Major airlines have initiated a lawsuit against a new rule that mandates them to disclose additional fees upfront. This action has elicited a strong reaction from Transportation Secretary Pete Buttigieg.
What Happened: The lawsuit was launched by Airlines for America, a trade association, and several major airlines, including Delta Air Lines DAL, American Airlines AAL, United Airlines UAL, JetBlue Airways Corp. JBLU, Hawaiian Airlines HA, and Alaska Airlines ALK, reported The Hill.
The airlines are contesting the new rule, arguing that revealing extra fees before ticket purchase will “greatly confuse consumers” and “complicate the buying process.”
Buttigieg, however, expressed astonishment at the lawsuit, stating, “We just issued a rule requiring airlines to inform you, before you buy a ticket, of fees they will charge you. Now, the airline lobby is suing us, saying that if you have the right to that information it will ‘confuse' you. For once, I am speechless."
The Department of Transportation has pledged to “vigorously defend” the rule, which is intended to protect consumers from “hidden junk fees” and ensure full price transparency before ticket purchase.
The Biden administration finalized the rule last month, with Buttigieg asserting that it will save passengers over half a billion dollars a year in unnecessary or unexpected fees.
Why It Matters: This lawsuit comes after a series of confrontations between the airlines and the Biden administration. The Biden-Harris Administration had previously enforced a rule requiring airlines to swiftly issue automatic cash refunds to passengers.
In May it was reported that the Biden administration demanded that airlines disclose, upfront, the fees that they impose on fliers.
Photo Courtesy: Rich Koele On Shutterstock.com
Engineered by Benzinga Neuro, Edited by Shivdeep Dhaliwal
The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
