Airline Baggage Transparency and Accountability Act

For Immediate Release Contact: Kate Hanni (707)337-0328
August 3, 2010
FlyersRights Lauds Introduction of Webb Bill to Address Runaway Fees Charged to Passengers
Measure would Bring Much Needed Fairness, Clarity for Consumers

Napa, CA (July 13, 2010)—Flyersrights.org, the nation’s leading voice for airline passengers, praised a bill introduced today by Senator Jim Webb (D-VA) entitled “The Airline Baggage Transparency and Accountability Act.” The bill would establish rules to assist consumers to compare airfares and other costs applicable to tickets for air transportation and would require airlines to pay taxes on such fees to fund modernization and maintenance of the U.S. Air Transport System.

“One of the main reasons airlines have made our skies the Land of the Fee, by imposing so many fees on passengers to pad their bottom line, is that they have not had to pay taxes into the Aviation Trust fund for them as they do with other revenue,” said Kate Hanni, Founder and Executive Director of FlyersRights.org. “By closing this loophole the airlines will likely reevaluate how many fees they impose on us, and when they do at least a percentage will be going to improve and maintain our aviation system.”

The bill creates transparency by providing that any fees for checked baggage, seating assignments, and optional in-flight goods and services, and other fees that may be charged after the ticket is purchased will have to be displayed to ensure that all consumers are able to easily and fairly compare airfares and other costs. Additionally, Carry-on and Checked Baggage fees will now be considered as an amount paid for taxable transportation.

“For years the airlines have not been required to fully and plainly disclose what the true total cost of a flight is including all the fees and extra charges, keeping passengers in the dark and distorting the marketplace,” added Hanni. “The Webb bill also brings needed clarity for passengers on fees as they make their choices for air travel and brings the airline sector into line with recent efforts requiring full and fair disclosure by credit card companies to consumers about fees.”

For more about FlyersRights ongoing fight to protect consumers go to: www.flyersrights.org.

CRA10412 S.L.C.
111TH CONGRESS
2D SESSION S. ll
To establish rules to assist consumers to compare airfares and other costs
applicable to tickets for air transportation, to amend the Internal Revenue
Code of 1986 to provide that fees charged for carry-on and checked
baggage on passenger aircraft are subject to the excise tax imposed
on transportation of persons by air, and for other purposes.
IN THE SENATE OF THE UNITED STATES
llllllllll
Mr. WEBB introduced the following bill; which was read twice and referred
to the Committee on llllllllll
A BILL
To establish rules to assist consumers to compare airfares
and other costs applicable to tickets for air transportation,
to amend the Internal Revenue Code of 1986
to provide that fees charged for carry-on and checked
baggage on passenger aircraft are subject to the excise
tax imposed on transportation of persons by air, and
for other purposes.
1 Be it enacted by the Senate and House of Representa2
tives of the United States of America in Congress assembled,
2
CRA10412 S.L.C.
1 SECTION 1. SHORT TITLE.
2 This Act may be cited as the ‘‘Airline Baggage Ac3
countability and Greater Security Act’’ or the ‘‘Airline
4 BAGS Act’’.
5 SEC. 2. NOTIFICATION REQUIREMENTS WITH RESPECT TO
6 THE SALE OF AIRLINE TICKETS.
7 (a) IN GENERAL.—The Office of Aviation Consumer
8 Protection and Enforcement of the Department of Trans9
portation shall establish rules to ensure that all consumers
10 are able to easily and fairly compare airfares and other
11 costs applicable to tickets for air transportation, including
12 all taxes and fees.
13 (b) NOTICE OF TAXES AND FEES APPLICABLE TO
14 TICKETS FOR AIR TRANSPORTATION.—Section 41712 of
15 title 49, United States Code, is amended by adding at the
16 end the following:
17 ‘‘(c) NOTICE OF TAXES AND FEES APPLICABLE TO
18 TICKETS FOR AIR TRANSPORTATION.—
19 ‘‘(1) IN GENERAL.—It shall be an unfair or de20
ceptive practice under subsection (a) for an air car21
rier, foreign air carrier, or ticket agent to sell a tick22
et for air transportation unless the air carrier, for23
eign air carrier, or ticket agent, as the case may
24 be—
25 ‘‘(A) displays information with respect to
26 the taxes and fees described in paragraph (2),
3
CRA10412 S.L.C.
1 including the amount and a description of each
2 such tax or fee, simultaneously with and in rea3
sonable proximity to the price listed for the
4 ticket; and
5 ‘‘(B) in the case of a ticket for air trans6
portation sold on the Internet, provides to the
7 purchaser of the ticket information with respect
8 to the taxes and fees described in paragraph
9 (2), including the amount and a description of
10 each such tax or fee, before requiring the pur11
chaser to provide any personal information, in12
cluding the name, address, phone number, e13
mail address, or credit card information of the
14 purchaser.
15 ‘‘(2) TAXES AND FEES DESCRIBED.—The taxes
16 and fees described in this paragraph are all taxes,
17 fees, and charges applicable to a ticket for air trans18
portation, including—
19 ‘‘(A) all taxes, fees, charges, and sur20
charges included in the price paid by a pur21
chaser for the ticket, including fuel surcharges
22 and surcharges relating to peak or holiday trav23
el; and
24 ‘‘(B) any fees for checked baggage, seating
25 assignments, and optional in-flight goods and
4
CRA10412 S.L.C.
1 services, and other fees that may be charged
2 after the ticket is purchased.’’.
3 (c) RULEMAKING.—The Secretary of Transportation,
4 in consultation with the Administrator of the Federal
5 Aviation Administration, shall prescribe such regulations
6 as may be necessary to carry out section 41712(c) of title
7 49, United States Code, as added by subsection (b).
8 SEC. 3. FEES FOR CARRY-ON AND CHECKED BAGGAGE
9 TREATED AS PAID FOR TAXABLE TRANSPOR10
TATION.
11 (a) IN GENERAL.—Section 4261(e) of the Internal
12 Revenue Code of 1986 is amended by adding at the end
13 the following:
14 ‘‘(6) AMOUNTS PAID FOR CARRY-ON OR
15 CHECKED BAGGAGE.—Any amount paid by an air16
line passenger to check baggage for transit on the
17 aircraft carrying such passenger or to personally
18 carry baggage into the cabin or overhead storage
19 compartments of the aircraft carrying such pas20
senger shall be treated for purposes of subsection (a)
21 as an amount paid for taxable transportation.’’.
22 (b) EFFECTIVE DATE.—The amendment may by this
23 section shall apply to transportation beginning on or after
24 the date of the enactment of this Act.
5
CRA10412 S.L.C.
1 SEC. 4. AUTHORITY OF AVIATION CONSUMER PROTECTION
2 DIVISION WITH RESPECT TO CLAIMS RELAT3
ING TO LOST AND STOLEN BAGGAGE.
4 (a) IN GENERAL.—The Assistant General Counsel
5 for Aviation Enforcement and Proceedings shall, acting
6 through the Aviation Consumer Protection Division, have
7 authority to carry out consumer protection compliance and
8 enforcement activities relating to claims by passengers
9 with respect to lost, stolen, and damaged baggage.
10 (b) RESPONSIBILITY OF DIVISION.—The Aviation
11 Consumer Protection Division shall also have authority to
12 do the following:
13 (1) INFORMATION COLLECTION.—Collect infor14
mation from each air carrier operating under part
15 121 of title 14, Code of Federal Regulations, with
16 respect to the air carrier’s procedures and perform17
ance relating to lost, stolen, and damaged baggage.
18 (2) PUBLICATION OF INFORMATION.—Make the
19 information collected pursuant to paragraph (1)
20 available to the public on the Department of Trans21
portation website.