Airlines look at flight data from the past few years to determine which flights at various times of the year flew with a large number of empty seats. They then section off seats from the same flight in the coming year for “Twares”, and tweet about the lower fare on these seats. The idea is good one: United seems to sell out all their Twares in a relatively short amount of time. But customers looking for a Tware have to pay close attention to the United Airlines Twitter account, as a Tware tweet is about as common as an authentic Chanel bag in Chinatown. {Gadling}

The United Airlines twitter account also uses the free PR to gently suggest that followers join the mileage program or to let them know of certain services provided by the carrier. The airline also offers free stuff, like fares or money,  in redemption for signing up or doing something else that benefits the company in some way. {Mashable}

While this set up seems beneficial to United and some of their more go-with-the-flow customers, we wonder if the infrastructure is now causing United to lose revenue. It’s no secret that airlines have been cutting the number of flights over the past year, leaving more people to scramble for fewer seats. So United will never know if those seats they blocked off in an effort to generate revenue might have actually sold at the regular fare.

Ben Baldanza, CEO of Spirit Airlines, recently appeared in front of the House Subcommittee on Aviation to discuss the implications behind the Government Accountability Office’s (GAO) plea for airlines to disclose more information regarding hidden fees associated with purchasing an airline’s ticket. The GAO feels that too many airlines do not make it clear as to where a customer’s money is going when they purchase a ticket.

Baldanza was present to explain Spirit’s idea of “unbundling” service charges, citing that an airfare should only apply to the cost of transporting a passenger. So while you pay less money for an airfare, any additional services (i.e. overhead/checked baggage, food, etc) that you desire must be paid for separately. The point is to help customers become more aware of what they’re paying for and to decide for themselves whether or not they need a service. {Budget Travel} Spirit’s service is similar to that of Europe’s RyanAir, a company heralded for it’s $12 fares. But customers understand that anything extra besides transport must be paid for.

Baldanza supports his company’s approach to charges by citing that Southwest, one of the only airlines to have actually turned a profit over recent years while still maintaining low fares, applies hidden charges for checked bags whether or not a customer decides to utilize the service. Mr. Baldanza seems to imply that hidden costs are simply a dishonest way of conducting business. {Reuters}

As part of the price transparency called for by the GAO, taxes on hidden charges may be extended as well. Baldanza supported the idea by saying that low-fare airlines, like Spirit, pay a greater tax percentage per ticket than other carriers because they are only charging customers for the essential transportation of the passenger. Other carriers with non-taxed surplus charges built into the ticket price have a monetary buffer with each ticket purchase, meaning that their tickets are not being taxed at the same percentage as the low-fare carriers. Of course, taxes on surplus charges  would still apply to Spirit and their optional services, but at least things would be fair. {Smarter Travel}

Which business model do you think is better? Should extra services liked checked baggage fees, in-flight meals, and the sort be taxed to produce budgets for the FAA?