Allegiant and Spirit Airlines are well known for offering cheap fares, particularly cheap airplane tickets and cheap vacation packages. They are equally well known for imposing innovative fees that significantly increase the cost of flying for passengers unfamiliar with their fees.
These two low price airlines are challenging portions of the Department of Transportation (DOT) new consumer protection rules, requesting the U.S. Court of Appeals find that the DOT exceeded its legal authority in imposing a mandatory refund rule and other new requirements on airlines.
Both airlines rely heavily on nonrefundable fares and require full payment at the time of reservation claiming this is necessary to keep their prices low. Under DOTs new rule, starting August 23rd all airlines will be required to allow passengers to hold a reservation for 24 hours without payment. Also passengers will be allowed to cancel a reservation within 24 hours without penalty so long as the reservation is made within a week of departure.
Allegiant responded to the new rule in its legal filing saying that DOT does not have legal authority to mandate that a refund be made when a purchased ticket is cancelled unilaterally by the customers, for reasons unrelated to any delay or cancellation by the carrier.
Both airlines are also fighting the DOT decision to reverse its previous policy on airlines advertising price, which allows some taxes and government fees to be stated separately from the base fare.
Starting in October airlines will be required to include in their advertised prices all taxes, fees and mandatory service charges, whether imposed by the government, airlines, or intermediaries.
The two airlines have also come out against a new rule which spells out specific requirements for disclosure of ancillary fees on websites and in e-ticket confirmations, plus a provision that forbids airlines from increasing the price of air travel after a ticket has been purchased.
Allegiant claims that some of the DOT new rules are anti-consumer because they increase airline costs which will in turn cause ticket prices to be raised. www.cheapfares.com