White House unveils new rules on air travel

The White House unveiled a slew of new actions on Tuesday evening aimed at improving air travel for passengers and increasing competition between airlines.

The effort includes requiring airlines to refund baggage fees if luggage is significantly delayed and overhauling the way data on mishandled luggage and wheelchairs is presented to consumers.

“The actions we’re announcing today will help consumers know how airlines are performing, will make sure that consumers don’t have to pay for services they don’t receive and will help consumers find the best flight options for them,” Jason Furman, chairman of the White House Council of Economic Advisers, said on a press call Tuesday.

The Department of Transportation (DOT) is issuing an advanced notice of proposed rulemaking that would require airlines to refund a passenger’s baggage fees if their luggage is substantially delayed.

The rulemaking was required by a short-term reauthorization of the Federal Aviation Administration this summer.

The DOT will be seeking feedback about how it should define a substantial delay, whether it should differentiate between international and domestic flights and how soon a refund should be issued.

The agency is also considering a rule that would require airlines to share all extra fees with ticket agents in an effort to eliminate surprise charges, the White House said.

The initiative includes releasing several final rules, including one to prohibit airlines from cherry-picking data about their performance; another to require large U.S. airlines to report on how often they damage or lose wheelchairs; and another to expand the number of airlines that are required to disclose information about their on-time performance, oversales and mishandled baggage rates.

As part of the new push, online travel sites that sell airline tickets will be prohibited from giving preferential treatment to certain airlines when they show available flights unless they disclose the bias.

Federal officials are also requiring airlines to report the total number of mishandled bags in relation to the overall number of checked bags, as opposed to comparing it to the overall number of travelers.

“Airline passengers deserve to have access to clear and complete information about the airlines they choose to fly and to expect fair and reasonable treatment when they fly,” Transportation Secretary Anthony Foxx said.  

“These actions will enable passengers to make well-informed decisions when arranging travel, ensure that airlines treat consumers fairly, and give consumers a voice in how airlines are regulated,” he said.

The U.S. Travel Association applauded the new effort, saying it helps boost consumer protections for passengers and “shines a light on many of the more frustrating issues that ail the air travel experience in the U.S.”

“We hope that post-election, the discussion broadens to policy options that treat the root cause rather than just the symptoms—namely, the lack of choices and air service for far too many flyers,” said Roger Dow, the group’s president and chief executive officer.

But the actions have received some pushback from the airline industry.

Airlines For America (A4A), the trade group representing most of the nation’s major airlines, warned that “portions of the administration’s proposals could harm customers by reregulating how airlines sell their products, driving up the cost of air travel.”

“Competition is alive and well in the airline industry, and all pricing information is available to consumer at the click of a button,” Nicholas E. Calio, president and chief executive officer of A4A, said in a statement.

“Efforts designed to reregulate how airlines distribute their products and services are bad for airline customers, employees, the communities we serve and our overall U.S. economy,” he said.