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Biden Demands Airlines To Be Transparent About Fees
President Biden has proposed a new rule that forces the travel industry to go in-depth on pricing and fees. Under the new guidelines, customers will gain more transparency on potential fees for baggage, flight changes, and cancellations.
Airline Fees Revealed
According to the new rule, airlines and travel sites must disclose all the fees the first time it’s displayed. As per the press release sent to the media from the Department of Transportation.
Biden will be holding a meeting Monday with his cabinet and administration officials on this matter. As well as call on other government agencies to regulate companies to highlight their hidden/add-on fees to American consumers.
In the President’s speech, he’ll speak on the new rules and how companies take advantage of American consumers. “Hidden fees that don’t allow customers to see the full price of what they’re buying,” stated a White House official.
“This is going to stop the airlines from hiding the true cost of your ticket, so that when you’re searching you find the actual best deal – saving Americans money and spurring more competition on prices,” a White House official told CNN. “Those fees add up. In 2021, top airlines made nearly $700 million just on cancellation and change fees alone.”
Buttigieg And Biden Administration To The Rescue
Transportation Secretary Pete Buttigieg stated that customers deserve the right to know the full costs of their flights. Especially before booking their experiences.
“This new proposed rule would require airlines to be transparent with customers about the fees they charge, which will help travelers make informed decisions and save money,” said Buttigieg.
A trade group for US air carriers, Airlines for America stated “A4A member passenger airlines – which are fierce competitors – already offer transparency to consumers from first search to touchdown. US airlines are committed to providing the highest quality of service, which includes clarity regarding prices, fees and ticket terms. A4A passenger carriers provide details regarding the breakdown of airfares on their websites, providing consumers clarity regarding the total cost of a ticket. This includes transparency regarding taxes and government fees on airline tickets, which account for more than 20% of many domestic one-stop, roundtrip tickets.”
The delays and flight cancellations of the past summer is what motivated Buttigieg to publish a new online dashboard. The dashboard consisted of information on what each of the US airline companies can compensate customers when they experience delays and cancellations caused by the airlines themselves. A few of the airline companies updated their own policies at the request from the DOT. As airlines have been struggling with staffing issues and weather.