On April 1, 2013, the U.S. Supreme Court declined to hear a challenge by three U.S. airlines to DOT’s rule requiring that all fees and taxes be included in advertised airfares.  The “rule” is actually DOT’s most recent interpretation of 14 CFR Section 399.84, the “full fare advertising rule,” which governs the advertising of fares by both carriers and ticket agents.

Prior to January 26, 2012, for enforcement purposes, DOT interpreted Section 399.84 as allowing for taxes and government-imposed fees collected by carriers and ticket agents (such as passenger facility charges and departure taxes) to be stated separately from base fares in advertisements.   Ticket agent and carrier-imposed fees, however, (i.e. surcharges for fuel or insurance) were required to be included in the advertised fare.   (See a DOT Order dated December 28, 2012, discussing the restrictions under DOT’s prior interpretation of the rule).

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For many years U.S. air carriers have argued that Italy’s two-tiered airport user fees are discriminatory.  Italy’s airports charge lower landing and take-off fees for intra-EU flights, while fees for extra-EU flights (those going to or from Italy via a foreign location) are much higher.  Both DOT and the U.S. State Department have argued to the European Union (and directly to Italian authorities) that these different fees discriminate against U.S. carriers and violate the user charges provision (Article 12) of the U.S.-EU Air Transport Agreement (“the Agreement”).   Italy, however, has steadfastly refused to lower the fees.  The EU recently required the Italian government to justify the higher fees or eliminate them, but resolution of the issue from the EU side could take many months.

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Cozen O’Connor aviation attorneys Mark Atwood and Allan Mendelsohn were selected by the Global Legal Group to provide an overview of U.S. aviation law in the International Comparative Legal Guide to Aviation Law 2013. The Global Legal Group (GLG) publishes cross-border summaries of law in several different practice areas. The publication is the first aviation law summary offered by the GLG, and provides an overview of the aviation laws in 27 countries, including the U.S., Canada, Germany, Mexico, and the United Kingdom, among others. We believe that this guide will prove an invaluable reference for both aviation attorneys and the airline industry, and we look forward to watching the growth of this publication in the years to come.