Extras in Qantas ads as court case looms

Qantas is changing the way it promotes its cheap air fares as it readies for a day in court over claims of misleading advertising.

The Australian airline has this week started stating the exact amount of add-on charges in its advertising, though these are still not included in the headline price.

Airlines have been criticised for promoting super-low international headline airfares while hiding compulsory fees and charges in the small print.

Qantas, which is following Pacific Blue in displaying these "add-ons", does not include the compulsory departure fee at Auckland Airport.

A newspaper advertisement promoting a $129 one-way flight to Sydney, for instance, has "surcharges, fees and taxes" of $64.

Qantas and Air NZ are both in the midst of legal action brought by the Commerce Commission, which enforces the Fair Trading Act.

Air NZ's hearing is expected to start in June, when it will defend charges that it misled consumers through illegal advertising.

The commission has also laid 399 "informations" against Qantas. The watchdog has, however, proposed the court case focus on a sample of 17 advertisements. No date has been set for the Qantas hearing.

Qantas New Zealand regional manager Allan Williams told the travel industry publication Travel Today the move was a response to industry feedback on the most appropriate way to display airfare pricing.

"We've decided to include the total amount of the surcharge, fee and taxes as a separate but prominent line item in our fare advertising," he said.

Qantas spokeswoman Jodie Taylor said the change had been made after discussions with Australian competition authorities.

"Qantas has made this change to make sure there is maximum transparency for customers and to allow travellers to make an accurate comparison with other wholesalers and airlines," she said.

"It is equally important for customers to be able to compare like with like when they are looking for fares and packages. By separating the taxes, levies and surcharges from the fare and package prices, as many other airlines and wholesalers do, customers can more easily assess the various options available from different airlines and tour groups."

House of Travel commercial director Tony Moffatt said the move by Qantas to include the taxes and surcharges was "a great first step" but customers still wanted to be able to know straightaway the real cost, without having to calculate the additional charges.

Air NZ marketing chief Norm Thompson said the airline was also reviewing the way it advertised its prices.

"We in no way want to hide anything from the consumer. I think it's important the consumer does see what the full costs are."

Add-on charges

* International airfare advertising often does not include surcharges, fees and taxes, which can significantly increase the true cost of a flight.

* The Commerce Commission has taken court action against both Qantas and Air NZ, saying their adverts misled customers.

* Air NZ says it is reviewing its advertising practices.