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BUSINESS
U.S. Department of Transportation

House approves bill to drop taxes from airline ads

Bart Jansen
USA TODAY
Travelers walk on Dec. 21, 2012, to a ticketing desk at O'Hare International Airport in Chicago.

WASHINGTON — The House approved legislation Monday to allow airlines to advertise fares without federal taxes, so long as the taxes are mentioned elsewhere, such as through a link on the Internet. But the bill must still be considered by the Senate.

The bill, approved by voice vote, would overturn a Transportation Department rule in effect for 2½ years that required airlines to include all taxes in the first and largest appearance of their prices in advertising or on websites.

Consumer advocates argued that the legislation would hide the true cost of a ticket, a form of a bait-and-switch advertising.

But airlines said they shouldn't be forced to include taxes in their advertising, in contrast to most other industries.

The chairman of the House transportation committee, Rep. Bill Shuster, R-Pa., called it a common-sense bill supported by airlines and pilots.

"It is not fair, it is not right for the government to hide those fees," Shuster said. "It's a fair and prudent piece of legislation."

Nobody spoke against the bill on the House floor.

But Kevin Mitchell, head of the Business Travel Coalition, called the legislation Orwellian for misleading travelers about the cost of their tickets.

Taxes make a big difference in the cost of a ticket. Airlines for America, the industry group representing the largest carriers, counted 17 taxes and fees that raised $19 billion last year. Taxes represent about 20% of an average $300 ticket, according to the group.

The DOT rule was finalized after years of debate in April 2011 and went into effect in January 2012.

Airlines, led by Spirit Airlines, challenged the rule all the way to the Supreme Court, saying it violated their right to free speech. But the court refused in April 2013 to hear the case.

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