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It’s time to strike a blow against airline fees and ‘fare shock’
The airline industry recently has come under fire for anticonsumer and competition-stifling practices. It was first revealed last month that the Department of Justice was investigating possible price collusion, and just weeks later the Department of Transportation launched an investigation into whether five airlines gouged travelers on ticket prices after an Amtrak crash in Philadelphia. Now, a Senate report, “The Unfriendly Skies: Consumer Confusion Over Airline Fees," is shedding light on the airline industry’s failure to disclose extra fees and add-on costs.
The report, prepared by the minority staff of the Senate Commerce Committee, found that ancillary airline fees, for such things as change and cancellation penalties and preferred seating, are increasingly keeping consumers in the dark about the true cost of air travel. It also outlines how this nickel-and-diming has become a $38 billion cash cow for the airline industry, which has recorded record profits this year.
None of this will likely come as a surprise to the millions of consumers who struggle with the frustration of new and ever-increasing airline fees for checked bags, seat assignments, and more. A 2013 Consumer Reports survey uncovered tremendous dissatisfaction over airline fees and confusion over bottom-line pricing.
The Senate report also recommends a series of reforms to require greater transparency from the airline industry, including better and earlier disclosure of ancillary fees to help consumers compare costs among airlines, requiring fees for checked and carry-on baggage to have a clear connection between the costs incurred by the airline and the fees charged, and limiting airline change fees to a reasonable amount tied to lead time before departure and an amount less than the original fare, among others.
Consumers Union, the policy and advocacy arm of Consumer Reports, praised the committee report for chronicling the hassles that consumers face. For years now, we have been outspoken about airline fees and the lack of transparency when it comes to the actual price of your ticket, and have criticized attempts by industry and lawmakers to actually make it harder to determine the bottom-line cost of an airline ticket.
We think the report’s recommendations regarding airline fees are sound and sensible, and they would help strike a blow against ‘fare shock.’ Consumers Union has continually pushed for rules to ensure that you can see and compare the real costs of airline tickets before you buy.
Senator Bill Nelson (D-Fla.), the committee’s ranking member, said he intends to press his colleagues to act on the report’s recommendations, and we hope that other Senators follow suit.
It’s time that skies become friendly for everyone, not just for the airline industry’s bottom line.
This feature is part of a regular series by Consumers Union, the policy and advocacy arm of Consumer Reports. The nonprofit organization advocates for product safety, financial reform, safer food, health reform, and other consumer issues in Washington, D.C., the states, and in the marketplace.
Read past installments of our Policy & Action feature.
Consumer Reports has no relationship with any advertisers on this website. Copyright © 2006-2015 Consumers Union of U.S.
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