Spirit CEO Ben Baldanza said in a statement that "the new rule takes seats out of circulation, albeit temporarily, limiting the inventory for people willing to pay on the spot. As a result, he said, the airline now has to spread costs over fewer passengers, and add the $4 fee" reported the Las Vegas Review-Journal.

Confusing? Looking at this from a different angle might provide some clarity. This is an issue that cruise lines, exempt from disclosure rules, have begun dealing with recently also.

Traditionally doing what DOT rules are having airlines do just now, travel agents or passengers booking directly could put a courtesy hold on a cruise cabin to lock in the price and availability for a given period of time. That took the cabin out of the available inventory for others to choose from, much like airlines are being forced to do now. Affecting available inventory and pricing even more, huge blocks of cabins on a given sailing could be held out of available inventory for a proposed group sailing, artificially inflating occupancy levels.

On the other end, cruise line cancellation policies were more generous in the past, allowing passengers to book up to a year or more in advance and cancel just before final payment with no penalty. Cancellation charges started on the day final payment was due and increased as the date of sailing came closer, to where if passengers canceled within 7 days of sailing the cancellation penalties would be as much as was paid for the booking. Now, that 100% penalty time is happening farther out from sailing, giving the cruise line more time to sell that cabin to someone else and further discouraging passengers from cancelling.

A good example of what the airlines are talking about can be found in new cruise fare options aimed at reducing those cabins that have been taken out of the available inventory but are not really sold yet.

Carnival Cruise Lines Early Saver Fare is a good example.

In world of seemingly unlimited deals and offers with pricing all over the board, Carnival guarantees the Early Saver Fare to be the lowest advertised fare and reduces the price if a legitimate lower price is found.

Simple.

In return, the buyer agrees that the deposit is totally non-refundable, few changes can be made to a booking without incurring a $50 per change administrative fee, and standard cancellation penalties apply, much like reduced fare airline tickets were before the disclosure rules set in.

Airlines contend that they are being singled out as other travel products including hotel rooms and cruise vacations that commonly advertise tax-off pricing and are not affected by the rule. They are correct on that point.

Transportation Secretary Ray LaHood does not agree though, calling the regulations common sense in his own return attack.

"This is just another example of the disrespect with which too many airlines treat their passengers," he said reports the Chicago Tribune.

On the other hand, if how discount air carriers do business keeps them in the air, at low prices, should we complain? Who really ends up losing here?

Flickr photo by redlegsfan21