Several US airlines are joining forces in a lawsuit challenging the Biden administration’s recent rule requiring carriers to display the full cost of a flight – including important additional fees. important – prepaid.
The U.S. Department of Transportation exceeded its authority to issue the rule late last month, American Airlines, Delta Air Lines, United Airlines, Alaska Airlines, Hawaiian Airlines and JetBlue argued. Airlines for America, the US airline industry’s lobbying group, also participated. Notably, Southwest Airlines refused to participate in the lawsuit.
The lawsuit against DOT, filed Friday in the 5th U.S. Circuit Court of Appeals, calls for a judge to overturn the ruling. Airlines describe this regulation as “arbitrary”, “abuse of discretion” and “contrary to the law”.
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Recent DOT rule challenge
Last month, DOT issued two separate regulations.
Airlines will be required to automatically refund passengers in the event of cancellations or significant delays. They will also have to refund additional paid services like in-flight Wi-Fi when the paying customer doesn’t actually receive the service (like in the case of Wi-Fi problems).
Those measures could eventually be codified in the Federal Aviation Administration reauthorization bill now making its way through Congress.
The second DOT rule is the one at issue in this lawsuit. It would require airlines and third-party ticket sellers to promptly disclose material ancillary fees when a flight price is first displayed.
According to the regulations, by the end of April 2025, airlines will have to more clearly disclose the costs of first and second checked bags, large carry-on bags, and any immediate change or cancellation fees. immediately – when the customer sees the ticket price for the first time.
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Airlines will also have to use DOT boilerplate language to explain to passengers that they will be assigned seats, even if they do not choose to pay for a seat.
Related: Here are the airline passenger rights you need to know during the travel crisis
Airlines decry regulations
Leading U.S. airline industry trade groups argue that the ancillary fee rule is a “poor solution to the problem.” Ultimately, the rule will “confuse customers” and “complicate the purchasing process,” Airlines for America said.
“DOT’s efforts to regulate private business in a thriving market exceed its authority,” the organization said in a statement to TPG Tuesday. “Airlines have gone to great lengths to help their customers understand these fees.”
The Biden administration responded
For its part, DOT is not backing down. It told TPG it would “vigorously defend” the regulation; According to the DOT, the rule protects travelers from “hidden trash fees” and helps consumers see the full price of a flight in advance.
“Many airline passengers will be disappointed to learn that the airline lobby is suing to block these common-sense protections,” the agency said in a statement.
President Joe Biden has done it break about so-called “garbage fees”, a central part of his tenure – focusing on airlines and hotels, along with sectors across the economy – in the name of consumer protection .
The government has also taken a tougher regulatory stance on other aspects of the aviation industry. Under President Biden, the US Department of Justice successfully blocked the Northeast Alliance between American and JetBlue, as well as JetBlue’s proposed merger with Spirit Airlines – both on antitrust grounds.
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