How the new DOT airline rules will benefit you

Last week, the Department of Transportation issued a sweeping new set of rules expanding the situations in which airlines must provide compensation to fliers and requiring greater disclosure of fees and taxes.

• NEW RULES: Airlines must pay for lost bags, bumped flights

Here's a look at how the new rules will affect you, and my response to them:

1. Refund of bag fees if luggage is lost 

This is an absolute no-brainer and it's too bad the airlines had to be regulated into doing this. If you send something by FedEx and it's an hour late past the promised delivery time, you get a refund no questions asked. Disappointed that the rule doesn't include delayed bags — just lost ones.

2. Full disclosure of all fees on websites 

If you know where to look, most airlines have already done this, but the fees aren't all on one easy-to-find page. Ryanair in Europe actually has had this for years with a link showing all its fees clearly spelled out. U.S. airlines need to do this too. It will lead to better customer relations. All fees, including frequent-flier fees, bags, online booking, changes, pets, infants and whatever else should be clearly organized in one place. Whether they should be displayed at check-in counters is another matter — that would be a pretty big sign.

• AIRLINE FEES: What you'll pay for bags, ticket changes, etc.

3. Involuntary bumping payment increased  

Even $1,300, the new maximum, won't compensate someone who missed a $10,000 cruise, or forfeited a $5,000 vacation and missed two days of work plus other expenses. I would rather have seen some mechanism for passengers who incur enormous financial loss because of a bump situation to get compensated fairly. The good news is that relatively few passengers are involuntarily bumped each year (about 65,000 in 2010).

4. Tarmac delay rule extended to international flights 

Good idea, overdue. Airlines and airports are getting their act together and developing strategies to offload those passengers who wish to return to the terminal in the event of long tarmac delays. Remember, the rule does not say a flight has to be canceled. Just that you have to allow whoever wishes to return to the terminal the chance to do so.

5. Requiring taxes to be shown in all advertised fares 

This one seems unfair to me. Should restaurants now add the meal and or sales tax to all menu prices? Should the local electronics retailer include sales tax on their television ad prices? Hotels? Rental car companies? Why are airlines being singled out? We do think that any fare that requires a round-trip purchase be listed in ads only as a round-trip fare. But requiring taxes to be listed is discriminatory and will be a nightmare for the airlines (especially since some taxes vary depending on connecting city and routing).

6. What should have been in the new rules 

The list left off one regulation we need: compensation for schedule changes made long after you bought your ticket.

You buy a ticket in April; in October the airline tells you they don't fly that route anymore, but you can buy a new fare on another airline for three times the price or get your money back. No. The original airline should put you on the alternate airline at the same price you paid. Or perhaps you bought a nonstop flight, but the airline switches you to one making two connections at the same fare. No. A hamburger is not the same as filet mignon.

Another scenario: Your airline used to fly daily from a city, but service is reduced to 3 times a week. Five months after buying your fare and making land arrangements that are non-refundable, you have to buy two nights hotel at your own expense to wait out the next departure home. No. The airline should pay for the hotel.

Fliers, what did the new DOT rules get right, and what else do you wish was covered? Sound off in comments below.

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George Hobica is the founder of Airfarewatchdog.com. Airfarewatchdog features the best airfares on thousands of routes verified by a team of expert fare analysts.

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