Allegiant Air has come up with an idea for a new kind of airfare whose final price would rise or fall with the price of jet fuel. Passengers could choose between a traditional ticket, or one that has a discounted up-front cost, but whose final price is variable. If gas is cheaper the day you fly, you pay less. If higher, you pay more. It sounds a little crazy, until you realize where Allegiant is based out of: Las Vegas!
Here is the full text of the letter they wrote the Department of Transportation where they outlined their innovation.
Allegiant asks if a low fare is worth a gamble [The Seattle Times]