Several major U.S. airlines are suing the U.S. Department of Transportation over its recent requirement for airlines to disclose ancillary fees in advance, marking the latest clash between airlines and the Biden administration.
According to Reuters, copies of the lawsuit seen by the media show that last Friday, May 10, industry group Airlines for America (A4A) and major U.S. airlines, including American Airlines, Delta Air Lines, United Airlines, JetBlue Airways, Hawaiian Airlines, and Alaska Airlines, jointly filed this lawsuit with the U.S. Court of Appeals for the Fifth Circuit.
The Department of Transportation had issued final regulations last month, requiring airlines and ticket agents to disclose service fees when publishing airfare prices, claiming this would help consumers avoid unnecessary or unexpected charges.
In a statement released on Monday, the airline industry group stated that the new regulations by the Department of Transportation would confuse consumers and that the department’s attempt to regulate private enterprise operations in a thriving market exceeded its authority.
The Department of Transportation stated that baggage fees or flight change fees “must be disclosed separately at the time of providing fare and schedule information on the airline’s online platform, rather than through a hyperlink.”
The rule mandates airlines to inform consumers that seats are guaranteed and no additional fees are required. Airlines must provide the following notice: “Seat fees are included in your ticket price. You do not need to purchase a seat assignment to travel.”
The Department of Transportation also mentioned that the regulation would put an end to “bait-and-switch tactics some airlines use to mask the true cost of discounted flights.” The new rule prohibits airlines from promoting discounts on a “low basic fare” that does not include all the fees airlines are required to charge.
In the lawsuit, airlines described the rule as “arbitrary, capricious, an abuse of discretion, and otherwise not in accordance with the law.”
The U.S. Department of Transportation did not immediately comment. The airline industry group bringing the lawsuit referred to the rule as a poor solution to addressing the issue at hand.