Federal appeals court throws out Bidens airline fee disclosure rule
A federal appeals court has thrown out a Biden administration regulation that would have required airlines and ticket agents, including travel advisors, to inform consumers about airlines bag and change fees up front.
In the unsigned opinion, the U.S. Court of Appeals for the Fifth Circuit in New Orleans ruled that the Biden administrations Department of Transportation failed to comply with public-comment requirements laid out in the Administrative Procedures Act before issuing the full-fare rule in April 2024. In particular, the public did not have a chance to comment on one of the studies used by the DOT to justify the rule.
"Given that DOT relied upon the study to justify its cost-benefit analysis, the procedural defect compromised the entire regulation. Thus, we must vacate the entire rule," the court wrote.
"Given that DOT relied upon the study to justify its cost-benefit analysis, the procedural defect compromised the entire regulation. Thus, we must vacate the entire rule," the court wrote.
The regulation was the subject of a lawsuit filed in May 2024 by trade groups Airlines for America, IATA and the National Air Carrier Association, as well as six U.S. airlines. The Fifth Circuit stayed the rule in July 2024, and it never took effect.
The rule did not have the support of the Trump administrations DOT, which last September said that it would begin a formal process this March to rescind it. The Fifth Circuit opinion, published Feb. 3, noted that that the DOT had conceded in oral and written arguments that it had violated the Administrative Procedures Act.
The DOT said Wednesday that it is pleased with the appellate courts decision to vacate the rule. Airlines for America said likewise.
"We are pleased with this legal victory and believe the court made the right decision to vacate the rulemaking," the trade group said. "Airlines already disclose all fees associated with air travel and will continue to do so."
ASTA had supported the rules primary intent of providing price transparency early in the online booking process, but had opposed requirements that travel advisors disclose fees in all offline booking transactions, even with regular clients who are already familiar with them.
Travel Weekly has reached out to ASTA for comment.