H.R. 5502: Airline Freeze of Astronomical Increases in Rates Act

This bill, referred to as the Airline Freeze of Astronomical Increases in Rates Act (or AirFAIR Act), aims to address the issue of significant airfare increases during disasters or emergencies. Here’s a summary of its key provisions:

Unfair Price Increases

The bill stipulates that it is considered an unfair or deceptive practice for any ticket agent, air carrier, or foreign air carrier to impose excessive increases in ticket prices when a disaster or emergency is declared. This regulation is intended to protect consumers from having to pay exorbitant prices for air travel during challenging circumstances.

Definition of Excessive Increases

The bill directs the Secretary of Transportation to create regulations that define what constitutes an excessive ticket price increase. At a minimum, any increase of 30 percent or more would be classified as excessive. This establishes a clear standard for both airlines and consumers regarding what is an unacceptable fare hike during emergencies.

Scope of Disaster or Emergency

For the purposes of this bill, a "disaster" or "emergency" is defined as an event declared by a state, the District of Columbia, or a U.S. territory or possession. This means the provisions of the bill would apply in various situations where governmental authorities recognize that a significant crisis is occurring, potentially impacting travel needs.

Study of Unfair Practices

The bill also mandates that the Federal Aviation Administration (FAA) conduct a study to investigate whether airlines or ticket sellers have engaged in unfair pricing practices during disasters or emergencies. The results of this study must be submitted to Congress within one year of the bill's enactment, providing further scrutiny into airline pricing practices during critical times.

Reporting Requirements

As part of this effort to oversee airline pricing, the FAA is required to report on the findings of the study regarding any unfair practices, allowing policymakers and the public to stay informed on how airlines manage their pricing strategies during emergencies.

Goals of the Bill

The overarching aim of the Airline Freeze of Astronomical Increases in Rates Act is to ensure fairness in airfare pricing during emergencies, thereby protecting consumers from potential exploitation and ensuring more equitable access to travel in times of crisis.

Relevant Companies

• DAL (Delta Air Lines, Inc.) - As a major airline, Delta could be significantly impacted by regulations on ticket pricing during emergencies.
• AAL (American Airlines Group Inc.) - Changes in airfare pricing regulations could affect American Airlines' revenue strategy and pricing during declared emergencies.
• UAL (United Airlines Holdings, Inc.) - United Airlines would need to adjust its pricing policies in compliance with any new regulations set forth by the bill.