2023 FAA REAUTHORIZATION BILL UPDATE
June 30, 2023
On June 9, 2023, the U.S. House of Representatives published the bill text for its version of the Federal Aviation Administration (“FAA”) Reauthorization Act of 2023. A few days later, the U.S. Senate also published its version of the FAA Reauthorization Act of 2023. A brief overview of some of the important provisions applicable to U.S. and foreign air carriers included in the current versions of the bill is included below.
Advertisements and solicitations for passenger air transportation. (House Bill, Sec. 701, pg. 619).
This section would codify language on full fare advertising to provide that it is not considered an unfair and deceptive practice for a covered entity (i.e., a U.S. or foreign air carrier, etc.) to state the base airfare in an advertisement or solicitation for passenger air transportation if the covered entity also “clearly and separately discloses” all government-imposed taxes and fees associated with the air transportation, and the total cost of the air transportation, among other things.
Unrealistic or Deceptive Scheduling. (Senate Bill, Sec. 702, pg. 294).
This section would provide that if a carrier engages in unrealistic or deceptive scheduling of flights it would be considered an unfair or deceptive practice and an unfair method of competition. This section would also require the U.S. Department of Transportation (“DOT”) to task the Aviation Consumer Protection Advisory Committee (“ACPAC”) with creating recommendations on what would qualify as unrealistic or deceptive scheduling of flights that DOT could then address through a proposed rulemaking.
Refunds. (Senate Bill, Sec. 703, pg. 295).
This section includes a requirement for U.S. and foreign air carriers to provide prompt full refunds (i.e., including taxes, ancillary fees, etc.) to passengers holding nonrefundable tickets if their flight is significantly delayed or changed and the passenger has chosen not to fly on the significantly delayed or changed flight or accept a rebooking on an alternative flight, or has not chosen to accept a voucher, credit, or other form of compensation offered by the carrier. This section would also direct DOT to require that U.S. and foreign airlines display a link on the homepage of their websites to allow consumers to be able to request refunds.
More recently, the House and Senate have been marking up their respective bill drafts, which has resulted in several amendments on both sides. For example, the Senate Commerce Committee reached a “tentative deal” to add four long distance flights at Ronald Reagan Washington National Airport (DCA) in Washington D.C. despite calls by other lawmakers, local residents, and the Metropolitan Washington Airports Authority (“MWAA”) to keep the DCA “Perimeter Rule”, which only allows a limited number of flights over 1,250 miles to operate to/from the airport. Nevertheless, the Senate Commerce Committee has postponed its hearing to discuss the DCA proposal, and other proposed amendments to the bill, after a dispute between Senators broke out over a proposal to raise the mandatory retirement age for commercial airline pilots from 65 to 67 during the Senate Committee’s most recent hearing. In contrast, the House Transportation Committee recently unanimously approved its version of the bill after two days of debates and consideration of over 100 amendments. The House version of the bill will now go to the floor to be considered by all House members. Based on previous reauthorizations and current reporting, we expect there to be a number of changes before a final bill is enacted later this year, and therefore, we will continue to provide updates on this bill’s progress as we receive them.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com 202-659-6622) or Drew Derco (dderco@eckertseamans.com 202-659-6665).
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