A bill that requires airlines to be fair and reasonable about fees.
Travelers United has already clearly announced its support of the FAIR Fees act. When an industry that has near monopolistic power over its fees and when all major network carriers match each others fees dollar for dollar, consumers need protection. DOT has abrogated any responsibility for protecting consumers from unfair pricing practices. Congress, now, needs to take action.
Dear Majority Leader McConnell and Minority Leader Schumer,
The undersigned 8 consumer advocacy organizations urge you to support the bipartisan FAIR Fees provision that was included in S.1405, the Federal Aviation Administration Reauthorization Act of 2017. This provision would help ensure that the ancillary fees which airlines are increasingly adding to the base cost of a ticket are reasonable.
Airlines often claim that the unbundling of fees for services like baggage and cancellation has reduced the cost of flying. However, an independent analysis by the Associated Press has found that base fares have increased by 5% once adjusted for inflation since 2010.Likewise, the Government Accountability Office has found that the cost of flying has increased, once fees for checked baggage are included.
Under the FAIR Fees provision, section 3129 of the reported bill,airlines would be prevented from charging flight change and cancellation fees that are unreasonable and disproportionate to the cost of providing the service. The Department of Transportation would also develop standards for helping assess the reasonableness of other common airline fees.
Flight change and cancellation fees can range anywhere from $125, to as much as $750 for an international flight.While testifying before a US Senate Commerce, Science, and Transportation subcommittee, United Airlines CEO Scott Kirby admitted that change fees are “not a direct cost when somebody changes,” but rather are a revenue generator.While airlines certainly need to maintain profitability, they should not do so by taking unfair advantage of consumers who must change or cancel travel plans due to unforeseen circumstances. Requiring that change and cancellation fees bear a reasonable relation to the cost to provide the service will improve competition by preventing price gouging and better incentivizing airlines to compete over the actual cost of fares.
For these reasons, the undersigned consumer advocacy organizations urge you to support keeping the bipartisan FAIR Fees provision in the FAA Reauthorization Act.
Business Travel Coalition
Consumer Federation of America
National Consumers League
CC: Members of the US Senate
Mayerowitz, Scott and Koenig, David. “U.S. airports increasingly dominated by 1 or 2 carriers.” USA Today. July 15, 2015. Online: https://www.usatoday.com/story/todayinthesky/2015/07/15/us-airports-increasingly-dominated-by-1-or-2-carriers/30152927/
Government Accountability Office. “Commercial aviation: Information on airline fees for optional services” September 2017. Online: https://www.gao.gov/assets/690/687258.pdf
Federal Aviation Administration Reauthorization Act of 2017. Online: https://www.congress.gov/115/bills/s1405/BILLS-115s1405rs.pdf
American Airlines. “Optional service fees.” July 17, 2018. Online. https://www.aa.com/i18n/customer-service/support/optional-service-fees.jsp
Senate Commerce Science and Transportation Subcommittee on Aviation, Operations, Safety and Security. “Questions, answers and perspectives in the current state of airline travel. May 4, 2017. 01:28:55-01:33:48. Online: https://www.commerce.senate.gov/public/index.cfm/hearings?ID=C3586801-EFA9-493C-B3FB-74779C0AC3D2