Airlines challenge Biden's administrative fee disclosure rule


Aerial view of United Airlines passenger planes docked at a terminal at Newark Airport in Newark, New Jersey, on May 11, 2024.

Charly Triballeau | afp | fake images

Major airlines and an industry trade association asked a federal appeals court to throw out a new Department of Transportation rule requiring advance disclosure of additional fees when booking flights.

The challengers: the airlines for America trade group and Alaska, American, Delta, Hawaiian, JetBlue and United airlines, argue that the DOT exceeded its legal authority when it published the rule in late April and that the rule is “arbitrary, capricious” and an “abuse of discretion.”

The petition for review was filed in the U.S. Court of Appeals for the Fifth Circuit on Friday night.

The Biden administration introduced the airline fee disclosure rule in September 2022. It requires airlines and online travel agencies to disclose fees for seat selection, checked baggage and other add-ons in advance along with the fare. air, instead of adding costs at checkout based on customer preferences. selections.

“You should know the total cost of your ticket, right when you compare prices,” President Joe Biden said at the time.

Airlines for America said in a statement to CNBC on Monday that the rule “will confuse consumers” and “complicate the purchasing process.”

“Airlines already provide consumers with complete information about all fees associated with air travel before purchasing a ticket,” the group said in the statement. “DOT's attempt to regulate private business operations in a thriving market is beyond its authority… DOT's auxiliary rule is a bad solution in search of a problem.”

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