CHICAGO - Southwest Airlines explained to its customers via email this morning about how the Department of Transportation's new mandate for federal and airport taxes and fees must be included in the fare price, but will not change how they determine points for RapidRewards customers. Another example of how government willy-nilly issues proclamations that confuse innocent taxpaying citizens with no legislative discussion.
As a valued Rapid Rewards® Member, we would like to make you aware of the Department of Transportation's new price advertising rule and the steps that we are taking to be in compliance. This price advertising rule affects all airlines and requires that advertised fares include all government-imposed taxes and fees that the Customer is being asked to pay.
When you visit southwest.com®, the fares displayed will now include all government excise tax, government segment fees, September 11th security fees, and airport passenger facility charges. It is important to note that fares have not increased, but that the initial fare display now includes all government-imposed taxes and fees. Customers have always paid these taxes and fees; however, previously these taxes and fees were added to the fare at time of purchase.
What this means to you as a Rapid Rewards Member:There is no change in how your points are calculated when earning points for flights taken or on the amount of points required to redeem for free* flights. There is a change in the way that fares are displayed on southwest.com®.
As a result, you will not earn Rapid Rewards points on the entire advertised fare displayed at the time of booking, as the fare will have all government-imposed taxes and fees now included. You will continue to earn points on the Base Fare + Excise Tax portion of your advertised fare just like before. This has not changed since the launch of our new Rapid Rewards Program in early 2011. Points required for redemption of free flights will also be calculated using the Base Fare + Excise Tax portion of your advertised fare.
So, their prices didn't go up - they just have to look like they did, and the company is left to explain. Government regs at their worst.
