US Airlines File Lawsuit Against Biden Administration Over Fee Transparency Rules

14.05.2024 - 19:41 / travelpulse.com / Joe Biden / North America / Zane Kerby / Donald Wood

Several major airlines in the United States have filed a lawsuit against the Department of Transportation (DOT) over the new fee transparency rules approved by President Joe Biden and his administration in April.

According to Reuters.com, Airlines for America (A4A) filed the lawsuit in the U.S. Fifth Circuit Court of Appeals on Friday, with support from major airlines, including Alaska, American, Delta, Hawaiian, JetBlue and United.

An A4A spokesperson said the group is concerned the new regulations will “confuse consumers” and that the DOT’s fee transparency rule is an “attempt to regulate private business operations in a thriving marketplace is beyond its authority.”

The airlines’ lawsuit also claims the mandate is “arbitrary, capricious, an abuse of discretion and otherwise contrary to law."

In April, the Biden administration revealed that American carriers must provide “automatic cash refunds” within days of a flight being delayed significantly or outright canceled. The DOT estimates the new rules will save American travelers more than $500 million annually.

To avoid confusion, the DOT now universally defines a significant delay as a plane that takes off at least three hours after the scheduled departure time for domestic flights and six hours for international service. The new rules also allow impacted passengers to reject the travel credits or alternative flights offered by airlines in the case of a delay.

As for baggage fees and refunds, the DOT now gives carriers 12 hours to return checked baggage to customers on domestic flights and 30 for international service. Otherwise, the impacted travelers will be eligible for a refund. Passengers can also request a refund if the airline fails to provide advertised extras, such as seat selection or internet connection.

In the days that followed the announcement of the new rules, the American Society of Travel Advisors (ASTA) announced its disappointment. CEO Zane Kerby said, “the Department of Transportation made a profound error in this final rule,” and the mandate could “harm the small travel agencies who book air tickets.”

For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.