Department of Transportation (DOT) to consider issuing clear rules requiring the refund of fees when baggage is delayed or when service isn’t actually provided, such as when a plane’s WiFi or in-flight entertainment system is broken.
Directs the DOT to consider issuing rules that require baggage, change and cancellation fees to be clearly disclosed to the customer.
U.S. President Joe Biden mulls ordering the Transportation Department (DoT) on Friday to frame new rules to curb on the fees levied by airlines that passengers treat as junk and many a times does not confirm to a proper service.
Biden will direct DoT to consider clear rules that would require the refund of fees when baggage is delayed or when miscellaneous services such as the plane's Wi-Fi or in-flight entertainment system are malfunctioning or not provided.
The president will also direct the department to consider rules that would require airlines to clearly disclose baggage, change and cancellation fees for air travellers.
The directives are part of a broad executive order that Biden signs on Friday afternoon taking aim at monopolies in industries that include agriculture, technology, health care, banking and shipping.
The order includes 72 initiatives, regulations and directives involving more than a dozen federal departments to promote greater economic competition.
The top four are calling the shots , U.S. airline industry is dominated by four carriers - United , Southwest, American and Delta.
"Reduced competition contributes to increasing fees like baggage and cancellation fees," the White House said in a statement. "These fees are often raised in lockstep, demonstrating a lack of meaningful competitive pressure, and are often hidden from consumers at the point of purchase."
The top 10 carriers collected $35.2 billion in fees in the year 2018, according to the White House, a massive increase from the $1.2 billion collected in 2007.
A lack of competition in the airline industry "reduces incentives to provide good service," the White House said, noting airlines were late delivering 2.3 million checked bags in 2019, according to data from the Transportation Department.
Biden's order shows up when the DoT is already asking airlines to refund fees on checked baggage if the bags aren't delivered at a pre-determined time. Once approved after a time consuming rule making process, the new policy could go into effect on early 2022.
