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Federal Register / Vol. 86, No. 137 / Wednesday, July 21, 2021 / Proposed Rules
passengers and urged that airlines be required to reimburse passengers for baggage fees when bags are delayed.
Some have asserted that lengthy delays may render the bag transportation service useless to consumers. The Department shares consumers concern about the inconvenience and frustration associated with delayed bags. According to data collected by the Departments Bureau of Transportation Statistics BTS, in calendar year 2019, the largest 10 U.S. carriers and their branded codeshare partners collectively mishandled nearly 3 million bags from passengers they transported on domestic scheduled flights.3 Although the mishandled baggage data collected by the Department does not distinguish among lost, delayed, damaged, and pilfered bags, data published by an aviation analytics firm show that delayed bags are by far the most common type of mishandlings.
Specifically, according to the 2019 SITA
Baggage IT Insights Report,4 globally, delayed bags represented 77% of all mishandled bags in 2018, while damaged or pilfered bags account for 18%, and lost or stolen bags account for 5%. Assuming delayed bags are 77% of mishandlings in 2019 for domestic flights by U.S. reporting carriers, similar to 2018, we estimate that at least 2.3
million checked bags transported domestically were delayed in 2019.
To better address the concerns regarding fees for delayed checked bags and implement the requirements of 49
U.S.C. 41704, note, the ANPRM
specifically sought comment on 1 how to determine the appropriate length of the delay within the statutory parameters that would trigger the refund requirement for delayed checked bags;
2 how to determine when a bag has been delivered for the purpose of measuring the length of delay, and 3
how to determine the appropriate method for providing automated refunds as provided in the statute.
Approximately 60 individuals, ten representatives of airlines and airline associations Airlines for American, Allegiant Air, American Airlines, Delta Air Lines, International Air Transportation Association, Sun Country Airlines, National Air Carrier Association, Spirit Airlines, the Association of Asia Pacific Airlines, and Virgin Atlantic, one consumer group Consumer Union, and one trade association for travel agencies 3 Source: Air Travel Consumer Report, February 2020, page 36, https www.transportation.gov/
sites/dot.gov/files/2020-02/February%2020
20%20ATCR.pdf.
4 https www.sita.aero/resources/type/surveysreports/baggage-it-insights-2019.

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American Society for Travel Advisors submitted comments. The Department has carefully reviewed and considered the comments received on the ANPRM
and is proposing a rulemaking designed to ensure that airlines provide prompt refunds for ancillary fees paid by passengers for delayed checked baggage as provided in 49 U.S.C. 41704, note.
The summary of the ANPRM comments, the Departments responses to the ANPRM comments, and the Departments proposal is set forth below.
B. Proposals 1. Length of Delay Triggering Refund Requirement The ANPRM
In the ANPRM, the Department sought comment on how to determine the appropriate length of delay that would trigger the refund requirement for checked baggage. The provision at 49
U.S.C. 41704, note prescribes the minimum lengths of delay that would trigger the refund requirement as not later than 12 hours for domestic flights and not later than 15 hours for international flights. It also provides the Department the flexibility to modify these timeframes to up to 18 hours for domestic flights and up to 30 hours for international flights if the Department determines that the 12-hour or 15-hour standards are infeasible and would adversely affect consumers in certain cases. The Department asked why a particular length of time within this timeframe would be more appropriate than other times. The Department also asked if there is a reason to establish a secondary set of criteria, such as the flight duration or the frequency of service to determine the appropriate timeframe.
Comments Received According to comments submitted in response to the ANPRM, airlines generally support adopting the maximum lengths of delay allowed by the statute 18 hours for domestic flights and 30 hours for international flights.
The airlines believe that any DOT
requirement should provide carriers maximum flexibility to take into account the multiple variables that could impact their operations. Some airline commenters express concerns about the difficulties they encounter in delivering delayed bags for international long-haul flights they operate in low frequencies, which they state would take 2448 hours. The National Air Carrier Association NACA, Allegiant Air, and Spirit Airlines specifically expressed concerns about the
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difficulties Ultra Low-Cost Carriers ULCC face in transporting delayed bags due to their low frequency of scheduled flights and the lack of interline agreements with other carriers.
The American Society of Travel Advisors ASTA and Consumers Union are in favor of adopting the minimum lengths of delay prescribed in the statute because they believe the default timeframes set by the statute are necessary to mitigate consumer harms resulting from delayed baggage and any extension of the default timeframes would adversely affect consumers.
Some individual commenters suggested that the Department should adopt a tiered standard based on not only domestic versus international flights, but also on the length or frequency of the flights.
DOT Response The Department proposes to require an airline to refund an ancillary fee paid by a passenger for a checked bag if the airline fails to deliver the bag to the passenger within 12 hours of arrival for domestic flights. The note in 49 U.S.C.
41704 provides that the Department shall issue a rule that requires carriers to promptly provide a refund for any ancillary fees paid by a passenger for checked baggage if a carrier fails to deliver the bag to passengers within 12
hours of arrival for domestic flights.
There is an exception if the Department determines that the 12-hour standard is not feasible and would adversely affect consumers in certain cases. The Department believes it is feasible for airlines to return a bag within 12 hours for domestic flights because airlines have tracking systems in place to identify the location of bags and airlines should be able to place delayed bags on the next available flight, often resulting in bags being delivered within 12 hours for domestic flights.
With respect to international flights, the Department proposes to allow carriers up to 25 hours to deliver checked bags without having to issue a refund because the Department considers it not feasible, in many cases, for airlines to return a bag in less time and believes a timeframe that is shorter than 25 hours would adversely affect consumers. The statute provides the Department discretion to extend the timeframe for when carriers must refund fees paid by passengers for delayed checked baggage from 15 hours to up to 30 hours of the arrival of international flights if the Department makes a determination that 15 hours is not feasible and would adversely affect consumers in certain cases. The Department considered and was
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