In response to an Executive Order by President Barack Obama,
the U.S. Department of Transportation announced several planned executive
actions regarding aviation consumer protections. These include:
- Baggage
reimbursement: The DOT issued an Advance Notice of Proposed Rulemaking that
it will require airlines to refund baggage fees when luggage is "substantially
delayed." Airlines already must compensate travelers when luggage is lost.
- Display bias: Airlines
and online travel agencies are required to disclose any bias favoring certain
airlines in their displays.
- Increased reporting:
The DOT will require more carriers to report on-time performance, oversold
situations and mishandled baggage. Currently, carriers accounting for at least
1 percent of domestic scheduled passenger revenue must report that data. As of
Jan. 1, 2018, that will drop to 0.5 percent. In addition, the DOT will require U.S.
carriers to report on flights operated by domestic codeshare partners.
- Mishandled baggage
reporting: The DOT already requires airlines to report the number of bags
it mishandles, but now it will require them to report the total number of
checked bags so the department can measure against that rather than the total
number of travelers. That measurement "better informs passengers of the
likelihood that their baggage will be mishandled," according to the
department.
Additionally, the DOT is exploring requirements for airlines
to provide "all-in pricing information," according to a White House
press release. Its rulemaking project will examine whether it should require airlines
to share ancillary fees—and which ones—upfront with online shoppers. It also is
examining whether it is an "unfair practice" for airlines not to list
all fare and flight options on online travel sites.
The White House said the DOT actions "will help
consumers know how airlines are performing, make sure consumers don’t have to
pay for services they don’t receive and help consumers find the best flight
options. That will create a more competitive market with better outcomes for
American consumers."
Airline
trade organization Airlines for America, however, said some of the
distribution-related proposals overreach. "The fact that a record number
of people are flying underscores that customers are benefiting every day from
affordable fares and the ability to choose among carriers, amenities and
service options that best meet their needs," A4A president and CEO Nicholas
Calio said. "Dictating to the airline industry distribution and commercial
practices would only benefit those third parties who distribute tickets, not
the flying public."