Jetrader - January/February 2013 - 17

Catching
the
By Don Mitchell Partner, Smith, Gambrell & Russell, LLP

Spirit
is opaque. For that and other reasons they are under attack. The US Department of Transportation is moving to make reporting more transparent. A notice of proposed rulemaking setting guidelines for enhanced reporting was issued in July 2011 with public hearings held in May 2012. The final rule is expected within 24 months. While improved fee reporting benefits statisticians and industry watchers (and possibly tax collectors), what helps the passengers? Similar opacity is being attacked in the consumer arena as well. The US DOT Jetrader 17

Airline Ancillary Fees Under Attack

The US Department of Transportation is moving to make reporting more transparent.

A

Ancillary fees are the gold rush of the decade. They have been a major contributor to the return of financial health to many airlines. In September 2012, Delta reported a third quarter profit of US$1.05 Billion. While US$440 Million of that amount was due to gains on fuel hedges, ancillary fee revenue was undoubtedly a big part of the balance. The Amadeus Worldwide Estimate of Ancillary Revenue projects that US domestic airline ancillary revenue will reach nearly US$12.4 billion in 2012. Exact figures remain uncertain because airline reporting of ancillary fee revenue


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Jetrader - January/February 2013

Table of Contents for the Digital Edition of Jetrader - January/February 2013

A Message from the President
Calendar/News
Q&A: Jep Thornton
Aircraft Financing in 2013
AFRA's NEW Best Management Practice (BMP) Guide Closes The Circle And Joins The Dots
ISTAT Foundation
Turbo Prop Leasing: Thoughts from the Front
Catching The Spirit: Ancillary Fees Under Attack
Aircraft Appraisals
Advertiser.com/Advertiser Index
Jetrader - January/February 2013 - cover1
Jetrader - January/February 2013 - cover2
Jetrader - January/February 2013 - A Message from the President
Jetrader - January/February 2013 - Calendar/News
Jetrader - January/February 2013 - 5
Jetrader - January/February 2013 - Q&A: Jep Thornton
Jetrader - January/February 2013 - 7
Jetrader - January/February 2013 - Aircraft Financing in 2013
Jetrader - January/February 2013 - 9
Jetrader - January/February 2013 - 10
Jetrader - January/February 2013 - AFRA's NEW Best Management Practice (BMP) Guide Closes The Circle And Joins The Dots
Jetrader - January/February 2013 - 12
Jetrader - January/February 2013 - ISTAT Foundation
Jetrader - January/February 2013 - Turbo Prop Leasing: Thoughts from the Front
Jetrader - January/February 2013 - 15
Jetrader - January/February 2013 - 16
Jetrader - January/February 2013 - Catching The Spirit: Ancillary Fees Under Attack
Jetrader - January/February 2013 - 18
Jetrader - January/February 2013 - Aircraft Appraisals
Jetrader - January/February 2013 - 20
Jetrader - January/February 2013 - 21
Jetrader - January/February 2013 - Advertiser.com/Advertiser Index
Jetrader - January/February 2013 - cover3
Jetrader - January/February 2013 - cover4
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