron ticket means a stop in Detroit, on the same
> flight for which Northwest wants to charge more than twice the price. Book
> the Akron trip and just get off the plane in Detroit.
>    Some travelers use a variation known as "back-to-back" ticketing. Their
> strategy is to avoid an expensive midweek business round-trip fare by
> buying two cheap round-trip, Saturday-night stay tickets, and using only
> one coupon from each. Every big airline except Southwest Airlines bans the
> practice. (Southwest's rules allow it, and also hidden-city ticketing.)
>    On the high-fare carriers, the savings can be huge. The current
> unrestricted fare between New York and Houston on Continental Airlines is

> $1,972 round-trip. But someone who plans two weeks in advance can save a
> bundle buying two $232 discounted round-trips -- one from New York to
> Houston, and throwing away the return, and one from Houston to New York,
> and tossing that return, too. Savings: $1,508.
>    It's tougher for airlines to know this is going on if the tickets are
> booked without a frequent-flier number. Or if the two round-trips are
> booked with different credit cards or on different airlines (though most
> airlines still prohibit that because it's still back-to-back ticketing).
>    Airlines say ticketing tricks are actually less frequent these days than
> even two years ago because low-fare carriers have forced them to cut
> prices and erase a lot of restrictions. "There are better deals out
> there," said one pricing executive at a major airline, who asked that his
> carrier not be identified.
>    Still, travelers are pushing the issue. There's a federal class-action

> lawsuit pending in the Eastern District of Michigan accusing Northwest
> Airlines, Delta Air Lines and others of violating antitrust laws by
> conspiring to fix rules against hidden-city ticketing. Travelers were
> injured to the tune of at least $4 billion because prices were
> "artificially inflated by defendants' illegal and anticompetitive
> conduct," the suit alleges. Airlines have denied the allegations in the
> suit, and fought it vigorously.
>    Courts have held so far that airlines do have the right to set their own
> rules. They used to be printed, in fine type, on booklets stuffed into
> ticket jackets, but in this age of ticketless travel, now you usually have
> to go to airline Web sites to look for a "contract of carriage." Breaking
> the rules could constitute breach of contract, and airlines could possibly
> sue travelers for price differences. That's highly unlikely.
>    But where travelers have gotten into legal trouble in the past is by lying

> about their intentions when asked after the fact. "Lying to the airlines
> in order to get the cheap fare would be fraud, but silence coupled with a
> purchase cannot be fraud," says Mark Pestronk, a Fairfax, Va., attorney
> who specializes in travel law. "It's perfectly OK to take advantage of
> loopholes in tariff rules as long as you're not actively engaged in lying
> about it."
>    In February, for instance, Katun Corp., a Minnesota seller of office
> equipment, pleaded guilty to 12 counts of fraud and agreed to pay $11
> million in fines and restitution. The U.S. attorney in Minnesota charged
> that the company routinely booked cheap tickets in 1994 to 2000, then used
> "fraudulent manipulation of various airlines' reservations and ticketing
> systems" to change return dates without incurring a penalty. When gate
> agents detected discrepancies, Katun employees lied about the reason for
> the earlier return, the U.S. attorney's office said.

>    If caught, airlines can demand higher fees if you haven't yet completed
> your travel. If they catch you after the fact, however, they are stuck,
> Mr. Pestronk says. If they tried to charge your credit card, you could
> protest the charge, and card companies would likely side with consumers
> since the charge wasn't authorized.
>    And now, if we do get caught, we have Justice Scalia to point to as an
> example. (A Supreme Court spokesman says he has no further comment on the
> ticket.)
>    The answer for big airlines is not to find more ways to enforce bad
> policy, but to fix pricing rules so they make more sense. If they don't,
> discount carriers will do it for them. After all, had Justice Scalia been
> concerned about his ticket maneuver, he could have saved even more money
> -- and done so while fully obeying airline rules -- by buying a $109
> discounted one-way ticket on Southwest Airlines from New Orleans to
> Baltimore.
>
>  ----------------------------------------------------------------------

> Copyright 2004 AP

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