The Biden administration has announced a proposed rule that would require airlines and travel search sites to include all fees in airline ticket prices displayed to customers, as part of a wider federal effort to help consumers cope with rising inflation.
The Department of Transportation DOT said President Biden will announce the initiative Monday afternoon at a White House Competition Council meeting.
The Council is a response to rising prices that Republicans say are caused by excessive government spending and drastic COVID 19 lockdowns. The Biden administration blames hidden fees practices that plague customers in a number of industries.
"Airline passengers deserve to know the full, true cost of their flights before they can buy a ticket," said Pete Buttigieg, Transportation Secretary. The airline would have to be transparent with customers about the fees they charge, which will help travelers make informed decisions and save money. The proposed rule would require the U.S. and foreign carriers, ticket agents and online travel search sites to disclose all baggage, cancellation and seating fees as part of the ticket price customers see.
DOT said these fees would be required to be displayed as passenger-specific or itinerary-specific based on the consumer's choice. The proposal wants to give customers the information they need to choose the best deal. Surprise fees can add up quickly and overcome what may seem at first to be a cheap fare. The department will accept public comment on the proposed rule for 60 days after it is published in the Federal Register.
The rule is one of dozens of initiatives that several federal agencies are pursuing as part of the Biden administration's competition initiative. The administration sees corporate consolidation as a problem that leads to less competition, drives up prices for consumers and drives down wages for workers. Airlines for America A 4 A, an association of major carriers such as American Airlines, Delta Air Lines, Southwest Airlines and JetBlue, defended the pricing practices of its members and said they are already highly transparent.
Marli Collier, communications manager for the association, told FOX News Digital that the United States airlines are committed to providing the highest quality of service, which includes clarity regarding prices, fees and ticket terms. A 4 A passenger carrier gives consumers more information about the breakdown of airfares on their websites, giving them a better idea of the total cost of a ticket. The CEO of Fareportal, Werner Kunz-Cho, told Fox News Digital that the company supports the goal of transparency for customers and said that this proposed DOT rule is no exception. As air travel products evolve, our brands, CheapOair and OneTravel, have always kept a focus on customer experience to make sure consumers can see the prices of the various options available to them, he said. We will work with the stakeholders to make sure that the final rules align with industry best practices, and make it easy for consumers to understand their options. Collier said that government fees are a big reason why tickets can become expensive.
There is transparency regarding taxes and fees on airline tickets, which account for more than 20 percent of domestic one-stop roundtrip tickets, according to Collier.
Several airlines and travel sites, including United, Delta, Southwest, Orbitz, Expedia and Travelocity, did not respond to Fox News Digital's request for comment at the time of publication.