US low-cost carrier Allegiant Air has suggested an imaginative way of dealing with the volatility of fuel costs, allowing passengers to take a gamble on the cost of air fares. Finding the cheapest ticket from A to B can already be a lottery due to complex yield management systems but Allegiant Air is proposing the launch of "variable tickets," that rise or fall according to current fuel prices. This is just an idea at present but Allegiant believes there is scope to sell these discounted tickets alongside traditional fixed-cost options, enabling those wishing to take a gamble to claim cash back if fuel prices fall before take-off or pay up to a pre-disclosed cap if prices rise. Allegiant Air has written to the US Department of Transportation suggesting this system as an alternative to a new consumer protection rule that prohibits raising ticket costs after purchase. "It would provide [consumers] another option for potential substantial savings on their trip costs and would be clearly disclosed and explained prior to any purchase," the airline said in the letter. Whether this ‘idea’ will ever become a reality is not clear, however, it is worth noting where Allegiant Air is based…Las Vegas, one of the two largest gambling cities in the world.
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