President Joe Biden on Monday announced new actions to help airline customers view any potential fees when they book a flight, an effort he said would help them compare the “full cost” of a trip and choose their best price.
The president announced the newly-proposed rule from the Department of Transportation at a meeting of the White House Competition Council, highlighting how his administration was working to lower costs by safeguarding competition throughout the economy, as millions of Americans feel the impact of persisting inflation.
Biden last July signed an executive order aimed at boosting competition, slowing company consolidation and blocking antitrust practices. The order created the council and directed government agencies to take action.
The DOT rule proposed Monday would force airlines and travel websites to show any potential fees the very first time an airfare is displayed. That includes any fee to sit with your child, to change or cancel your flight or to add luggage.
“You should know the full cost of your ticket right when you’re comparison shopping … so you can pick the ticket that actually is the best deal for you,” Biden said Monday.
Airlines charged nearly $700 million in change and cancellation fees last year, according to transportation department data, plus another $5.27 billion on baggage fees.
Transportation Secretary Pete Buttigieg earlier this year called out airlines for the high number of flight cancellations and delays this summer, noting inconsistency in their commitment to compensate Americans who deal with those inconveniences.
Many airlines then clarified their policies, and DOT created a dashboard to show what fliers should expect. Most will offer a meal for a long delay, or rebooking if a flight is canceled.
“They cancel on you and you have to pay a fee to rebook. C’mon man,” Biden said Monday. “No really. It’s simply not fair. It’s not fair.”
DOT’s rule is now online and open for comments for the next 60 days, so it won’t take effect just yet.
Since Biden’s executive order on competition, his Justice Department has also filed a number of antitrust lawsuits, including one to stop major book publishers Simon & Schuster and Penguin Random House from merging.
But DOJ lawyers have also suffered setbacks in their efforts to block mergers: a federal judge this week ruled against the administration, allowing a merger of two major sugar companies in the south to go through. The Justice Department had argued the union could raise sugar prices in some states.
Last week, a separate judge blocked the DOJ challenge to UnitedHealth’s $13 billion purchase of Change Healthcare.
Still, Biden has promised his administration will continue to be tougher on anti-competition business practices that could raise prices for consumers, hurt workers or reduce profits for people like small farmers.
He has especially focused on unfair labor practices, as he’s often affirmed his intention to be the most “pro-union president” in history.
“Capitalism without competition isn’t capitalism,” he said toward the end of his remarks at the Monday meeting. “It’s exploitation. And we’re building an economy that works for everyone.”
