Airline Freeze of Astronomical Increases in Rates Act; AirFAIR Act
Summary
H.R. 5502, also known as the AirFAIR Act, aims to prevent excessive increases in airfare prices during disasters or emergencies. The bill directs the Secretary of Transportation to issue regulations that define and prohibit unfair ticket pricing practices during such events. It also mandates a study by the FAA Administrator on unfair pricing practices related to disasters and emergencies, with a report to Congress due within one year of enactment.
Expected Effects
The AirFAIR Act will likely lead to regulations that cap airfare increases during declared disasters or emergencies. This could provide financial relief to individuals needing to evacuate or travel for emergency purposes. The FAA study could also uncover further unfair practices that need addressing.
Potential Benefits
- Prevents price gouging on airfare during disasters.
- Provides more affordable travel options during emergencies.
- Ensures fair treatment of consumers by airlines and ticket agents.
- Increases transparency in airfare pricing during crises.
- Could lead to better consumer protection regulations.
Potential Disadvantages
- May lead to unintended consequences such as reduced flight availability during emergencies if airlines reduce capacity to avoid potential price controls.
- Could create bureaucratic overhead for the Department of Transportation and the FAA.
- May be difficult to define 'excessive' price increases in a way that is both fair to consumers and economically viable for airlines.
- Potential legal challenges from airlines arguing that the regulations infringe on their right to set prices.
- The 30% threshold may be arbitrary and not reflective of actual cost increases during emergencies.
Most Disadvantaged Areas:
Constitutional Alignment
The bill aligns with Congress's power to regulate interstate commerce under Article I, Section 8, Clause 3 (the Commerce Clause). The regulation of airfares during emergencies can be argued as necessary and proper for ensuring fair practices and preventing exploitation during times of crisis, thus aligning with the Necessary and Proper Clause (Article I, Section 8, Clause 18). However, potential legal challenges could arise if airlines argue that the regulations unduly infringe on their economic liberties, potentially raising questions under the Fifth Amendment's Takings Clause if price controls are deemed too restrictive.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).