The Biden administration is proposing new rules that would end hidden fees and require airlines and third-party booking sites to display the full airfare including all fees and charges right up front. The proposed rule would not impede airlines from charging additional fees, but the increased transparency will allow consumers to get a fairer picture of the total cost of a flight before purchasing a ticket.
The proposal applies to US air carriers, foreign air carriers, and third-party ticket agents, which would be required to show additional fees as passenger-specific or itinerary-specific based on the consumer’s choice.
“You should know the full cost of your ticket right when you’re comparison shopping to begin with, so you can pick the ticket that actually is the best deal for you,” Biden said at a White House Competition Council meeting.
Transportation Secretary Pete Buttigieg said the new rules would, “require airlines to be transparent with customers about the fees they charge, which will help travellers make informed decisions and save money.”
Airlines for America claims US carriers are already transparent about all ticket fees. According to the group, “A4A members already offer transparency to consumers from first search to touchdown.”
“US airlines are committed to providing clarity regarding prices, fees and ticket terms.”
In a small sampling we did, technically this proved correct. In a check on Delta, American and United sites, the actual base price quoted did include tax and fees and one can see just what they are. The first price quoted was the final price – provided you did not have baggage, want to select a seat, want your ticket to be changeable or refundable, want to upgrade to business or whatever, or be tempted by a wide range of options every step of the way.
Under the proposed rule however, airlines and travel sites would have to disclose up front – the first time an airfare is displayed – all those potential, perhaps even optional, fees.
The massive number of flight cancellations and delays this summer prompted Buttigieg to have the Department of Transportation publish an online dashboard which allows passengers to compare information as to what each of the large US airlines provides to passengers when delays or cancellations are caused by factors within the airlines’ control.
“Capitalism without competition isn’t capitalism,” Biden said at the meeting. “It’s exploitation.”
He used the example of some airlines charging fees for families with children to sit together. Others were charging customers flight change fees – even for flights cancelled by the airline.
“They cancel on you, and you have to pay a fee to rebook,” Biden said. “Come on, man. It’s just simply not fair. It’s not fair.”