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Statement of Need: On April 25, 2011, the Department of Transportation published in the Federal Register a final rule on Enhancing Airline Passenger Protections (76 FR 23110). Among other requirements, the rule contains several requirements for U.S. and foreign air carriers, ticket agents, and other sellers of air transportation to disclose to consumers the cost of certain ancillary services. The rule requires disclosure through various methods. One issue the rulemaking requested comment on was whether the Department should require information regarding the cost of airline ancillary services to be displayed through Global Distribution Systems in order to enhance transparency of such fees to consumers. Because the Department lacked critical information on the issue, the Department deferred the issue to this rulemaking. This rulemaking will address that issue as well as several other airline consumer protection proposals.

Summary of the Legal Basis: The Department has authority and responsibility under 49 U.S.C. section 41712, in concert with 49 U.S.C. 40101 and 49 U.S.C. section 41702, to protect consumers from unfair and deceptive practices and to ensure safe and adequate service in air transportation.

Alternatives: One alternative would be to take no regulatory action. Also, various regulatory alternatives will be developed and the public will be afforded an opportunity to provide comments when the Department publishes the proposed rule in the Federal Register.

Anticipated Costs and Benefits: TBD

Risks: The risk of not taking regulatory action would be the continuation of a system where passengers cannot determine the true cost of their air travel.