WASHINGTON- Major US airlines are taking legal action against the U.S. Transportation Department regarding a new regulation mandating upfront disclosure of airline fees, marking the latest confrontation between air carriers and the Biden administration.
Airlines for America, in conjunction with American Airlines (AA), Delta Air Lines (DL), United Airlines (UA), JetBlue Airways (B6), Hawaiian Airlines (HA), and Alaska Airlines (AS), filed a lawsuit against the U.S. Department of Transportation (USDOT) in the U.S. Fifth Circuit Court of Appeals late last Friday, as per a copy of the lawsuit obtained by Reuters.
US Airlines Sue Biden Administration
The USDOT finalized regulations last month stipulating that airlines and ticket agents must reveal service fees alongside airfare, to assist consumers in avoiding unnecessary or unforeseen charges.
In a statement on Monday, the airline consortium asserted that the department’s regulation would lead to consumer confusion and argued that its “attempt to regulate private business operations in a thriving marketplace exceeds its jurisdiction.”
The airlines’ lawsuit, which was not previously disclosed, denounces the rule as “arbitrary, capricious, an abuse of discretion, and otherwise contrary to law.”
Junk Fees of $543 Million Annually
According to the agency, consumers are currently overspending by $543 million annually on fees, with airlines benefiting from these additional revenues by imposing surprise fees on travelers who then incur higher costs at the airport, particularly for baggage check-in.
Major airlines typically impose elevated fees for baggage check-in if travelers fail to pay in advance or wait until the time of their flight. Earlier this year, several prominent U.S. airlines raised fees for checked baggage.
The USDOT stipulated that fees for baggage or flight changes must be explicitly disclosed the first time fare and schedule information is provided on the airline’s online platform and cannot be obscured through a hyperlink.
Additionally, the regulation aims to eliminate deceptive pricing tactics employed by some airlines, preventing them from advertising promotional discounts off a “low base fare” that excludes all mandatory carrier-imposed fees.
Airlines Already Paying Fees
The airline coalition criticized the rule as “an unnecessary solution to a nonexistent problem.” Southwest Airlines (WN), which previously voiced approval for certain aspects of the US DOT proposal, opted not to participate in the legal action.
The airline coalition asserted that airlines already offer comprehensive fee disclosure to consumers before ticket purchase. In 2022, U.S. airlines amassed nearly $6.8 billion in baggage fees, followed by $5.5 billion in the first nine months of 2023.
The rule mandates airlines to clarify to consumers that seats are guaranteed and additional purchases are not obligatory. Airlines must provide the notice: “A seat is included in your fare. You are not required to purchase a seat assignment to travel.”
The airlines did not contest a separate US DOT rule, finalized last month, which mandates automatic cash refunds for canceled flights when passengers opt against rebooking.
President Joe Biden criticized airlines for delay tactics on refunds and imposition of extraneous fees, asserting the mandate will shield passengers “from surprise fees.”
Stay tuned with us. Further, follow us on social media for the latest updates.
Also Read: US Airlines, Including American, United, Delta, and Southwest, want you to Dress Properly – Aviation A2Z
Join us on Telegram Group for the Latest Aviation Updates. Subsequently, follow us on Google News.
The post US Airlines Sues Biden Administration Over New Junk Fee Rules appeared first on Aviation A2Z.