S 383 IS

To establish a national policy of basic consumer fair treatment for airline passengers.

February 6, 1999

Mr. WYDEN (for himself, Mr. MCCAIN, Ms. SNOWE, and Mr. BRYAN) introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation

To establish a national policy of basic consumer fair treatment for airline passengers.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Airline Passenger Fairness Act' .

SEC. 2. FINDINGS.

The Congress makes the following findings:

(1) The number of airline passengers on United States carriers is expected to grow from about 600 million per year today to about 1 billion by the year 2008.

(2) Since 1978 the number of certified large air carriers has decreased from 30 to 10. In 1998, 6 of the United States' largest air carriers sought to enter into arrangements that would result in 3 large networks comprising approximately 70 percent of the domestic market.

(3) Only 2/3 of all communities in the United States that had scheduled air service in 1978 still have it today, and 1/2 of those remaining are served by smaller airlines feeding hub airports.

(4) The Department of Transportation's Domestic Airline Fares Consumer Report for the 3rd Quarter of 1997 listed 75 major city pairs where fares increased by 30 percent or more year-over-year, while total traffic in these city pairs decreased by 863,500 passengers, or more than 20 percent.

(5) A 1998 Department of Transportation study found that large United States air carriers charge twice as much at their large hub airports where there is no low fare competition as they charge at a hub airport where a low fair competitor is present. The General Accounting Office found that fares range from 12 percent to 71 percent higher at hubs dominated by one carrier or a consortium.

(6) Complaints filed with the Department of Transportation about airline travel have increased by more than 25 percent over the previous year, and complaints against large United States air carriers have increased from 6,394 in 1997 to 7,994 in 1998.

(7) The 1997 National Civil Aviation Review Commission reported that recent data indicate the problem of delay in flights is getting worse, and that the number of daily aircraft delays of 15 minutes or longer was nearly 20 percent higher in 1996 than in 1995.

(8) The 1997 National Civil Aviation Review Commission forecast that United States domestic and international passenger enplanements are expected to increase 52 percent between 1996 and 2006, and the Federal Aviation Administration forecasts annual growth in revenue passenger miles will average 4.2 percent.

(9) A 1998 Department of Transportation study found that the large United States air carriers charge about 60 percent more to passengers traveling to or from small communities than they charge to passengers traveling between large communities.

(10) The Congress has directed the Secretary of Transportation to prohibit unfair and deceptive practices in the airline industry.

SEC. 3. FAIR PRACTICES FOR AIRLINE PASSENGERS.

Section 41712 of title 49, United States Code, is amended--

(1) by striking `On the initiative' and inserting `(a) DUTY OF THE SECRETARY- On the initiative'; and

(2) by adding at the end thereof the following:

`(b) SPECIFIC PRACTICES- For purposes of subsection (a), the terms `unfair or deceptive practice' and `unfair method of competition' include, in the case of a certificated air carrier, an air carrier's failure--

`(1) to inform a ticketed passenger , upon request, whether the flight on which the passenger is ticketed is oversold;

`(2) to permit a passenger holding a confirmed reserved space on a flight to use portions of that passenger's ticket for travel, rather than the entire ticket, regardless of the reason any other portion of the ticket is not used;

`(3) to deliver a passenger's checked baggage within 24 hours after arrival of the flight on which the passenger travelled and on which the passenger checked the baggage, except for reasonable delays in delivery of such baggage;

`(4) to provide a consumer full access to all fares for that air carrier, regardless of the technology the consumer uses to access the fares if such information is requested by that consumer;

`(5) to provide notice to each passenger holding a confirmed reserved space on a flight with reasonable prior notice when a scheduled flight will be delayed for any reason (other than reasons of national security);

`(6) to inform passengers accurately and truthfully of the reason for the delay, cancellation, or diversion of a flight;

`(7) to refund the full purchase price of an unused ticket if the passenger requests a refund within 48 hours after the ticket is purchased;

`(8) to disclose to consumers information that would enable them to make informed decisions about the comparative value of frequent flyer programs among airlines, including--

`(A) the number of seats redeemable on each flight; and

`(B) the percentage of successful and failed redemptions on each airline and on each flight.

`(c) REPORT- The Secretary shall include information about violations of subsection (a) by certificated air carriers in the Department of Transportation's monthly Air Travel Consumer Report.

`(d) CONFIRMED RESERVED SPACE- The term `confirmed reserved space' shall mean a space on a specific date and on a specific flight and class of service of a carrier which has been requested by a passenger and which the carrier or its agent has verified, by appropriate notation on the ticket or in any other manner provided by the carrier, as being reserved for the accommodation of the passenger .'.