Hate paying high airlines fees? The “Forbidding Airlines from Imposing Ridiculous Fees Act” would end that.
The airline industry achieved its most profitable year in decades last year. Part of that was due to factors such as low gas prices. But it also didn’t hurt that airlines collected almost $11 billion in fees during 2015, up more than 24 percent from the year before. Fees from baggage, booking, and other similar charges made up less than three percent of airlines’ revenue a decade ago — now it’s eight percent and rising.
The Ridiculous Fees Act
S. 2656, the “Forbidding Airlines from Imposing Ridiculous Fees Act” (or FAIR Fees Act for short) would end that. Introduced earlier this month by Sen. Ed Markey (D-MA), the bill would require that airlines only charge fees that cover “the costs of the baggage handlers, ticket agents, the baggage processing or anything that reasonably pertains to checking a bag.” A press release announcing the bill gave as an example that several airlines charge more for a second bag than a first, even though it costs airlines the same to check both.
“In recent years, fees and ticket prices have gone up despite the fact that gas prices and airline choices have gone down. Airlines should not be allowed to overcharge captive passengers just because they need to change their flight or have to check a couple of bags,” Markey said. “There is no justification for charging consumers a $200 fee to resell a $150 ticket that was cancelled well in advance. The FAIR Fees Act puts a stop to this fee gouging and will help ensure passengers are flying the fair and friendly skies.”
Sen. Richard Blumenthal (D-CT) has called these pricing tactics “gouging” and said that these fees can sometimes increase the total cost of flying by up to double the ticket price.
Opposition
However, the bill faces opposition in the Republican-controlled Congress. In fact, the tide in Congress appears to be turning in the opposite direction from increased regulation of the industry, as a bill which would provide the biggest deregulation of the airline industry since 1978 is gaining traction and will likely receive a vote soon. Sure enough, Markey’s bill only has one co-sponsor so far, and has yet to see a companion bill introduced in the House.
Also it appears that the industry may be regulating itself to some extent on this issue. After much public outcry over sharply escalating fees, airlines such as Southwest and JetBlue are curbing some of their fees, hoping to lure in more customers as a result. If this becomes more widespread through voluntary measures, a legislative fix may come to be seen as overburdening and unnecessary.
Outlook
The bill has been referred to the Senate Commerce, Science, and Transportation Committee. Its odds of passage may be curtailed even further by the fact that many Members of Congress don’t feel the financial burden of fees themselves — many airlines have waived ticket change fees for Members of Congress.
