SENATE COMMERCE CHAIR OPENS PROBE INTO AIRLINE PASSENGER FEES AND CONSUMER DATA PRIVACY POLICIES
September 5, 2014
On August 18, 2014 Senator John D. Rockefeller, Chairman of the Senate Committee on Commerce, Science, and Transportation, announced that he plans to seek information from the top ten revenue generating U.S. passenger airlines regarding their disclosure policies on certain ancillary fees. The airlines at issue are United, Delta, American, Southwest, US Airways, JetBlue, Alaska, Hawaiian, Spirit, and SkyWest. The Senator’s inquiry also asks for information on the airlines’ internal policies for protecting consumer information that is collected during the ticket purchase process.
In the past several years, a trend has emerged where airlines increasingly charge fees for “optional” services, such as checked and carry-on luggage, seat selection, and priority boarding. Fees of this nature are separate from the base fare and have resulted in significant revenue for airlines. The Senator’s inquiry tracks concerns by consumer advocate groups that in some cases, optional fees are not sufficiently disclosed to consumers shopping for flights, thus preventing consumers from making a true price comparison.
In a letter to the aforementioned carriers, Chairman Rockefeller requested the following information: (1) the role that ancillary fees play in each carrier’s business model, and how that role has changed over the past decade, if at all; (2) each carrier’s total revenues for 2012, 2013, and 2014 to date, and also for the revenues collected for certain types of fees such as change fees, wi-fi passes, first and second checked bags, and trip insurance; (3) for fees that are sometimes disclosed in a range, such as preferred seat or flight change/cancellation fees, a list of each specific price that may be offered within the range and the frequency each specific price is charged; (4) the difference in the price of many ancillary fees (2009 prices compared with current prices); and (5) whether carriers obtain personal information from consumers when they shop for airfares or from other sources.
The Committee is also interested in raising awareness among consumers about the importance of protecting personal information they provide online because no federal privacy laws currently exist for the collection, use, and disclosure of consumer travel information.