As the White House continues to search for ways to lower costs for Americans, President Joe Biden announced a new initiative Monday that would eventually allow consumers to see a more complete price on airline tickets.
According to the White House, the proposed rule from the Transportation Department will help consumers save money up front and encourage more competition among airlines to offer better fares. The requirement will apply not only to airlines, but also to third party search sites.
Biden said that you should know the full price of your ticket when you compare it. The president said that the new rule will help consumers choose the best deal.
The airlines made $5.3 billion in baggage fees and $700 million in cancellation and change fees. Extra legroom and other perks that are not tracked by the government are charged by airlines.
The total cost of a ticket is disclosed by carriers, according to a trade group. More than 20% of domestic one-stop, roundtrip tickets are affected by taxes and government fees.
The proposed rule seeks to target a situation where a ticket price is listed on an airline or search website, but with information often listed elsewhere about any additional airline fees, such as for checking or carrying on a bag, getting a guaranteed seat next to your child or changing or canceling. When the airfare is first displayed, that information would be made public.
All flights to, within, and from the United States would need the fare information.
The proposal was scrapped by Donald Trump after airlines said it was unnecessary and would cost them a lot. A 60-day comment period is required before final approval.
Tension is growing between the airlines and the Biden administration, with each blaming the other for increased canceled and delayed flights this summer.
When flights are canceled or delayed for reasons within the airline's control, the transportation department began posting information to help consumers. Several airlines updated their policies to cover hotel and meal expenses for stranded travelers.
The White House Competition Council was established last year in order to find cost-saving measures for consumers. The third meeting of the group was chaired by Brian Deese.
The State Dining Room at the White House was where the event was held. "Exploitation is what it is."
Biden encouraged other federal agencies to take similar cost-saving actions, particularly by increasing transparency on hidden fees that can balloon the true cost of goods and services.
One example is a proposal from the Federal Communications Commission that would require internet service providers to more clearly state their fees and charges. New actions will be unveiled by the Agriculture Department on Monday.
The White House says that the administration has taken similar actions when it comes to bank and credit card fees.
That's right.
The reporter was from Dallas. Hope Yen is a writer for the AP.
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