The Future of the Civil Aeronautics Board's Consumer Protection Functions

GAO presented testimony on its ongoing review of the future of the Civil Aeronautics Board's (CAB) consumer protection functions. The sunset provisions of the Airline Deregulation Act of 1978 neither provide for the survival nor the transfer of the CAB consumer protection regulations. Officials from airlines, trade associations, State agencies, and consumer organizations who were interviewed by GAO generally agreed that legislation was needed to clarify the rights and obligations of consumers and the airlines. The following issues were of most concern to the officials: (1) whether to repeal or continue the CAB consumer protection regulations; (2) if regulation should continue, what agency should regulate; (3) the future and scope of Federal preemption; and (4) the proper jurisdiction for the oversight of antitrust immunity and joint air carrier agreements. The majority of the officials interviewed stated that, to capitalize on the Department of Transportation's expertise and to avoid fragmentation of responsibilities across several agencies, they favored transferring the CAB consumer protection functions to Transportation. GAO stated that, while its analysis of the issues is not complete and it is not taking a position on the matter, there is a strong case in support of this view.