Major airlines in the U.S. are now targeting the Biden Admin's fee disclosure rule. As of writing, they are asking a federal appeals court to remove the new policy of the Department of Transportation.
Major Airlines Target Biden Admin's Fee Disclosure Rule
Alaska JetBlue, United, Delta, Hawaiian, and American Airlines are among the major airlines that oppose the Biden Administration's new fee disclosure rule.
These airlines argue that the DOT should not have published the new rule since it already exceeded its legal authority. They explained that the fee disclosure policy is capricious, arbitrary, and abuses discretion.
These major airlines filed a petition in the US Fifth Circuit Court of Appeals on Friday, May 10, to overturn the new fee disclosure rule.
They stated that passengers are already provided with complete disclosure of all fees associated with air travel before ticket purchases.
"DOT's attempt to regulate private business operations in a thriving marketplace is beyond its authority," the group of airlines added via CNBC's latest report.
Biden Admin Publishes Fee Disclosure Rule
Reuters reported that the Biden Administration published the new fee disclosure policy in April. This rule mandates airlines to provide upfront disclosure of fees, Reuters reported.
In addition, the policy requires quick cash refunds for canceled flights, inoperative services such as WiFi, and delayed baggage.
US President Joe Biden explained that the policy was introduced because Americans should know the entire cost of airline tickets when comparing shopping.
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