U.S. airlines are suing to block the Biden administration from requiring greater transparency over fees that the carriers charge their passengers, saying that a new rule would confuse consumers by giving them too much information during the ticket-buying process.
The U.S. Transportation Department said Monday it will vigorously defend the rule against what it called �hidden junk fees.�
American, Delta, United and three other carriers, along with their industry trade group, sued the Transportation Department in a federal appeals court on Friday, saying that the agency is going beyond its authority by attempting �to regulate private business operations in a thriving marketplace.�
The airlines said the administration hasn�t shown that consumers can�t get information about fees already.
�Airlines go to great lengths to make their customers knowledgeable about these fees,� the trade group Airlines for America said Monday. �The ancillary fee rule by the Department of Transportation will greatly confuse consumers who will be inundated with information that will only serve to complicate the buying process.�
The Transportation Department announced the new rule on April 24. It would require airlines and travel agents to disclose upfront any charges for baggage and canceling or changing a reservation. Airlines must show the fees on the first website page where they quote a price for a flight.
The agency estimated that the rule will save consumers more than $500 million a year.
�We will vigorously defend our rule protecting people from hidden junk fees and ensuring travelers can see the full price of a flight before they purchase a ticket. Many air travelers will be disappointed to learn that the airline lobby is suing to stop these common-sense protections,� the department said Monday.
(AP)