DOT fee rule fails to address transparency for consumers

The US Department of Transportation issued its long-awaited notice of proposed rule making on ancillary fees which have been growing increasingly opaque, after leaving it out of the consumer rule issued in April. But consumer advocates will necessarily be disappointed since it does little to address transparency. Even so, should the rule become final, it ought to make it much more fun to analyze how airlines earn their money and much easier for the government to tax ancillary fee revenues. [4316 words]

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This report contains the following subheadings:

• Does not address consumer gripes
• Rule costs
• ULCCs in suit against April rule
• Everyone wants their cut
• DoT, industry at odds
• Mishandled property
• Public education needed
• Canada, Europe face similar issues

This report contains the following charts and tables:

• DoT’s ancillary fee list
• Baggage Fees as a Percentage of Total Operating Revenue
• Baggage Fees Collected 2007-2009
• Baggage fees by airline 2010
• Baggage fees by airline 2009
• Cancel/Change Fee Revenue
• Baggage Fee Revenue
• Passenger airline net income vs most admired companies, according to Fortune Magazine. Net Profit Margin