Category - Airlines
Rule to Make Airline Pricing More Transparent Just Got Blocked
A recent court ruling has blocked an attempt to make airline pricing more transparent, USA Today reported.
On Tuesday, a U.S. appeals court shot down a rule established last year by the Biden administration which would have required upfront disclosure of airline service fees and additional costs. The court denied the petition because they said the Transportation Department (USDOT) had not followed the proper procedural guidelines.
The ruling stated that, while the department has the authority to put into effect fee disclosure protocols that specifically address "unfair or deceptive practices being conducted by airlines," it should have consulted with airlines and allowed them to respond to a USDOT study examining the impact of fee disclosure rules.
The rule has been sent back to USDOT, with the court allowing them time to address the error and presumably refile. However, considering the Trump administration now controls the department, it’s unclear whether the fee disclosure rules process will proceed at all.
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Airlines for America, the D.C. lobbying firm previously known as the Air Transport Association of America, hailed the court’s ruling as a victory for the airline industry and, in their opinion, consumers, as well. The group said that fee disclosure rules "embod[y] regulatory overreach that would confuse consumers who would be inundated with information that would only serve to complicate the buying process."
USDOT said the rules are intended to put an end to "bait-and-switch tactics some airlines use to disguise the true cost of discounted flights.” Last April, the department announced that passengers were overpaying a combined $543 million annually in hidden fees for things like "higher fees at the airport to check a bag," which in turn generates more revenue for airlines.
That same month, the department issued regulations calling for airlines and employees to disclose service fees upfront, included within the airfare, so that customers could avoid unanticipated fees. But several airlines, including American, Delta, United, JetBlue, and Alaska, sued to overturn the rules. They were joined in the suit by Airlines for America and the International Air Transport Association.