Airlines file lawsuit against Department of Transportation over new regulations mandating transparency of fees

Airlines File Lawsuit against Federal Government over New Ancillary Fee Disclosure Rule

In response to the new rules that require airlines to disclose all airline fees upfront, major carriers including Alaska, American, Delta, Hawaiian, JetBlue, and United have filed a lawsuit against the federal government. The suit was filed in the U.S. Fifth Circuit Court along with industry lobby Airlines For America.

The airlines argue that the Department of Transportation exceeded its authority in announcing the new rule and called it an “arbitrary, capricious” change. They allege that the rule will greatly confuse consumers and complicate the buying process.

Transportation Secretary Pete Buttigieg announced the new rule on April 24, stating that “healthy competition requires that as a consumer you can comparison shop, which means knowing the real price of a trip before and not after you buy.” The Department of Transportation estimates that the rule change will save consumers half a billion dollars each year.

Airlines For America released a statement saying that the ancillary fee rule by the Department of Transportation is a bad solution in search of a problem. They argue that the DOT is attempting to regulate private business operations in a thriving marketplace beyond its authority. The A4A statement adds that they are committed to working with stakeholders to find solutions that protect consumers while allowing them to make informed choices about their travel experience.

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