KQ, Fastjet on the spot over misleading ticket price ads

National carrier Kenya Airways and Fastjet are among airlines in the crosshairs of the aviation regulator, who has warned against publication of misleading adverts which indicate ticket prices that are exclusive of taxes and fees in a bid to attract customers.

The Kenya Civil Aviation Authority (KCAA) has ordered airlines to advertise the full price that passengers should pay when booking flights.

The regulator says failure to abide by existing aviation, consumer protection and competition laws could see the airlines fined or even have their licences revoked.

“Kenya Airways, Fastjet, Skyward Express and many other airlines are advertising their tickets exclusive of extra charges in an attempt to show that they are the cheaper option,” KCAA spokesman Mutia Mundikwa said in an interview.

“This is false representation. The authority (could take) several options including fines based on the competition or consumer protection laws or even declining to renew an airline’s licence.”

The Competition Act protects consumers from businesses that knowingly sell sub-standard goods or lie about pricing, stipulating a Sh500,000 penalty or imprisonment of its directors for a maximum of three years or both.

Kenya Airways’ and Fastjet’s advertising blitz in the past few weeks seems to have provoked the regulator’s sharp reaction.

Low-cost carrier Fastjet launched direct flights to Dar es Salaam and Kilimanjaro on January 11, stepping up competition for Kenya Airways and its associate Precision Air, which also plies the same route.

Fastjet began advertising its one-way ticket prices to these cities as being Sh8,800 and Sh5,500 respectively, with a caveat that these charges were exclusive of taxes and other levies.

Of the charges and levies that airlines pay, some are passed on to consumers, include landing fees, fuel levy, navigation fees and parking fees.

A search of Fastjet flights to Dar es Salaam for February 14 shows that it costs Sh13,200 (with a Sh4,400 tax element) while a similar levy on the Kilimanjaro route lifts the total ticket price to Sh9,900.

Soon after Fastjet launched its flights and fare promotions, KQ followed suit with a campaign of its own.

KQ began marketing flights to Dar es Salaam Tanzania at Sh7,685, stating that this price was exclusive of tax and warning consumers not to let anyone “pull a fast one” on them.

The total price of a one-way KQ flight to Dar es Salaam, also on Valentine’s Day, is $215 (Sh21,930) while one to Kilimanjaro on the same day is $173 (Sh17,646).

READ: Fastjet Mombasa route plan raises stakes for KQ

On all its other routes, the national carrier advertises its total ticket price, suggesting that its decision to adopt a different marketing strategy on the regional routes was a response to the entry of a new competitor.

“Any further advertising without adhering to the above provisions shall be dealt with according to existing legislation,” Gilbert Kibe, the KCAA director-general, said in a statement. Airlines operating in the United States are required by law to advertise their prices inclusive of tax, a condition which also applies to their counterparts operating in Canada.

The US Department of Transportation decrees that airlines plying international or domestic routes “must provide disclosure of the full price to be paid” on the website, advertising and on the passenger’s e-tickets upon booking confirmation.

Carriers in the US are also required to show all fees for optional services using a prominent link on the home page of airline’s website including free baggage allowances and charges applicable for extra luggage.