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Subscribe to RSSAir travelers upset over paying à la carte fees for checked bags and other once-free services may take heart from new rules proposed by the U.S. Department of Transportation (DOT) that would require airlines to report 18 separate categories of ancillary fees.
It won’t get travelers out of paying any of them, but it should make clear just how much money they’re spending.
“It’s definitely going to arm consumers,” said George Hobica of AirfareWatchdog.com. “There are some fees they already know about, but some are really hidden.”
The proposed rules reflect the fact that current regulations require airlines to separate out revenue from only two categories: baggage fees and reservation change fees. Those fees totaled $5.7 billion last year.
Related: Airlines generated $3.4 billion in bag fees alone in 2010
Other fees, however, including those for seating assignments, unaccompanied minors and on-board sales of food, drink, pillows, entertainment and other amenities, are currently reported in larger, combined categories and therefore cannot be quantified separately.
While hard numbers are hard to come by, DOT has estimated that those fees are significant. According to the agency’s Bureau of Transportation Statistics, the U.S. airline industry collected an additional $5.1 billion in miscellaneous fees in 2009, pushing total ancillary revenues for that year to $10.2 billion.
“Our goal is to improve the quality of data we collect from airlines and make airline pricing more transparent,” said DOT Secretary Ray LaHood.
In response, Steve Lott, spokesman for the industry trade group Air Transport Association (ATA), said, “We support transparency and believe customers should always know what products and services they are paying for.”
However, Lott also questioned the value the proposed rule would provide: “We believe the airline industry ... needs to be treated like other global businesses and free from unnecessary regulatory burdens that add complexity and cost without delivering value.”
While DOT is also proposing changes in the way the airlines report incidents of mishandled bags and wheelchairs, fee disclosure is likely to be the most contentious issue as it involves billions of dollars and impacts more passengers.
It’s worth noting, however, that that impact will be a delayed one as the current proposal calls for more detailed reporting of ancillary fees, but says nothing about displaying those fees on airline websites, an ongoing point of contention between the airlines, DOT and consumer and business-travel advocates.
DOT expects to publish a proposed rule on that subject in December.
In the meantime, the public comment period on Friday’s proposed rule will close on September 13, with DOT expecting to issue a final rule in Spring 2012.
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Rob Lovitt is a longtime travel writer who still believes the journey is as important as the destination. Follow him at Twitter.
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They will find out that a big chunk of the fees goes to the government. The FAA, TSA, DOT, taxes, etc. You will find out that almost half of the costs are due to government fees.
I'd love to see the financial reports that show this.
Why is the airline industry trade group against this??? What are the airlines afraid of??? Maybe they just don't want the customer to see the total cost they are really paying for that plane trip!!! Seeing the total cost up front might make some people think twice about taking a trip. I for one am tired of being nickeled and dimed by the airlines. Next thing is they will start charging extra if you actually want a seat instead of standing for the entire flight or they will go the RyanAir rout and put pay toilets on the planes.
It is about time. Fees for everything. I wonder if passengers will be paying additional fees to get their luggage back or to use the toilet. Found a new site to discuss your travel adventures like this one at airlineslodgingetc com
Yeah, there not interested in quality of service, or conflict resolution, just the "DATA".
We must support the "Bean Counter", the "MBA" A$$Wipe in charge.
Useless government entities, doing nothing!
Not so fast, people! The airlines are (too quickly!) learning to use the same rotten, duplicitous methods that the banking industry has used against us for years. We have to put a stop to this legal lying somewhere, someway, and the government is going about this about the only way that they currently have available.
Don't like the way? Then stop bitching and change the laws! (Oh, and watch out for all of the assassins sent by our loving "friends" in Congress.....)
Steve Lott, spokesman for the industry trade group Air Transport Association (ATA) speaks with a forked tongue. On one side he says airlines support transparency (yet fails to explain why the airlines are not transparent on airfare related charges) yet says airlines should be free from excessive government regulation.
Well Steve, if the airlines were transparent on all fees, the DOT would not be making this change now would they? It's ok to nod your head yes.
Sooo Steve, what are you going to do? You can either lead by example or get out of the way so others can. Time will tell.
What's the point? I would prefer to have a breakdown of what my Congressman costs me to determine if I should start a campaign to merge districts or not. I am confused why we have 435 individuals in congress and all we get are two votes along party lines.
If they charge you for a pillow and you dont get one when you ask for one inst that fraud. Want to drive the airlines nuts. If everyone is being charged for a pillow then everyone should ask for one . That will force the airline to go buy thousands of pillows or drop the fee for it
People who fly get big heads, as if they created the ability to fly, they are the 'elite'. The airlines in reality are the least profitable sector there is, and to pick on the airlines is ridiculous. If you really want to fly for less, your only option soon will be to drive because the airlines can't afford to give away travel. Seriously.