A group of airlines filed a lawsuit against the US government over a rule that requires more transparency about rates that they charge passengers, stating that it will only confuse consumers by giving them too much information when purchasing their tickets.
The Transportation Department warned Monday that it will vigorously defend the rule against “unnecessary hidden fees”
American Airlines, Delta, United Airlines and three other airlines, along with their umbrella association, sued the Department of Transportation on Friday in a federal appeals court, claiming the agency is exceeding its authority by trying to “regulate business operations.” private in a thriving market.”
The airlines say the government has not shown that consumers can no longer obtain that information.
“Airlines make enormous efforts to make customers aware of these fees,” the association, Airlines for America, stressed on Monday. “The ancillary fare rule developed by the Department of Transportation will greatly confuse consumers, who will be inundated with information that will only serve to complicate the purchasing process.”
The Department of Transportation announced the new rule on April 24, under which airlines and travel agents will be required to disclose early any fees they will charge for baggage, or for canceling or modifying a reservation. Airlines will have to publish fares on the first web page where the price of a ticket appears.
The agency estimates the rule will save consumers more than $500 million a year.
“We will vigorously defend our rule, which protects people from unnecessary hidden fees and allows them to find out the full price of a ticket before purchasing it. “Many travelers will be disappointed to learn that the airline lobby is suing to stop these common-sense protections,” the Department of Transportation said Monday.
Of the country’s six largest airlines, only Southwest did not join the legal challenge, which was filed before the Fifth U.S. Circuit Court of Appeals in New Orleans. Southwest said the rule will have little to no effect since the Dallas-based airline allows passengers to check two bags for free and has never charged additional fees for changing or canceling reservations.
“In general, we support the right of all airlines to set the price of their products, but we believe that fares should be disclosed clearly and consistently so consumers can make informed purchasing decisions,” Southwest said.
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