Trump administration opposes legislation as imposing ‘wider re-regulation of the airline industry’
The Department of Transportation (DOT) told Congress it is opposed to a provision in a Senate bill that would prohibit airline fees that are not “reasonable and proportional,” according to Reuters.
In April, the House passed a bill reauthorizing the Federal Aviation Administration (FAA). The Senate is expected to take up the issue as early as next month. The Senate Commerce Committee passed legislation last year that would extend the FAA.
However, the DOT told Congress in a letter obtained by Reuters on Friday that it was opposed to the Senate bill’s fee provision that bars airlines from “unreasonable” fees related to cancellation, baggage, seat selection and same-day changes.
The would allow the government to review whether fees are “disproportionate to the costs incurred by the air carrier.”
The DOT letter, dated May 23, argues that the Senate provision “represents a giant step backward, presents a risk of even wider re-regulation of the airline industry, and ultimately would harm air carriers and consumers alike,” Reuters reported.
The airline trade group Airlines for America also opposes the provision and said it would lead to government-set price controls, according to Reuters.
Revenues from baggage fees increased from $5.7 billion in 2010 to $7.5 billion in 2017, Reuters said.