Aviation

Major US airlines sue Biden administration over junk fee rule

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A clash is brewing between US airlines and the Biden administration over a new rule aimed at shedding light on the often opaque world of airline fees.

The rule, announced by the US Transportation Department, requires airlines to be more transparent about charges such as baggage fees and reservation changes. However, major carriers including American, Delta, and United, alongside their industry trade group, are pushing back against the regulation.

They argue that the increased transparency could overwhelm consumers with information and complicate the ticket-buying process.

The Transportation Department, on the other hand, is staunchly defending the rule, emphasizing its role in protecting consumers from what it calls “hidden junk fees.” The department estimates that the rule could save consumers over $500 million annually.

The dispute lies in the requirement for airlines and travel agents to disclose fees upfront, prominently displaying them on the first webpage where flight prices are quoted.

While the Biden administration sees this as a step towards empowering consumers, airlines fear it will confuse travelers and disrupt their business models. Despite the opposition from some airlines, Southwest Airlines expressed support for the principle of transparent pricing.

While the rule may have minimal impact on Southwest due to its existing policies of allowing free checked bags and no extra fees for reservation changes, the airline emphasizes the importance of clear and consistent fee disclosure for informed consumer decision-making.

Aviation

Aeroflot Buys Used Planes for Spare Parts Amid Sanctions

In the face of ongoing Western sanctions that have severely impacted Russia’s aviation industry, Aeroflot, the country’s largest airline, has devised a strategic plan to bolster its fleet’s spare parts inventory.

The airline is set to acquire five Boeing 737-800BCF freighters from Atran Airlines, a move that will allow it to dismantle the aircraft for critical components. The planes, which will be transferred to Aeroflot’s low-cost subsidiary Pobeda, will not be converted into passenger jets but instead will be stripped for valuable parts to support existing operations.

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Aeroflot’s plan to purchase these Boeing 737-800BCF freighters comes as part of a broader strategy to mitigate the effects of Western sanctions, which have crippled the Russian aviation sector. With the sanctions restricting access to essential aircraft parts and spare components, Aeroflot is exploring alternative ways to maintain and repair its fleet.

Instead of converting the freighters from cargo to passenger planes, a process deemed “unreasonably expensive” under current sanctions, the airline intends to focus on extracting high-value components such as engines, landing gear, avionics, and other essential systems.

The deal will be structured in a way that allows Aeroflot to indirectly purchase the freighters through an insurance settlement with the aircraft’s lessor, AerCap.

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The Russian government’s insurance company will reimburse the aircraft’s value, and the planes will then be leased back to local operators. This method circumvents some of the restrictions imposed by international sanctions while ensuring that the airline gains access to the necessary components to support its fleet.

By dismantling the aircraft for spare parts, Aeroflot aims to secure critical resources for the ongoing maintenance of its existing fleet. Components from the Boeing 737-800BCF freighters, such as engines and avionics, are expected to be reused in other aircraft within Aeroflot’s network, ensuring that the airline can keep its operations running smoothly