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Tuesday 27 sepTember 2022
White House: New rule will show 'true cost' of plane tickets
By SEUNG MIN KIM and
DAVID KOENIG Associated
Press
WASHINGTON (AP) — Presi-
dent Joe Biden will an-
nounce a new initiative
Monday that would even-
tually allow consumers to
see a more complete price
on airline tickets — includ-
ing baggage and change
fees — before they buy, as
the White House continues
to search for ways to lower
costs for Americans amid
persistently high inflation.
The White House says the
proposed rule from the
Transportation Department
will prevent airlines from
hiding the "true cost" of air-
line tickets, which would
help consumers save mon- The requirement will ap- and Expedia.
ey up front and encourage ply not only to airlines di- Airlines made nearly $5.3 fees last year, according to control. That prompted
more competition among rectly but also to third-party billion in baggage fees Transportation Department several airlines to update
airlines to offer better fares. search sites such as Kayak and nearly $700 million on figures. Airlines charge a policies around finding a
and was scrapped in 2017
by then-President Donald
Trump after airlines com-
plained that it was unnec-
essary and would incur sig-
nificant costs. It must now
go through a 60-day com-
ment period before final
approval.
The proposed rule comes
as tension grows between
the Biden administration
and the airlines, with each
blaming the other for an
increase in canceled and
delayed flights this summer.
The Transportation Depart-
ment also began posting in-
formation to help consum-
Southwest Airlines planes taxi at Phoenix Sky Harbor International Airport in Phoenix, July 17, 2019. ers learn what each airline
Associated Press provides when flights are
canceled or delayed for
cancellation and change reasons within the airline's
variety of other fees for new flight and covering
extra legroom and other hotel and meal expenses
perks that are not tracked for stranded travelers.
by the government. Biden was scheduled to
A trade group for the larg- make the announcement
est U.S. airlines said carriers on Monday afternoon at
already disclose terms and a meeting of the White
the total cost of a ticket. House Competition Coun-
"This includes transparency cil, established last year as
regarding taxes and gov- a way for his administration
ernment fees on airline to find cost-saving mea-
tickets, which account for sures for consumers. It will
more than 20% of many do- be the third meeting of the
mestic one-stop, roundtrip group, chaired by National
tickets," said Katherine Es- Economic Council director
tep, a spokeswoman for Brian Deese.
Airlines for America. At the meeting, Biden plans
The proposed rule seeks to to push other federal agen-
target a typical situation cies to take similar cost-sav-
faced by consumers where ing actions, particularly by
a ticket price is listed on an increasing transparency on
airline or search website, hidden fees that can bal-
but with information often loon the true cost of goods
listed elsewhere about any and services.
additional airline fees, such One example is a proposal
as for checking or carrying from the Federal Com-
on a bag, getting a guar- munications Commission
anteed seat next to your that would require internet
child or changing or can- service providers to better
celing a flight — fees that outline fees and charges
vary widely by airline and on what the administration
could quickly tack on up calls a "broadband nutri-
to hundreds of dollars more tion label." And the Agricul-
to a price of a ticket after ture Department on Mon-
the initial purchase. Under day will also unveil new ac-
the proposal, all that fee in- tions meant to encourage
formation would be made competition in various agri-
available upfront when the cultural markets.
quoted airfare is first dis- The administration has tak-
played. en similar actions when it
The fare information would comes to bank and credit
be required for all commer- card fees, which the White
cial flights to, within, and House says have saved
from the United States. consumers $3 billion annu-
The proposal dates back to ally compared to before
the Obama administration the COVID-19 pandemic.q