Tourexpi
ASTA Calls on US Department of Transportation to Reform Airline Refund and Disclosure Rules
The
submission addresses the DOT’s Request for Information (RFI) and aims to ease
regulations that disproportionately affect small business ticket agents while
maintaining transparency and consumer protection in the airline sector.
Challenging
Ticket Refund Obligations
One
of ASTA's primary concerns is the current regulation requiring ticket agents to
issue refunds when airlines cancel or significantly change flights. The rule,
established in April 2024, mandates that agents refund consumers within seven
days, even if the agents do not have access to the funds. This practice has led
to severe cash flow issues for small businesses.
Zane
Kerby, ASTA President and CEO, emphasized the unfairness of the rule:
"The
DOT has saddled the nation's travel agencies with providing refunds when
airlines experience travel disruptions. This misappropriation of responsibility
needs to be fixed. Our members shouldn't be forced to cover refunds for flights
they didn't cancel."
ASTA
argues that ticket agents lack control over airline funds and real-time
cancellation data, making it unreasonable to impose refund obligations. The
organization is advocating for a complete repeal of this requirement, as it
poses significant financial risks to small travel businesses.
Modernizing
Offline Ticket Sales Disclosures
In
accordance with the 2024 FAA Reauthorization Act, ASTA is also urging the DOT
to update disclosure requirements for offline ticket sales, such as those made
over the phone or in person. Currently, advisors must make up to seven separate
disclosures per transaction, which is both time-consuming and legally risky.
ASTA
recommends allowing these disclosures to be made through referrals to airline
and DOT websites, simplifying compliance while ensuring consumers receive the
necessary information. This approach balances regulatory demands with the
practical realities of offline customer interactions.
Removing
Outdated Disclosure Requirements
ASTA
also calls for the removal of unnecessary disclosure requirements related to
aircraft insecticide use and code share flights. The organization points out
that current regulations demand advisors disclose insecticide use for all
flights to 36 countries, regardless of whether the flight is treated.
Additionally, code share disclosure requirements are often redundant, demanding
repeated notifications across multiple communication channels.
“These
regulations impose significant costs and risks on small travel businesses with
little added value to consumers,” stated Peter Lobasso, ASTA’s General Counsel
and Senior Vice President of Industry Affairs.
"Our
members need a fair regulatory environment that acknowledges their important
but limited role in the transaction chain and supports their continued ability
to serve travelers effectively."
ASTA’s
complete comments are available on its official website, ASTA.org. The organization will
continue to update its members as more information becomes available.
Image
Credit: © AA
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