US Airlines Sue Transportation Department over New Fee Disclosure Regulations

SOURCE news.bloomberglaw.com
Major US airlines and their lobbying group sued the US Transportation Department over new regulations mandating up-front disclosure of certain fees. The airlines claim the rules are arbitrary and an abuse of discretion, while the department says they will save travelers money by avoiding surprise fees.

Key Points

  • The lawsuit was filed by Airlines for America and major US carriers like American Airlines, Delta Air Lines, United Airlines, and JetBlue Airways.
  • The regulations require clear communication of extra charges for checked luggage, carry-on bags, and reservation changes upfront.
  • The Transportation Department has also issued rules for automatic refunds for canceled or significantly delayed flights.

Pros

  • New regulations could save travelers over half a billion dollars a year by avoiding surprise fees.

Cons

  • Airlines claim the new rules are arbitrary, capricious, and an abuse of discretion.
  • Airlines for America stated that the new rules will greatly confuse consumers.