Airlines, including Alaska, American, Delta, Hawaiian, JetBlue and United, along with industry lobby Airlines for America (A4A), have filed a lawsuit against the federal government over new rules that require carriers to disclose all airline fees upfront. The rule includes fees for checked and carry-on bags as well as change and cancellation fees. A4A claims that the Department of Transportation (DOT) exceeded its authority in announcing the new rule and called it an “arbitrary, capricious” change.
The lawsuit was filed in the U.S. Fifth Circuit Court. According to a statement from Transportation Secretary Pete Buttigieg, who announced the new rule on April 24th, “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 DOT estimates that this rule change will save consumers half a billion dollars each year.
However, A4A argues that the ancillary fee rule by the DOT will greatly confuse consumers and complicate the buying process. A4A also calls DOT’s attempt to regulate private business operations in a thriving marketplace beyond its authority. The organization claims that this new rule is a bad solution in search of a problem.
The Department of Transportation did not immediately respond to a request for comment on the lawsuit.