Numerous airlines have criticized the U.S. Department of Transportation for its mandate requiring them to more clearly display so-called hidden “junk fees” and have filed a lawsuit challenging the new rule.
The DOT mandate, which ended April 24, will require travel agents and airlines to disclose upfront whether customers will be charged booking change fees, flight cancellation fees or baggage screening fees. Airlines will also have to list any additional costs on the web page where they show flight price quotes. The rule will help save airline customers over 543 million dollars annually according to DOT and scheduled to take effect July 1.
American airline lobbying group Airlines for America and United, American, Delta, JetBlue, Alaska and Hawaiian filed the lawsuit. lawsuit challenging that rule Friday in the 5th U.S. Circuit Court of Appeals. He argues that the rule “exceeds the authority of the Department” and “that it is arbitrary, capricious, an abuse of discretion, and otherwise contrary to law.”
Airlines for America argues that the agency’s mandate will “greatly confuse consumers, who will be inundated with information that will only complicate the purchasing process,” the industry trade group said. Luck in the statement. “The DOT auxiliary rule is a poor solution in search of a problem.”
The DOT denies Airlines for America’s claims, saying airline customers will be disappointed by the attempt to take away transparency from the airline booking process.
“We will vigorously defend our rule that protects people from hidden, unwanted fees and ensures that travelers can see the full cost of a flight before purchasing a ticket,” DOT said. Luck in the statement.
Changes that have been happening for years
US Democrats have led the campaign for years to rein in rising airline fees, with Senators Edward J. Markey and Richard Blumenthal introducing Legislation to Stop Airlines from Imposing Ridiculous (FAIR) Fees in 2016 and then reintroduced it three years later, arguing that the fees were essentially profiteering by airlines at a time of lower fuel costs and success in the airline industry.
President Joe Biden has been trying to cement rules on hidden airline fees since the beginning of his term, especially after those fees have grown exponentially over the past two decades. Per news bulletin Under the Fair Fees Act of 2019, the world’s 10 largest airlines earned $35.2 billion in fees in 2018, up from just $1.2 billion in 2007. The problem has become even more urgent. during a pandemic, with travelers concerned about seat sharing becoming more sensitive to seat selection fees. In July 2021, the DOT implemented a rule requiring refunds for downed online internet and severe baggage delays.
The Biden administration has argued that increased transparency will not only save customers money, but also help increase competition in the airline industry. Airlines for America say they need to step up competition was unnecessary and “intense competition in the U.S. airline industry has resulted in unprecedented levels of availability and affordability, benefiting customers at every level.”
“My administration is also cracking down on airlines,” Biden said in September 2022. “You need to know the full cost of your ticket right when you compare prices, starting with where you are – which airline you’re going to be flying on, so you can choose the ticket that’s actually the best deal for you.”
Pressure on airlines increases as 40 state attorneys general signed a letter to Congress that same month, calling for legislation to combat hidden costs.
“Americans are justifiably frustrated that federal government agencies responsible for overseeing airline consumer protection are unable or unwilling to hold airlines accountable and promptly investigate complaints,” the letter said.