The Fayette Citizen-Business Page
Wednesday,January 27, 1999
Auto club unloads on
Delta for $1 service charge

A major auto club is taking dead aim at Delta AirLines. AAA announced last week that Delta's imposition of a $1 surcharge each way on domestic airlines not sold through the Delta Web site is unfair to consumers and restricts their airline travel purchase choices.

"The airline industry made billions last year and just completed the second best fourth quarter ever," said Jennifer McMurtrie, senior vice president, AAA Auto Club South Travel Agency. "It surprises us that Delta would feel the need to penalize consumers for rising distribution costs."

"AAA is concerned that a new surcharge will set a precedent in ratcheting up costs to air travelers on a regular basis, in addition to normal airfare increases," said McMutrie. "Even if an airline offers a discount to those buying through the Internet, the airline would be introducing a whole new negative, two-tiered pricing system."

Although overall costs to airlines may have risen, jet fuel costs have dropped significantly in the last year. In addition, the number of passengers and the resulting profits are rising faster than costs and have for several years. The greatest negative impact to airlines' profitability has come from foreign markets, not domestic distribution channels.

"We trust that other airlines won't join Delta in this effort and that the consumer recognizes the importance and value of using travel agents to get the lowest fare and receive high quality service," said McMurtrie.

"Travel agents represent the consumer's best source for information, service and low fares, not just the lowest fares on a particular carrier's site," she added.

AAA Auto Club South is the third largest affiliate of the American Automobile Association, with more than 3.1 million members in Fla., Ga. and the western two-thirds of Tenn.

Back to Business Home Page | Back to the top of the page