US proposes refunds for delayed airline baggage, will study air market

The US DoT Friday released proposed new rules to require passenger airlines to refund fees for bags that are significantly delayed and refunds for services like onboard Wi-Fi that do not work. The proposal, which will open for public comment for 60 days, came shortly after President Joe Biden signed an executive order to boost competition throughout the economy. That order also directs US regulators to review airport slots and aviation market structure issues. White House economic adviser Bharat Ramamurti said "it is our goal to have more competition in the airline industry." Rules on the allocation of airport slots have big ramifications for airline competition and market access for low-cost carriers. Under existing US rules, passengers are entitled to a fee refund if bags are lost, but not when delayed. Under the proposed rule, a “significantly delayed checked bag” is one not delivered to the passenger within 12 hours for domestic itineraries and within 25 hours for international itineraries. The department estimates consumers could see $10.7m to $11.4m annually in refunded baggage fees and estimates carriers costs at around $4m.<br/>