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U.S. Airlines Challenge DOT Rulings Under New Administration

U.S. Department of Transportation
Credit: Sipa USA / Alamy Stock Photo

U.S. airlines are contesting certain rulings handed down by the U.S Transportation Department (DOT) under the Biden administration.

This includes calls to vacate a rule on ancillary fee disclosure, requests to review a rule regarding wheelchairs, and a challenge to new beyond-perimeter slot awards at Ronald Reagan Washington National Airport (DCA).

Additionally, Southwest Airlines, the U.S. Justice Department (DOJ) and new Transportation Secretary Sean Duffy are “engaged in discussions about a potential resolution” for a DOT-filed lawsuit against the carrier, according to a new filing. The suit, levied against Southwest on Jan. 15 for “illegally operating multiple chronically delayed flights,” had been seeking maximum civil penalties—intended to send “a message to all airlines that the department is prepared to go to court in order to enforce passenger protections,” former Transportation Secretary Pete Buttigieg said at the time.

Under Buttigieg, DOT was focused on advancing “the largest expansion of airline passenger rights,” championing a flurry of regulations around issues including family seating guarantees, automatic cancellation refunds, compensation for controllable delays and cancellations, and ancillary fee disclosure.

A ruling governing the latter was intended to go into effect in 2024, seeking to mandate “clear and conspicuous” disclosure of such fees at the outset of an itinerary search. However, DOT’s authority for the mandate was quickly challenged and a stay was granted before an appeals court panel of judges in January remanded the rule back to DOT, citing procedural fault. Petitioners now contend that the panel’s decision leaves in place a rule that “would upend the way airlines interact with their customers, at great cost, and with no demonstrated benefit,” stating that the remand “sends inconsistent and confusing messages to DOT on remand about what to do next.”

Airlines for America (A4A), Alaska Airlines, American Airlines, Delta Air Lines, Hawaiian Airlines, JetBlue Airways, United Airlines, Spirit Airlines, the National Air Carrier Association, and the International Air Transport Association are named as petitioners. They seek an amended opinion vacating the rule.

“DOT’s Rule is a solution in search of a problem ... complying will cost airlines many millions of dollars,” the petition states.

In another request, A4A, American, Delta, JetBlue, Southwest Airlines, and United challenge DOT’s “Ensuring Safe Accommodations for Air Travelers with Disabilities Using Wheelchairs” regulation. The airlines argue that some pieces exceeded DOT’s statutory authority, asking the 5th Circuit Court to “hold unlawful and set aside” the rule in whole, or in part. Among its provisions, the rule clarified airline obligations for mishandled mobility devices, and codified certain rights and protections for air travelers with disabilities.

Meanwhile, Spirit is trying to join a Frontier Airlines Petition for Review requesting that the recent award of beyond-perimeter slots at DCA be vacated and remanded.

The slot awards were finalized in December 2024, despite objections from JetBlue Airways, Frontier, and Spirit regarding their eligibility. Made available through the 2024 FAA Reauthorization Act, terms dictated that only one “limited incumbent” would be eligible for consideration, an airline with fewer than 40 slots at DCA, excluding slot exemptions. While the limited incumbent slot was awarded to Alaska Airlines, the two ULCCs believe its codeshare with American Airlines should disqualify the carrier from the category. Alaska has defended its selection.

“Alaska and American together held over 520 slots or slot exemptions at DCA—hundreds more than the 20 slot or slot exemption cap to qualify as a limited incumbent,” writes Spirit in a brief. “By awarding the exemptions to an airline closely aligned with the largest slot-holder at DCA, DOT effectively nullified Congress’s intent to foster genuine competition by empowering truly smaller carriers ... While Frontier is not a limited incumbent, neither is Alaska,” it adds.

Spirit asks the court to vacate at least the limited incumbent slot exemption, and “at a minimum” allow it and Frontier to compete head-to-head.

Spirit’s move to intervene was challenged by Frontier, contesting its ex-merger partner’s timing, while Spirit has pushed back. Frontier’s reply is due April 7.

Christine Boynton

Christine Boynton is a Senior Editor covering air transport in the Americas for Aviation Week Network.