DOT at last wants airlines to explain fees
The Department of Transportation (DOT) must have heard the complaints because they are finally proposing that airlines tell it — and the public — exactly how much they’re making on all those fees.
A new rule proposed by the department would require airlines to break down fees by the type of item or service purchased — from pillows and blankets to entertainment and snacks.
Making airlines report more information about the amount and types of fees will make the total cost of flights clearer, Transportation Secretary Ray LaHood said.
“In an era of rising fees, passengers deserve better information about how airlines are performing,” he said in a statement.
The proposed rule would also require airlines report more useful statistics about lost or damaged luggage and mishandled wheelchairs.
Airlines received US$3.4 billion from baggage fees and $2.3 billion from reservation change fees in 2010, according to various sources.
Revenue from seating assignments and on-board sales of food, drinks, pillows, blankets, and entertainment also isn’t subject to excise taxes. Until now, airlines haven’t been required to report revenue from those items separately to the government.
Taxes on airline tickets go toward subsidizing airports and the national’s air traffic control system.
Under the proposal, airlines would be required to report 16 additional categories of fees in addition to baggage and reservation change fees, the department said.
By David Wilkening
David
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