Despite fierce opposition from U.S. airlines and the Trump administration, the Senate plans to advance legislation that would regulate extra fees charged to passengers, an increasingly popular practice in the industry.
Senate Commerce Committee Chairman John Thune, a Republican from South Dakota, told the Washington Examiner on Thursday that his panel’s version of a bill reauthorizing funding for the Federal Aviation Administration — which includes the fee provision — wouldn’t be changed before reaching the Senate floor.
Timing of a vote is still unclear, and a new Supreme Court nomination could delay consideration. Funding for the FAA expires after Sept. 30.
“Unless there are amendments to strike things on the floor, it’ll probably stay pretty close to what it looked like coming out of committee,” he said. “Of course, in conference, anything’s in play.”
The Trump administration previously warned the fee regulation measure “marks a return to the pre-1978 era when the federal Civil Aeronautics Board controlled domestic airline fees and other rates charged to the public.” Airlines have said the fees, which include charges for better seats, checked baggage, and even snacks, enable them to better adapt to travelers’ varying budgets and preferences.
Regulating the charges “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,” James Owen, the deputy general counsel of the Transportation Department, wrote to Thune earlier this year.
And Thune’s support for regulation has its limits.
He voiced support for the FAA’s recent decision not to mandate seat sizes on planes. While the House-passed FAA reauthorization bill would require minimum standards for seating, Thune says it’s unlikely the Senate will include a similar provision.
“I don’t think there is any interest or desire in being that prescriptive with airlines on seat size,” he said. “That’s something that we feel is heavy-handed in terms of regulating the airlines.”
On top of potential policy changes, airlines are grappling with significantly higher jet fuel costs. Delta Air Lines, American Airlines, and others are adding fewer flights this year and lowering profits targets in 2019 after fuel prices rose by 40 percent in the year through July.
The Trump administration might be able to help with that by authorizing year-round funding for a higher blend of ethanol biofuel, known as E15. President Trump said on Thursday his administration was “very close” to taking that step.
“I’m sure we’ll be looking at it because it’s an economic issue that affect everybody’s pocketbook,” Thune said of the higher fuel costs.
