If the airlines had their way, you will not initially know what is the full price of airfare until you attempt to book a ticket or spend your valuable time doing research — potentially bringing consumers back to those “bait and switch” days when searching for airfares to book tickets was more difficult — but a recent bill that has been introduced unanimously by the House Transportation and Infrastructure Committee includes a controversial provision that would have airlines allowed to obfuscate the actual total cost of airline tickets.
Airlines Allowed to Obfuscate the Actual Total Cost of Airline Tickets — If This Bill Becomes Law.
The specific provision in question is included in the Securing Growth and Robust Leadership in American Aviation Act — which is also known as H.R.3935. If passed, it would allow the base airfare of an airline to be displayed while government taxes and fees would simultaneously be excluded — as long as a link to the all-in price or the final price is disclosed and present in some other manner.
This means that when shopping for airfares, you likely would need to click on a pop-up window to display the added taxes and fees — and the consumer still may not see the actual total price until you reach the final step in the process of purchasing a ticket, which ultimately would waste the time of the consumer.
Earlier today, Thursday, July 20, 2023, 351 members the House of Representatives of the United States voted in favor of the bill versus 69 members who voted against it. The next stop for this bill is the Senate of the United States.
“The bill underscores the need to hire more air traffic controllers to ensure our airspace is adequately staffed. The workforce development provisions not only extend successful existing programs, but also encourage students and veterans to pursue jobs in aviation”, according to this official press release from Nicholas E. Calio, who is the current president and chief executive officer of Airlines for America. “We are pleased provisions to identify the root causes of delays and cancellations are included. More detailed and precise data will help airlines and DOT develop better policies to address operational irregularities and in turn better serve customers.”
American Airlines also issued a statement:
STATEMENT FROM AMERICAN AIRLINES ON U.S. HOUSE PASSAGE OF H.R. 3935
American Airlines applauds the U.S. House of Representatives for passing H.R. 3935, a critical milestone in the FAA Reauthorization process. Our customers and team members are relying on Congress to strengthen our nation’s aviation system. This bill makes important progress that will enable the FAA to hire and train more controllers, to improve air traffic control technology and to strengthen the pipeline of trained workers, including pilots and aviation maintenance technicians. We know that passing legislation of this size and scope is never easy, and we are thankful for the leadership of Chairman Sam Graves and Ranking Member Rick Larsen in building consensus around many key issues. We look forward to working with the U.S. Senate to complete the process as quickly as possible.
Buried in this official bill to amend title 49 — starting at line 16 on page 619 — is the complete text from section 701:
TITLE VII—PASSENGER EXPERIENCE IMPROVEMENTS Subtitle A—General Provisions
SEC. 701. ADVERTISEMENTS AND SOLICITATIONS FOR PASSENGER AIR TRANSPORTATION.
(a) FULL FARE ADVERTISING.—Section 41712 of title 49, United States Code, is further amended by adding at the end the following:
(e) FULL FARE ADVERTISING.—
- IN GENERAL.—It shall not be an unfair or deceptive practice under subsection (a) for a covered entity to state in an advertisement or solicitation for passenger air transportation the base airfare for such air transportation if the covered entity clearly and separately discloses—
- the government-imposed taxes and fees associated with the air transportation; and
- the total cost of the air transportation.
- FORM OF DISCLOSURE.—
- IN GENERAL.—For purposes of paragraph (1), the information described in paragraphs (1)(A) and (1) shall be disclosed in the advertisement or solicitation in a manner that clearly presents the information to the consumer.
- INTERNET ADVERTISEMENTS AND SOLICITATIONS.—For purposes of paragraph (1), with respect to an advertisement or solicitation for passenger air transportation that appears on a website, the information described in paragraphs (1)(A) and (1)(B) may be disclosed through a link or pop-up, as such terms may be defined by the Secretary, in a manner that is easily accessible and viewable by the consumer.
- DEFINITIONS.—In this subsection:
- BASE AIRFARE.—The term ‘base airfare’ means the cost of passenger air transportation, excluding government-imposed taxes and fees.
- COVERED ENTITY.—The term ‘covered entity’ means an air carrier, including an indirect air carrier, foreign carrier, ticket agent, or other person offering to sell tickets for passenger air transportation or a tour, or tour component, that must be purchased with air transportation.’’.
(b) LIMITATION ON STATUTORY CONSTRUCTION.—Nothing in the amendment made by subsection (b) may be construed to affect any obligation of a person that sells passenger air transportation to disclose the total cost of such air transportation, including government-imposed taxes and fees, prior to purchase of such air transportation.
(c) REGULATIONS.—Not later than 1 year after the date of enactment of this Act, the Secretary of Transportation shall issue final regulations to carry out the amendment made by subsection (a).
(d) EFFECTIVE DATE.—This section, and the amendment made by this section, shall take effect on the date that is 180 days after the date of enactment of this Act.
One Amendment Could Strip This Provision From The Bill
Jan Schakowsky — who represents the ninth district of Illinois in the House of Representatives of the United States — has proposed an amendment to the bill that would strip the aforementioned provision that is unfriendly to consumers who travel as passengers aboard commercial airplanes. That concise amendment simply contains the words “Strike section 701 (and redesignate accordingly).”
Chris Deluzio of Pennsylvania and Alexandria Ocasio-Cortez of New York are members of Congress who introduced the bill along with Jan Schakowsky and do not want airlines to be allowed to obfuscate the actual total cost of airline tickets. “Airlines want to rip off Americans with deceptive, confusing tactics to hide the true cost of flights from customers,” Chris Deluzio said, according to this official press release from the office of Jan Schakowsky on Friday, July 14, 2023. “We cannot let the airline industry roll back the clock on decade-old price transparency laws that protect consumers. This amendment would undo these industry-proposed rollbacks and help more Americans avoid junk fees, not fall prey to them.”
Past Efforts To Support — and Oppose — Transparency In the True Cost of Airfares
Back in February of 2023, a Junk Fee Prevention Act to eliminate resort fees and other mandatory hidden fees was proposed by the president of the United States to members of the House of Representatives in the name of promoting competition in the economy while simultaneously saving citizens billions of dollars per year.
Additionally, an executive order was also issued by Joseph Biden on Friday, July 9, 2021, which included directions for the Department of Transportation to consider facilitating the process of consumers in obtaining refunds from airlines as part of an overall effort to promote competition in the economy in the United States while simultaneously reducing the trend of corporate consolidation — as well as to require a clear disclosure of baggage fees, change fees, and cancellation fees in an effort to have comparison shopping for airfares among competing airlines become easier for consumers.
Airlines which conduct business in the United States have been required to include all mandatory taxes and fees in advertised airfares — as ordered by the Department of Transportation of the United States — effective as of Thursday, January 26, 2012.
Also, the Transparent Airfares Act of 2014 “declares that it shall not be an unfair or deceptive practice for an air carrier or other covered entity to state the base airfare in an advertisement or solicitation for passenger air transportation if it clearly and separately discloses: (1) the government-imposed taxes and fees for the air transportation, and (2) its total cost.”
As an example, have you ever searched for an airfare and found what appears to be a great deal, only to find that the airfare committed what could be considered a ‘bait and switch’ tactic and did not include taxes and fees until just before you were ready to pay for it?
Although it could have potentially resulted in ensuring that airfares once again became more confusing for consumers, the 21st Century Aviation Innovation, Reform, and Reauthorization Act — also known as the 21st Century AIRR Act — was supposed to, according to an official press release from the Department of Transportation of the United States:
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- Cut Washington red tape so that our manufacturers can get products to market on time, stay competitive, and continue to employ millions of Americans.
- Encourage American innovation in aviation technologies to promote a stronger American workforce.
- Ensure that our airport infrastructure connects businesses and people to the world.
- Provide a better flying experience from gate to gate.
- Ensure access to the aviation system for everyone who depends on it – especially the Nation’s millions of general aviation users, and small and rural America.
- Provide Americans with a safe, efficient, modern system that uses 21st century technology to ensure more on-time departures, more direct routes, and less time wasted on the tarmac.
Final Boarding Call
I prefer to see the total price of airfare when I shop for an airline ticket. I also like being able to see the specific breakdown of the total price. I do not like the idea of enabling airlines to be allowed to obfuscate the actual total cost of airfare.
Not only do I believe that the current way airlines are required to advertise airfares does not need to change; but I also believe that this method of advertising the true cost of rates and prices should extend to all aspects of the travel industry — especially including lodging companies, with which resort fees and other mandatory fees have increasingly become rampant at hotel, motel, resort, and hostel properties in an effort to not only to purposely advertise rates and prices that are artificially low; but also to justify them with ridiculous “benefits” such as notary services.
Passengers of airlines already put up with more than enough inconvenience and cost for the privilege to travel. Complicating the process with ridiculous legislation benefits the airlines and the federal government — but not the consumer. Lawmakers of the federal government of the United States need to stay out of implementing legislation that is designed to hurt their constituents and focus on concentrating on more productive resolutions to issues. It is a waste of taxpayer time and money. The aforementioned provision to enable airlines to be allowed to obfuscate the actual total cost needs to be removed from the bill as soon as possible, in my opinion.
I have to wonder if the aforementioned provision is a way to compromise with airlines in response to the proposal of the Junk Fee Prevention Act and other executive orders and acts over the years…
All photographs ©2019 by Brian Cohen.
