The FAA Reauthorization bill just got more complicated with the introduction of an amendment which would force airlines and travel agents to disclose all fees charged by airlines for checked bags, food and seating assignments before passengers purchase tickets.

Southwest "no fees zone" at airport

On the face of it, this amendment is meant to help make consumers aware of the fees they’ll have to pay for, and the Consumer Travel Alliance supports it.  

The airline fee disclosure amendment to the FAA Air Transportation Modernization and Safety Improvement Act (S.1451) is being asked for by New Jersey Senator Robert Menendez, a Democrat.

Sen. Menendez, explaining his amendment on the Senate Floor, said that “When you buy a ticket you should have the right to know what you are paying for. My amendment shines a light on airline surcharges.”

Airline fees for services and amenities previously offered for free started popping up in 2008 in response to the high fuel prices which were cutting into the airline industry’s profits.

It took off big time in 2009, with airlines trying to stem recession rot with all kinds of ancillary fees, from baggage to meals and snacks, blankets and pillows, holiday surcharges and extra overweight seats, seat and leg room options, etc.

The biggest cash cow is the fee for checked baggage. According to airline consulting firm Ideaworks, the top 5 airlines may pull in $1.76b this year in checked bag fees. Globally, the airline industry racked up $2.5b in baggage fees last year, as per AirlineForecasts.

As of now, travel agents and flight search engines aren’t very fond of a la carte pricing by airlines, which was chosen as the dumbest moment in travel for 2009 by TI100 experts. 

Travel agents would rather the fees be declared and sold upfront when customers are purchasing tickets, so that comparisons can be offered to consumers.

Airlines do provide information about the fees they charge on their sites, and there are tools provided by flight search and booking sites which allow customers to calculate the true cost of the flight for a specific airline, taking into consideration the fees. But side-by-side rate comparisons for different airlines with fees included is still difficult.

Airlines Reporting Corp. (ARC), which handles the transactions for 190 airlines, will unveil a system later this year where agents can collect the fees.

It’s ironic that if Sen. Menendez’s well-intentioned fee disclosure amendment is accepted, it would be in travel agents’ own self-interest to support the existing fees, and any new ones.

With travel agents more supportive of a la carte fees and doing all the dirty work, the carriers will feel less guilty about it and the number and amount of fees charged will likely grow some more.

Photo by SouthwestAir

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