Major US airlines, including American Airlines, Delta Air Lines, United Airlines, JetBlue Airways, Hawaiian Airlines, and Alaska Airlines, are suing the Transportation Department over a new rule that requires upfront disclosure of airline fees. This dispute is the latest clash between air carriers and the Biden administration. The lawsuit was filed in the US Fifth Circuit Court of Appeals, claiming that the department’s rule would confuse consumers and overstep its authority by attempting to regulate private business operations in a competitive marketplace.
The Transportation Department issued final rules last month that require airlines and ticket agents to disclose service fees alongside airfare to help consumers avoid unneeded or unexpected fees. The rule stipulates that “junk fees”, such as baggage fees or flight changes fees, must be individually disclosed when fare and schedule information is provided on an airline’s online platform, without the use of hyperlinks. Airlines are also required to inform consumers that seats are guaranteed and that they are not required to pay extra for a seat assignment to travel. The rule aims to put an end to “bait-and-switch tactics” used by some airlines to disguise the true cost of discounted flights.
The lawsuit filed by the airline group against the Transportation Department refers to the rule as “arbitrary, capricious, an abuse of discretion, and otherwise contrary to law.” The airlines’ argument against the rule is that it is a bad solution in search of a problem. The group believes that the rule would create confusion among consumers and go beyond the department’s authority in regulating private business operations. There has been no immediate comment from the Transportation Department on the lawsuit filed by the airlines.
Overall, the dispute between major US airlines and the Transportation Department over the new rule requiring upfront disclosure of airline fees highlights the ongoing tensions between air carriers and the Biden administration. The rule aims to empower consumers by providing them with more transparency regarding airline fees and preventing airlines from using deceptive advertising practices. However, airlines argue that the rule is unnecessary, confusing, and exceeds the department’s authority. This clash is likely to continue as both sides defend their positions in court and advocate for their respective interests in the airline industry.
In response to the Transportation Department’s final rules, major US airlines have taken legal action by filing a lawsuit in the US Fifth Circuit Court of Appeals. The airlines, including American Airlines, Delta Air Lines, United Airlines, JetBlue Airways, Hawaiian Airlines, and Alaska Airlines, are challenging the rule that requires disclosure of service fees alongside airfare. The group believes that the department’s attempt to regulate private business operations in a competitive marketplace is beyond its authority and would create confusion among consumers.
The rule issued by the Transportation Department requires airlines to disclose “junk fees” such as baggage fees or flight changes fees when providing fare and schedule information to consumers. Airlines are also obligated to inform consumers that seats are guaranteed and that they do not need to pay extra for a seat assignment to travel. This requirement aims to prevent airlines from using deceptive advertising practices and provide greater transparency to consumers regarding the true cost of flights. The airlines’ lawsuit against the rule argues that it is arbitrary, capricious, and contrary to law, presenting an ongoing challenge between the airlines and the Biden administration over regulatory measures in the airline industry.
