DOT Announces NPRM on Enhancing Transparency of Airline Ancillary Service Fees

Subject

Proposal

Airline Ancillary Service Fees Critical to Consumer Decision

The ancillary services that the Department has identified as being critical to consumers when they choose among air transportation options are as follows: first and second checked bag, one carry-on bag, changing or canceling a reservation, and adjacent seating when traveling with a young child.

Disclosure of Baggage Fees

A proposal to require carriers and ticket agents to disclose fees for a first and second checked bag and a carry-on bag during the booking process when fare and schedule information is provided (typically first page of search results).

Disclosure of Change and Cancellation Fees and Policies

A proposal to require carriers and ticket agents to disclose change and cancellation fees and policies to consumers during the booking process when fare and schedule information is provided (typically first page of search results).

Disclosure of Family Seating Fees and Policies

A proposal to require carriers and ticket agents to disclose the fees applicable for passengers 13 or under to be seated next to an accompanying adult in the same class of service during the booking process when fare and schedule information is provided (typically first page of search results).

Timing of Online Disclosures

A proposal to require that first and second checked bag fees, carry-on bag fees, change and cancellation fees and the family seating fee be disclosed at the first point in a search process where a fare is listed in connection with a specific flight itinerary.

Passenger-specific information

A proposal that the fee information disclosed to consumers for critical ancillary services be expressed as passenger-specific information if a consumer conducts a passenger-specific itinerary search.

Definitions:

• A passenger-specific itinerary search refers to a search that takes into account a characteristic of the passenger that may impact ancillary service fees to be charged (e.g., military status, frequent flyer status, method of payment, etc.)
• An anonymous itinerary search refers to a search that does not take into account passenger characteristics that may have an

impact on ancillary service fees to be charged.

Web site and Mobile Displays

A proposal to require that the fees for ancillary services critical to a consumer’s purchasing decision be disclosed using airlines’ or ticket agent’s websites and mobile web sites.

In-Person or Telephone Disclosures of Airline Ancillary Service Fees

A proposal to require that specific fee information for a first and second check bag, one carry-on item, the canceling or changing of a reservation, and a passenger 13 or under to obtain a seat next to an accompanying adult be provided for each itinerary for which a fare is quoted to a consumer during an in-person or telephone inquiry.

Sharing of Airline Ancillary Service Fee Information with Ticket Agents

Airlines would be required to distribute fee information for critical ancillary services to ticket agents that sell or display the airlines’ fare and schedule information.

The proposal specifies that the information provided to agents be usable, accurate and accessible in real- time.

Prohibition on Fee if Required Disclosure is Not Provided

Collecting a fee from consumers for critical ancillary services without disclosure of this fee during the search process would be deemed an unfair and deceptive practice.

Transactability

A proposal that carriers and ticket agents enable family seating fees to be transactable at all points of sale.

Compliance/Implementation Period

Six-month implementation period to display a first and second checked bag fee, a carry-on bag fee, change and cancellation fee, and family seating fee (if any), to consumers whenever fare and schedule information is provided.