HOUSE APPROVES TRANSPARENT AIRFARES ACT
July 30, 2014
The U.S. House of Representatives overwhelmingly approved the Transparent Airfares Act of 2014 (H.R. 4156) with a voice vote. The bipartisan legislation next goes to the Senate for a vote and, if approved, to President Obama for signature. The Bill would return transparency to U.S. airfare advertising and provide greater clarity for consumers by permitting carriers to separately disclose the base airfare and any government-imposed taxes and fees in advertisements for passenger air travel.
The Bill was introduced in the House by Transportation and Infrastructure Committee Chairman Bill Shuster (R-PA), senior Committee Member Peter DeFazio (D-OR), U.S. Rep. Tom Graves (R-GA), Transportation Committee Ranking Member Nick J. Rahall, II (D-WV), Aviation Subcommittee Chairman Frank LoBiondo (R-NJ), and Aviation Subcommittee Ranking Member Rick Larsen (D-WA).
As we previously reported, passage of the bill could void the U.S. Department of Transportation’s (DOT) full fare advertising rule. Understandably, airlines and consumer rights groups are split. Currently, DOT’s full fare advertising rule requires airlines and ticket agents to disclose the full price to be paid by the consumer in all advertisements. This approach has been widely supported by consumer groups and passengers. Air carriers, on the other hand, generally support the Transparent Airfares Act and argue the full fare advertising rule allows the government to bury tax hikes in ticket prices.