Several of the nation's largest airlines are challenging a new Biden administration rule that requires them to disclose certain fees as part of the upfront cost of airfare. The government calls these fees added to baggage and reservation changes “surprise junk fees.”
The industry group Airlines for America and six airlines said in a petition filed Friday with the U.S. Court of Appeals for the Fifth Circuit that the ancillary fee rule is “arbitrary and capricious” and outside the Federal Circuit's authority. They called for the rule to be rescinded. Department of Transportation.
Airlines participating in the petition include American Airlines, Delta Air Lines, United Airlines, JetBlue Airways, Alaska Airlines, and Hawaiian Airlines. Airlines for America said in a statement Monday that implementing the rule will only confuse customers and complicate ticket purchases.
“DOT's supplementary rule is a poor solution to exploring the problem,” the statement said.
The rule was finalized last month after an 18-month process and is scheduled to go into effect on July 1. The Department of Transportation says the rule will save consumers more than $500 million a year. Airlines collected nearly $5.5 billion in baggage fees last year, according to the Bureau of Transportation Statistics.
In a statement responding to the lawsuit, the Department of Transportation said it would “vigorously defend rules that protect people from hidden junk fees and ensure that travelers can see the full price of their tickets before purchasing them.” said. “Many air travelers will be disappointed to learn that airline lobbies are suing to end these common-sense protections.”
Under the rules, airlines and travel booking sites will be required to provide fees for checking a first or second bag, carrying a carry-on bag, changing a reservation, or canceling a reservation at the time of initial fare offer. There is. Several airlines have recently increased their checked baggage fees. Some prices vary by flight.
John Blayault, vice president of public policy for the Consumer Federation of America, a consumer advocacy group, said he was disappointed but not surprised by the lawsuit. He said the benefit of the rule for passengers is that it would make it easier for travelers to make “apples-to-apples comparisons” of airfares.
“From now on, you're going to get a more accurate cost up front,” he says.
In announcing the rule, the Biden administration said it would end “discount bait-and-switch tactics” that can lead consumers to believe they are getting a better deal than the final price before fees. According to Airlines for America, airlines have already made significant investments in websites and apps to make it easier for passengers to book tickets tailored to their specific needs, and prices are made public before purchase. That's what it means.
“Airlines are making significant efforts to make their customers aware of these charges,” the airline said in a statement. “In addition to the disclosures required by existing DOT regulations, airlines use competitive advertising when promoting their loyalty programs, highlighting discounts and benefits on ancillary fares.”
In comments submitted as part of the new rulemaking process, Airlines for America argued that airlines are motivated to provide excellent service by their own success, not by government mandate. . The rule would “mandate messy and clunky search protocols that cause delays and unclear search results that consumers neither want nor need,” they said.
The Biden administration's campaign against “junk fees” extends beyond airlines to include late credit card fees, resort fees, cable company fees and convenience store fees for live event tickets.
