U.S. Transportation Department says 3,700 employees furloughed

WASHINGTON (Reuters) – The U.S. Transportation Department said Friday that 3,700 employees had been temporarily furloughed after Congress failed to reauthorize surface transportation programs before a deadline that expired early Friday.

A department spokesperson said the agency is “taking every step we can to mitigate the impacts of this temporary lapse in authorization.” Safety critical employees are exempt from the furloughs. Aides said U.S. lawmakers are considering a 30-day surface transportation extension as negotiations continue over a pair of infrastructure and spending bills.

(Reporting by David Shepardson)

U.S. to propose new rules requiring refunds for delayed airline bags -source

By David Shepardson and Diane Bartz

WASHINGTON (Reuters) -The Biden administration will soon propose new rules to require passenger airlines to refund fees for bags that are significantly delayed and refunds for services like onboard Wi-Fi that does not work, a source told Reuters.

Under existing Transportation Department rules, passengers are entitled to a fee refund if bags are lost, but not when delayed. Under the proposed Transportation Department rule to be released in the coming days, a “significantly delayed checked bag” is one not delivered to the passenger within 12 hours for domestic itineraries and within 25 hours for international itineraries.

Airlines for America, a group representing major airlines, did not immediately comment on Friday.

The administration proposal would also require airlines to promptly refund fees – such as for advance seat selection, Wi-Fi and other flight services – if the passenger does not receive the service or it does not work.

Under a forthcoming executive order on competition, President Joe Biden is directing the Transportation Department “to engage in a series of rulemakings to protect airline passengers and to promote fair competition in the airline industry,” the source told Reuters.

U.S. airlines collected approximately $5.8 billion in baggage fees and $2.8 billion in change and cancellation fees in 2019, up from just $464 million in baggage fees and $915 million in change and cancellation fees in 2007.

The Transportation Department also intends to issue a separate proposed rule in the coming months to require upfront disclosure of baggage fees, change fees and cancellation fees at the time of purchase of a plane ticket.

The Biden administration is holding a call on Friday to discuss the issue with major airlines, two other sources said.

Biden’s executive order will also direct the department to consider the fee disclosure rule, the source said, saying it would help consumers avoid being surprised by ticket fees and allow more accurate comparison shopping for flights.

Reuters first reported the planned executive order earlier this week.

(Reporting by David Shepardson in Truro, Mass.; writing by Diane Bartz in Washington; Editing by Dan Grebler)

Traffic deaths in U.S. up by 7.2 percent in 2015: Transportation Dept.

A red traffic light stands in front of the U.S. Capitol building in Washington

WASHINGTON (Reuters) – Last year 35,092 people were killed in traffic crashes in the United States, a 7.2 percent increase over 2014 that ended a five-decade trend of declining fatalities, the U.S. Transportation Department said.

Data “showed traffic deaths rising across nearly every segment of the population,” the department said in a statement.

(Reporting by Mohammad Zargham; Editing by Chris Reese)