Airlines Sue Department of Transportation Over New Fee Disclosure Rules
Major airlines have initiated legal action against the federal government regarding new regulations mandating the upfront disclosure of all airline fees, including those for checked and carry-on bags, as well as change and cancellation fees.
Filed on Friday in the U.S. Fifth Circuit Court, the lawsuit involves carriers Alaska, American, Delta, Hawaiian, JetBlue, and United, along with industry lobby Airlines For America. They argue that the Department of Transportation (DOT) overstepped its bounds in implementing the new rule, labelling it as an “arbitrary, capricious” alteration.
Transportation Secretary Pete Buttigieg announced the rule change on April 24, emphasizing the importance of transparency for consumers in making informed decisions. According to the Department of Transportation’s estimates, the rule change could potentially save consumers half a billion dollars annually.
In response to the announcement, Airlines For America issued a statement expressing concerns about the potential confusion the new rule may cause among consumers, asserting that it could complicate the purchasing process. They argued that the DOT’s attempt to regulate private business operations in a competitive market exceeds its authority.
The statement further criticized the rule as a “bad solution in search of a problem.”
As of now, the Department of Transportation has not provided a comment in response to the lawsuit.
