Major airlines and an industry trade association have asked a federal appeals court to strike down a new rule requiring the Transportation Department’s earlier disclosure. additional charges at the time of booking the flight.
Competitors – American Airlines trade group and Alaska, american, Delta, Hawaii, JetBlue and United airlines — alleges that the DOT exceeded its statutory authority when it issued the rule in late April and that the rule is “arbitrary, capricious” and an “abuse of discretion.”
The petition for review was filed late Friday with the U.S. Court of Appeals for the Fifth Circuit.
The Biden administration presented Airline fee disclosure procedure in September 2022. It requires airlines and online travel agencies to disclose fees for seat selection, checked baggage and other extras in advance with the airline ticket, rather than adding charges at check-in based on the customer’s preferences.
“When doing comparative shopping, you should know the full price of your ticket”, – the President Joe Biden he said at the time.
American Airlines said in a statement to CNBC on Monday that the rule would “confuse consumers” and “complicate the purchase process.”
“Airlines now provide consumers with full disclosure of all fees associated with air travel before purchasing a ticket,” the group said in a statement. “The DOT’s attempt to regulate private business operations in an emerging market is beyond its purview. . . . The DOT subsidiary rule is a poor solution in search of a problem.”