AirBaltic chided for advertising policy

  • 2003-03-13
  • Kristine Kudrjavceva
RIGA

The Latvian Consumer Rights Protection Center recently reprimanded AirBaltic, the 53 percent state-owned carrier, for what it considers as a deceptive advertising policy.

Center officials say that AirBaltic misleads consumers when it advertises the ticket price without the airport tax.

For instance, the carrier's much-touted 99 lat (161 euro) ticket to Prague, advertised in travel agency windows across Riga, suddenly jumps to over 130 lats when the airport tax is included.

A current ad campaign to fly to Hamburg for 29 lats one way is actually 49 lats when this tax is added on.

According to consumer advocates, this practice violates the Consumer Protection Law, which stipulates that consumers have the right to full information on the price of goods and services.

"Consumers should get as precise information as possible about the product," said Mara Jegere, director of the Consumer Rights Protection Center.

This type of advertising scheme is not new to the industry, and one major carrier, British Airways, has also been reprimanded for this practice.

"National airlines companies AirBaltic and British Airways have acknowledged this mistake," said Jegere.

"The question of changing product advertising policy is under debate with both airline companies, which don't oppose the new strategy, and in future they intend to advertise with taxes included in the air ticket price," she said.

However, AirBaltic officials deny any allegations that their advertising policy is misleading.

In their opinion, company advertising policy accurately reflects that ticket prices have become cheaper while airport expenses have increased.

"On the contrary, we are for informing customers about the price of the ticket and other related services separately, and this is widely used experience in the world," said AirBaltic spokeswoman Vija Dzerve.

By introducing this advertising policy and "new pricing structure," AirBaltic wants to attract a wider range of passengers with more destinations and more acceptable prices.

Dzerve agreed that consumers should know the precise information about the product they buy. However, she said, advertising any destination's full price may have drawbacks.

"Every airport has a different tax policy. There are cheaper and more expensive ones. That is why it is necessary to point out the ticket price and other expenses separately," explained Vija Dzerve.

Also, the airport tax price may change according to currency fluctuations and "is collected at departure airport from every individual," said Ruta Skrinda from Latvia Tours.

The results of negotiations between AirBaltic and the Consumer Rights Protection Center on an alternative advertisement program that would give the full ticket price will be released at the end of March.

Travel agencies and ferry services have also been required to advertise full price information, said Jegere.