Can the government regulate fees for checked baggage? The Transportation Department has a canned answer

by Christopher Elliott on August 3, 2009

And it’s the wrong answer.

In a recent column about luggage, I suggested that a simple rulemaking by the Transportation Department could compel airlines to include one piece of checked luggage as part of the base fare. I recommended that readers write the DOT to let it know they supported such action.

The government was ready with a cookie-cutter response.

Here’s what it sent to the concerned taxpayers who took the time to write.

Thank you for your recent message concerning fees for checked baggage. We can appreciate your interest in this issue.

Congress deregulated air fares a number of years ago. The Department of Transportation has no authority to regulate the prices that airlines charge for air transportation services, including fees for checked bags. Transporting a checked bag costs an airline more than transporting a carry-on bag, and some airlines and individuals feel that passengers who do not check a bag should not be required to share the cost of checked baggage. A similar ‘unbundling” concept for services and prices has appeared for in-flight meals and beverages, and for purchasing a ticket from a reservations agent (as opposed to online).

As indicated above, DOT cannot regulate the amount an airline charges for checked baggage, whether or not those charges are included in the advertised fare, and currently there are no regulations that prohibit airlines from charging separately for checked baggage. However, DOT has taken steps to ensure that consumers are not misled by airlines in the charges they assess for baggage. In this regard, on May 13, 2008, DOT’s Aviation Enforcement Office issued detailed guidance to the airline industry designed to ensure that prospective air travelers receive timely and effective notice about charges for checked bags. We also have a rule that prohibits airlines from charging for assistive devices tendered as checked baggage by passengers with disabilities (e.g., a wheelchair or walker).

Thank you for taking the time to share your thoughts.

This is such a wrong-headed answer on so many levels, it’s difficult to know where to start.

First of all the Airline Deregulation Act doesn’t deny the DOT all regulatory authority over fares. Rather, the intent of the law is to restrict the government’s authority to disapprove fares on the basis that they are too high or low — in other words, to control prices. It can, and does, tell airlines to stop quoting fares that are misleading or unavailable.

Second, the Transportation Department is using false logic to answer a question. It claims that because airlines are allowed to charge for meals and beverages, that gives them a license to also charge for the first checked bag. But that’s hardly a legally defensible argument. It’s like saying, “We’ve let other crimes go unpunished, so why should we start enforcing the law now?”

Finally, the government contradicts itself in its canned answer. It says it won’t come out with a rulemaking on luggage because it doesn’t have the authority, but then says it does have the authority to prohibit airlines from charging for assistive devices that are checked as luggage.

So is some checked luggage more equal than other luggage to the government?

Truth is, I met with several key people at the Transportation Department earlier this year, and came away with a very different impression. Although they have the authority to tell airlines to stop unbundling their fares, they refuse to use it.

There appears to be a deeply-rooted culture at the DOT that favors big businesses like airlines, mandates a “hands-off” approach to regulation, and is reluctant to stand up for the taxpayers who are funding the department. I believe there are some contrarians within the department who see their role differently.

Maybe it’s time for them to stand up and say something.

(Photo of Transportation Department courtesy of erin m/Flickr Creative Commons)

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  • SirWired

    Chris, as I mentioned on your blog, (and I’m surprised you did not edit this copy of the post) several points:

    1) A mandated price of zero for the first checked bag is a regulated price, which is specifically prohibited by the act that deregulated the airline industry.
    2) The Air Carrier Access Act gives the DOT a mandate to ensure non-discrimination towards disabled passengers; they have chosen to implement the act by requiring that assistive devices not be counted towards any baggage limit or allowance.
    3) There is no such act allowing the DOT to mandate one free checked bag for all passengers, therefore the DOT’s hands are tied there, as govt. agencies cannot write rules for which they have no legislative authority.

  • DaveS

    I simply disagree with the premise. Why should those of us who usually don’t check bags subsidize the shipping needs of those who do? Just because it was traditionally true that the airlines ran a free baggage shipping operation in addition to an air travel business doesn’t mean they should be required by the government to do that. Keep DOT out of it. What does this have to do with taxpayers anyway? There is no baggage tax; it’s a fee a private business charges. Handling baggage costs the airlines money. I do NOT want to mandate a “Free” bag as part of the base fare. I agree there seems to be a mood in Washington now that government wants to take over everything and either run businesses or tell businesses what they need to do. This article fits right into that culture.

  • Frank

    Finally, the government contradicts itself in its canned answer. It says it won’t come out with a rulemaking on luggage because it doesn’t have the authority, but then says it does have the authority to prohibit airlines from charging for assistive devices that are checked as luggage.
    So is some checked luggage more equal than other luggage to the government?
    ================================================

    “Assistive devices” are used by passengers with DISABILITIES.

    http://www.ada.gov/cguide.htm#anchor62335

    http://www.advocacyinc.org/TR2.cfm

  • Mary H

    If I can’t take enough clothes and maintenance goods to enjoy my trip, then why would I travel away from home longer than overnight? Talk about sucking an aircraft into its own jet engine!

    I’m a retired high maintenance woman (which comes with a respected old age) and can travel if and when I want t.o. Home looks better to me every day.

  • Lyngengr

    Once again, I must emphasize that if the airlines would enforce their OWN carry-on standards, this debate about charging for checked bags would be moot. Almost everyone would have to check a bag since most of the luggage brought on an airplane doesn’t fit the sizing templates.

  • Paulette Baker

    Posters who don’t want to pay for someone else’s checked baggage will be singing a different tune when their oversize, overstuffed “carry-on” doesn’t fit through the new TSA templates and needs to be gate checked. After getting clocked in the head recently by someone’s “overnighter,” I can’t wait for the wailing and gnashing of teeth from the holier-than-thou types who jam everything but the kitchen sink into the overhead and then act so superior to those who prefer not to roll their clothing into a ball.

  • The Good Doctor

    If the DOT feels their hands are tied, then why not push for a legislative solution?

  • Hapgood

    Perhaps some of the increased revenue from checked bags can go toward improving the reliability of their baggage handling. Much of the “bin hog” problem is due to the inexcusably selfish but understandable desire passengers have for their belongings to arrive with them. If we could be confident that our checked bag and all its contents will arrive intact on the carousel at baggage reclaim when we get off a flight, many of us would be more than happy to pay for the airline to do all the heavy lifting. But until that happens, we’ll selfishly schlep oversized carry-ons rather than waiting half an hour on hold for the guy in a Bangalore cubicle to tell us “I don’t know where your bag is either.”

    And of course, any airline executive will tell you that the revenue from checked bag fees should go to executive bonuses rather than improved baggage handling.

  • http://Tripso DavidB

    Airlines seem to love shooting themselves in the foot. If they don’t wqant vacation passengers I can go elsewhere. I have some trips left I must fly after that if I can’t drive there, I don’t need to go.
    I remember when airlines realized who there passengers were and not cattle to be treated however they please.
    We have alternatives and need to excerise them.

  • DaveS

    The public, or at least a good portion of it, wants the choice to pay less for the flight and forego checking luggage. If that wasn’t the case, airlines would compete on that – well, Southwest does compete on that. Likewise with food – Continental is competing by serving free food on many more flights than anyone else. We have choices and that’s exactly how it should be.

    Again, there is no conceivable way that it is the responsibility of the government to demand that airlines haul baggage in their base fares. Government needs to regulate safety, health, and fraud; it does not need to tell private businesses how they must structure their revenue streams as long as they are honest about it.

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