Feds Press Airlines For More Fee Disclosure

By now, even infrequent air travelers are aware that an airline's posted fare is not the entire cost of the flight. There are checked bag and snack fees to also take into consideration.

Transportation Secretary Ray LaHood wants air carriers to be more transparent about those fees, giving consumers a better idea of what the flight will actually cost.

A new proposed rule from the U.S. Transportation Department (DOT) would revise current reporting requirements to improve data collection on the amount airlines receive from different, specific types of fees.

“Our goal is to improve the quality of data we collect from airlines and make airline pricing more transparent,” said LaHood. “In an era of rising fees, passengers deserve better information about how airlines are performing, particularly when it comes to fees, baggage and accommodating passengers in wheelchairs.”

Unhappy passenger

Ludene, of Chandler, Tex., recently reported to ConsumerAffairs.com her family's total bill when they flew Spirit Airlines on the return leg from a cruise.

“After it was too late I found their outrageous luggage fees,” Ludene told ConsumerAffairs.com. “We had four bags and four carry-ons for the four of us. Our tickets cost $1600 our bag fees cost $680. They charge for every bag even the carry-ons. I was told on the phone that if the carry-ons fit under the seat we would not be charged. When I related that to the ticket agent she said 'well, they lied..'”

Airlines currently submit quarterly reports on revenue from baggage fees and reservation change fees to DOT’s Bureau of Transportation Statistics. The latest report shows airlines received $3.4 billion from baggage fees and $2.3 billion from reservation change fees in 2010.

However, under current rules, revenue from seating assignments and on-board sales of food, drink, pillows, blankets, entertainment, or any other ancillary items are reported in larger, combined categories and cannot be identified separately.

Proposed new rule

The Notice of Proposed Rulemaking (NPRM) proposes to require airlines to report 16 additional categories of fee revenue in addition to the baggage and reservation change fees. The agency said identification of all ancillary fees and the amounts collected by each airline would improve information available to the public.

Comments on the NPRM can be submitted to the Federal Docket Management System at www.regulations.gov, Docket ID No. RITA-2011-0001. Public comments will be accepted through Sept. 13, 2011.