Spirit Airlines has begun charging what they call a "Department of Transportation Unintended Consequences Fee" in response to recent regulation. As CNN reports, "Spirit Airlines says a new federal regulation aimed at protecting consumers is forcing it to charge passengers an additional $2 for a ticket.... The new DOT regulation allows passengers to change flights within 24 hours of booking without paying a penalty. The airline says the regulation forces them to hold the seat for someone who may or may not want to fly. As a consequence, someone who really does want to fly wouldn't be able to buy that seat because the airline is holding it for someone who might or might not end up taking it."
This consequence of governmental regulation has echoes of the consequences of the Durbin Amendment that led to cutting debit interchange fees. Banks began bringing in other fees as part of the Law of Unintended (But Predictable) Consequences. Take away a source of revenue, even one...


