New regulation to require total ticket cost set for next month
US airlines have reportedly collected $48 billion in add-on fees since 2007– yes that’s billion with a B. The checked-bag fees that most of the airlines now levy have gotten a lot of press, but other than those, passengers often aren’t aware of other extra charges for everything from talking to a live reservation agent rather than DIY bookings to once-free inflight amenities until they arrive at the airport or are actually in the air. Also, there’s that pesky matter of taxes, “security fees” and other add-0ns that jack up the base ticket prices that all airlines append to the advertised fares.
That should change a month from now. Come January 26, new rules from the Department of Transportation should be in effect requiring airlines to reveal the full ticket price including all mandatory taxes and fees in advertised fares. Other consumer-friendly rules should also go into effect. The DOT also is banning price increases after a ticket has been purchased, requiring a 24-hour window for passengers to hold or cancel a reservation without payment or penalty for reservations made a week or more before the departure date, mandating disclosure of baggage fees upon booking and on e-ticket confirmations, requiring “prompt” notification of delays of more than 30 minutes, cancellations and diversions and requiring a consistent baggage allowance and fee policy throughout a trip. Most of these would seem obvious, but airlines have become skilled at obfuscation and secrecy until they have our credit card numbers and therefore commitment to travel.
Several carriers — reportedly Southwest, Allegiant Air and Spirit Airlines — filed appeals to have the ruling reversed before it takes effect. Perhaps inspired by the Supreme Court’s ruling that corporations are people, carriers claim that required disclosure would violate their free speech rights. Huh? If the courts don’t buy this argument, I’m sure the airlines’ attorneys will find other hurdles to full disclosure of total fares. Stay tuned.
