Frequent flyer fees

Several airlines, including American, Delta, and United, convinced a federal court on July 29 to temporarily block the U.S. Department of Transportation’s plan to change how airlines disclose fees and issue refunds.

The rules, announced in April and taking effect incrementally, would have required upfront disclosure of things like baggage fees and reservation changes. They also would have required airlines to provide timely cash refunds for canceled flights, services customers paid for but didn’t receive (like onboard Wi-Fi), and baggage delayed more than 12 hours domestically or 25 hours internationally. Under existing U.S. rules, passengers can get a refund if bags are lost, but not when delayed.

The airlines object to the changes, arguing the new rules could confuse customers and cost millions of dollars to implement. But judges for the 5th U.S. Circuit Court of Appeals in Louisiana found the Transportation Department likely exceeded its authority by making rules that prescribe specific actions by the airlines rather than simply prohibit illegal activity.

The government will have a chance to defend its proposal again when the court hears upcoming oral arguments. Officials have issued almost $165 million in penalties against airlines for consumer protection violations since 2021.

Amtrak gets the back seat

The U.S. Justice Department sued railroad shipping ­company Norfolk Southern on July 30 for chronically delaying Amtrak trains between New York and New Orleans. Federal law gives passenger trains priority when they pass or travel on freight railroad tracks, but freight-train interference caused 900,000 minutes of delay in 2023, according to Amtrak.

Government lawyers said just 24 percent of Amtrak’s trains were on time on the 1,377-mile Crescent Line last year. In one example in the lawsuit, a passenger train headed to New Orleans was delayed for an hour when Norfolk Southern dispatchers made it travel behind a slow-­moving freight train. Amtrak carries about 30 million passengers annually and is on pace to set a ridership record this year. Some 97 percent of its route-miles are on lines it doesn’t own.

A Norfolk Southern spokesperson said the company is committed to complying with the law and has been working with Amtrak to resolve the on-time problems. —T.V.

Associated Press/Photo by Andy Wong

Huawei’s Beijing bankroll

Chinese telecommunications giant Huawei Technologies recorded its fastest growth in four years in 2023—despite the U.S. and its international allies branding the company a security risk because of its Communist-government ties. Although the U.S. has banned the domestic purchase of Huawei-made equipment and cut the company’s access to semiconductors and government contracts, The Wall Street Journal found that Chinese state support—including more than $1 billion in financial help and tax credits in 2023—boosted Huawei’s growth. —T.V.