Warning of an airline assault on price transparency and the consumer, the Business Travel Coalition (BTC), applauded a decision by the U.S. Supreme Court to refuse to deliberate the consumer protection authority of the U.S. Department of Transportation (DOT). In question was a rule requiring airlines to advertise the full cost of tickets, including government taxes and fees.
"Today's ruling is the last airline-imposed barrier to the DOT moving forward with a much-needed rulemaking that will hopefully restore true comparison-shopping of the all-in price (base fares, ancillary fees and taxes) of airline travel," BTC said.
"Airlines have refused for five years to provide travel agencies with fee information for services such as for checked bags greatly frustrating consumers ability to comparison shop," BTC said.
"Whether it is fighting DOT rule makings, contesting DOT's authority to police unfair and deceptive marketing practices at the Supreme Court or boldly proposing a new joint airline scheme to eliminate fare transparency and comparison shopping on a worldwide basis, there is a full-throated airline assault on price transparency and the consumer," said BTC Chairman Kevin Mitchell.
"Today, Allegiant, Southwest Airlines and Spirit Airlines represent Exhibit A in this offensive against consumer protections in an industry, unique, because its has so few of them. DOT is the consumers' last bastion of defense against anti consumer airline policies and behaviors," added Mitchell.
The airline industry failed in its court challenge of recently enacted federal rules that require airlines to include taxes in their advertised fares, USA Today said.
The airlines argued that DOT rules violate their free-speech rights, but the Supreme Court refused to review the challenge, a move that leaves the 2012 Department of Transportation rules in effect. DOT rules require airlines to display the total cost of a ticket including taxes.
DOT rules have previously been upheld by a federal appeals court, according to USA Today, with airlines allowed to break down the price of a ticket to show taxes and fees, but not in a way that trumps the tax-inclusive price.
The appeal that reached the Supreme Court was filed by Spirit Airlines and supported by Allegiant Air and Southwest Airlines. The case is Spirit Airlines v. U.S. Department of Transportation, 12-656.
The decision also leaves in place a new DOT rule that gives consumers 24 hours to change their mind after making a flight reservation with no penalty, the Associated Press said. Tickets bought for flights within 24 hours of departure are exempt from that requirement.
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