Lawmakers, Trade Groups Call for Investigation Into Airlines
Joe Cortez April 12, 2016
Calls stem from overnight changes of multi-city routing rules among legacy carriers.
Days after all three American legacy carriers changed rules affecting multi-city travel itineraries, lawmakers are calling for a probe into the universal policy shifts. In a press release, Senator Bob Menendez (D–N.J.) asked the Department of Transportation (DOT) to investigate the changes, ensuring travelers are paying a fair price on airfare.
The changes took place at the beginning of April 2016 with no formal announcement. Under the unilateral movements made by American Airlines, Delta Air Lines and United Airlines, flyers traveling on a multi-city itinerary must now purchase full-fare refundable tickets instead of the cheaper non-refundable tickets. As a result, the senator claims pricing for multi-city itineraries has increased from $299 to over $1,100 on certain routes.
In an open letter to Transportation Secretary Anthony Foxx, Menendez urges the department to investigate the changes under the DOT’s “authority to regulate against unfair and deceptive practices.” The senator claims the policy shifts increase the airline’s bottom line at the expense of flyers.
“At a time when travelers have to deal with proliferating airline fees, shrinking airplane seats, and long lines at airports, the last thing they need is to worry that they might be spending hundreds of extra dollars on their airfare for no reason,” Menendez writes in his letter to Foxx. “The Department of Transportation has shown a strong commitment to airline consumer protection, and I urge you to consider building upon this work by investigating this new airline practice.”
The call to investigate echoes those of the Business Travel Coalition, who was the first to decry the quiet changes. In an open letter to the Department of Justice, leaders of the advocacy group claimed the changes were substantial, forcing travelers to pay even more out of pocket.
After the changes were discovered, spokespersons for the airlines claimed the changes were meant to prevent undermining intended prices on certain marketplaces. The legacy carriers have not yet issued a statement in response to Menendez’s letter.
[Photo: Getty Images]
I just ran into this myself. Traveling DFW CLT X IND 0 LAX X LAS O PHX X DFW next week. the airfare worked out to about $900 on a point-to-point itinerary, and about $1,200 on a multi-segment single PNR. This is just plain WRONG and the airlines are asking for it.
My must make a stand now. These past few mergers should have been stopped. Now dealing with the consequences. This along with the frequent flyer devaluations of late.
Oh, heaven forbid customers try to find a better price and "undermine intended prices on certain marketplaces."
How interesting that all 3 airlines made the same change to their fare rules at the same time. Yeah, there's no collusion going on here....