International Air Transport Association Warns of Higher Ticket Prices Due to Strict DOT Regulations
The International Air Transport Association (IATA) criticizes new DOT rules, warning of higher airfares due to mandatory refunds and reduced price competition.
The International Air Transport Association (IATA) has expressed its dissatisfaction with two expansive consumer protection regulations recently announced by the U.S. Department of Transportation (DOT), arguing that these rules significantly overstep the DOT’s regulatory authority over the deregulated aviation sector.
The “Refunds and Other Consumer Protection Rule” mandates that airlines must issue automatic refunds for any flight delays or cancellations, regardless of the reason behind the disruption.
Additionally, the “Enhancing Transparency of Airline Ancillary Fees Rule” complicates online booking processes and diminishes competitive pricing for optional airline services.
These blanket regulations regarding passenger services are expected to increase operational costs for airlines, which will likely result in higher fares for consumers.
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