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Biden announces new rules for airlines and travel sites not to hide REAL extra costs that made them at least $700 million in 2021 — and after a summer of travel chaos
- President Joe Biden will announce new proposed airline rules during a meeting of the White House Competition Council on Monday
- Requires airlines and travel sites to increase transparency on pricing and fees, causing at least $700 million in cancellations and delays in 2021 alone
- Other costs include luggage and seat selection, which sometimes costs families hundreds so that they can sit on the same ticket reservations with children
- Coming after the summer of travel chaos with hundreds of thousands of cancellations and delays
Joe Biden’s Department of Transportation (DOT) wants to hold airlines and travel websites more accountable after Americans lost $700 million in cancellation and change fees in 2021 alone.
The president will announce a new rule Monday that will require greater transparency on websites to disclose additional costs beyond the basic ticket cost, including fees for ticket changes, luggage and the ability to sit with anyone in the reservation.
The rules proposed by the government aim to improve customer protections when dealing with airlines and other third-party travel sites that sell airline tickets, as well as boost competition and lower prices for Americans buying flights.
“Airline passengers deserve to know the full, true cost of their flights before purchasing a ticket,” Transport Secretary Pete Buttigieg said in a statement.
He added: “This new proposed rule requires airlines to be transparent with customers about the fees they charge, which will help travelers make informed decisions and save money.”
Buttigieg instructed the DOT earlier this summer to create an online dashboard on which passengers can easily view flight cancellations and delays. It was prompted after a slew of airline issues this summer, including tens of thousands of flights that were either canceled or delayed.
President Joe Biden will announce new proposed rules for airlines at a meeting of the White House Competition Council Monday that would require them to increase transparency on prices and fees, leaving them with at least $700 million in cancellations and delays in 2021 alone. .
Airlines have faced staff shortages this past summer and have struggled with the weather to continue their operations normally.
Biden will announce the proposed rule changes at a meeting Monday afternoon with the White House Competition Council.
A White House official told CNN that “in 2021, the top airlines made nearly $700 million from cancellation and change fees alone.” It’s not immediately clear what Americans have spent on other allowances such as luggage or seats.
The goal, the government says, is to help Americans find the “actual best deal” when looking for flights. The White House notes that the rule is likely to lead to more competition in future airline ticket pricing.
“Those fees are going up,” the White House official said.
Some “budget” airlines charge low prices and then charge extra for almost everything, including carry-on and checked baggage.
This year’s summer of travel chaos has seen hundreds of thousands of flight cancellations and delays with staff shortages and weather complications
Another common practice imposed by airlines is to charge people to ensure their entire party can sit together on the plane, even if it includes young children booked on the same reservation.
The DOT’s statement on the proposed rule change notes that [proposal requires U.S. air carriers and ticket agents ‘to clearly disclose… family seating fees’ as well as provide ‘accurate information regarding… adjacent seating fees for families traveling with young children, if any’ to third-party websites and ticket sellers.
While the figure for ticket change and cancellation fees inches toward $1 trillion,
Biden’s executive order on this front includes 72 initiatives from more than a dozen federal agencies to address competition in the U.S. economy.
The White House Competition Council was formed last fall and has met two times previously before the Monday afternoon gathering. The group is tasked with promoting competition in the U.S. economy to help lower costs for Americans in the midst of an economic crisis that include.