Major U.S Airlines Pushback Against New USDOT Ruling, Clashing with Biden Administration!

Just a few weeks ago, a new federal rule was making headlines across the US as the United States Department of Transportation announced new aviation rules. Under the new rule, travellers can now be guaranteed an automatic cash refund. This rule was largely supported by travellers, however, even upon announcement, there was pushback from airlines. Additionally, the USDOT also ruled to help travellers stay more cautious of unneeded and unexpected fees. Although the USDOT appears to be making rules to help travellers, airline pushbacks are working against these new rules.

Major Clash Between Biden Administration and Air Carriers Over New Ruling

Although travellers from all across the US were waiting for a positive ruling, it appears that there is more pushback than anticipated on some of the new federal rules. Reuters is now reporting that major U.S airlines are suing the U.S Transportation Department over one of the new rulings. The airlines pushing back on the Biden administration include United Airlines, JetBlue Airways, Hawaiian Airlines, and Alaska Airlines. This major pushback comes as the USDOT issued its final ruling just last month. According to Reuters, the ruling required lines and ticket agents to disclose service fees alongside the airfare. With this, customers could be more cautious of unnecessary or unexpected fees.

Reuters is also reporting that USDOT says consumers are overpaying around $543 million in fees annually. This means that airlines and ticketing agencies are getting additional revenues from consumers who are paying these surprise fees. The new ruling could easily help avoid these fees, helping travellers with high travel costs around the U.S.

USDOT said Monday it will vigorously defend our rule protecting people from hidden junk fees and ensuring travelers can see the full price of a flight before they purchase a ticket, reuters reports.

Some of the additional fees include higher fees for checked baggage if not paid in advance in addition to major airlines boosting the fees being charged. Statistics show that U.S. airlines collected around $6.8 billion just in baggage fees. These fees are reported to be a bit lower in 2023, coming to a grand total of $5.5 billion. It appears that the ruling on automatic pushbacks has not been challenged separately yet.

China has escalated the ongoing U.S.-China trade conflict by instructing its domestic airlines to stop accepting new deliveries of Boeing aircraft. This significant move follows the United States’ imposition of hefty tariffs on Chinese goods. In response, China slapped 125% tariffs on U.S. exports. The new restrictions, as reported by Bloomberg, include halting the purchase of Boeing aircraft and any associated U.S. aerospace parts or equipment.

This decision severely impacts Boeing, one of America’s largest exporters. Boeing has long viewed China as a crucial growth market, especially as the Chinese aviation industry expands. The halt affects the delivery of Boeing 737 MAX jets, with approximately ten aircraft ready for delivery. However, the government may still allow planes for which payment and delivery documents were completed before the tariffs took effect, on a case-by-case basis.

The move comes amid escalating tensions between the two economic superpowers. U.S. President Donald Trump increased tariffs on Chinese imports up to 145%, prompting China to retaliate with its own tariffs. This situation has forced companies like Boeing to grapple with rising costs and logistical uncertainties. Boeing’s stock has already taken a significant hit, with shares falling 7% since the beginning of the year.

The Chinese government is also considering how to assist domestic airlines that lease Boeing jets, as these carriers face rising costs due to the tariffs. While the decision poses a setback for Boeing, it could benefit Airbus, which has a more established presence in China. As the dispute evolves, the global aviation industry remains uncertain about the long-term effects of these trade restrictions.

In addition to halting aircraft deliveries, China has tightened its control over the supply of critical aerospace components, complicating the situation for both U.S. and Chinese manufacturers.

Major U.S Airlines Pushback Against New USDOT Ruling, Clashing with Biden Administration!

Major Clash Between Biden Administration and Air Carriers Over New Ruling

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