U.S. Airlines Challenge Key DOT Rulings Under Biden Administration

Published on March 21, 2025

By: Paramita Sarkar

Several U.S. airlines are actively challenging rulings issued by the U.S. Department of Transportation (DOT) under the Biden administration, marking a significant legal confrontation.

These challenges encompass various regulatory decisions, including new rules on ancillary fee disclosure, wheelchair accommodations, and slot allocations at Ronald Reagan Washington National Airport (DCA).

Ancillary Fee Disclosure Rule Faces Legal Pushback

One of the most contentious regulations concerns the disclosure of ancillary fees.

A rule set to take effect in 2024 mandates airlines to provide “clear and conspicuous” disclosure of these fees at the start of the itinerary search process. However, U.S. airlines, including Alaska Airlines, American Airlines, Delta, JetBlue, United, and Spirit, argue that the rule is costly, unnecessary, and potentially disruptive to their operations.

Airlines for America (A4A), a major industry association, contends that complying with the rule would require airlines to spend millions of dollars and that no substantial consumer benefit has been demonstrated. The petitioners are seeking to have the rule vacated or amended, asserting that it places an undue burden on airlines without achieving meaningful benefits for passengers.

The legal challenge gained momentum when a panel of judges in January 2025 issued a stay on the rule and remanded it back to DOT, citing procedural issues. The court’s decision has left airlines with uncertainties about the next steps and has led to accusations of inconsistency in DOT’s actions.

The airlines maintain that the rule would fundamentally alter customer interactions at great financial cost, without sufficient justification.

Wheelchair Accessibility Regulation Under Scrutiny

Another rule under fire is the “Ensuring Safe Accommodations for Air Travelers with Disabilities Using Wheelchairs” regulation. This rule, which clarifies the responsibilities of airlines regarding the handling of mobility devices, has drawn criticism from several airlines, including A4A, American, Delta, JetBlue, and United.

The airlines argue that some provisions of the regulation exceed DOT’s statutory authority and are asking the 5th Circuit Court to overturn the rule, either in part or in whole.

The regulation was intended to codify protections for air travelers with disabilities, but its challengers believe that some aspects could be problematic for carriers to implement.

DCA Slot Awards Spark Controversy

A separate legal battle concerns the allocation of beyond-perimeter slots at DCA.

In December 2024, the DOT finalized slot awards made available through the 2024 FAA Reauthorization Act. However, several airlines, including Frontier and Spirit, have voiced objections to the selection process.

The new rules state that only airlines with fewer than 40 slots at DCA would qualify for certain slot exemptions, with Alaska Airlines being awarded the limited incumbent slot despite its codeshare agreement with American Airlines.

Spirit Airlines, which has actively joined a petition for review, argues that Alaska’s codeshare agreement with American disqualifies it from being considered a limited incumbent.

Spirit claims that this decision undermines competition by favoring larger carriers over smaller ones. Spirit is now asking the court to vacate the exemption and allow for direct competition with Frontier.

This legal battle is ongoing, with Frontier contesting Spirit’s involvement, and a final response is expected by April 7, 2025.

Conclusion

The legal challenges posed by U.S. airlines to various DOT rulings underscore the tension between regulatory oversight and the airline industry’s operational flexibility.

These battles over fee disclosure, disability accommodations, and slot allocation are not just about compliance—they also reflect deeper concerns about market competition and the financial burdens placed on carriers. As these cases progress through the courts, the outcomes could have far-reaching implications for both the airline industry and its passengers.