New regulations being considered by the Biden administration would mandate that airlines compensate customers for major delays that are under their control.
Described as a step to safeguard travelers who are stuck by airlines, the U.S. Department of Transportation opened the rule-making process for public comment on Thursday.
It aims to set minimum requirements for what airlines must provide to customers in the event of disruptions, such flight cancellations or protracted delays brought on by airline-related events like an IT system failure or mechanical problem.
As part of the new guidelines, airlines would have to pay customers on a tiered basis for delays of at least three hours domestically, $375 to $525 for delays of at least six hours, and $750 to $775 for delays of at least nine hours.
Additionally, the agency is debating whether compensation should be required if a customer is informed a week or two in ahead of the cancellation or severe delay, and whether small airlines should pay less than large ones.
Other suggestions include mandating that airlines reimburse stranded passengers’ meals, overnight accommodations, and associated transit costs, as well as rebooking them on the next available trip at no extra cost.
The public can comment for 60 days.
It comes as airline data provided to DOT shows that in 2022 and 2023, airlines were responsible for more than 60% of domestic flight delays lasting three hours or more.
Additionally, the Congress Government Accountability Office discovered that delays could have impacted over 116 million people and airline cancellations might have impacted over 15 million passengers between July 2021 and April 2022.
According to the news release, there are consumer laws in place in the United Kingdom, the European Union, Canada, and Brazil that allow passengers to receive compensation and services in the event of major delays.
According to one study, aircraft delays were less likely to occur and last longer when the European Union’s compensation and service rules were followed, the DOT noted in a news release.
At the moment, airlines are obligated to reimburse customers for flights that are canceled, but there are no rules governing delays. According to the DOT, a number of airlines are required to offer at least $50 in credits or vouchers for interruptions.
According to the DOT, nine major U.S. carriers have already agreed to provide hotel and associated transportation costs, while ten major carriers have also agreed to rebook stranded passengers at no additional cost and cover meals during airline-caused disruptions.
According to the DOT announcement, airlines are free to alter their customer service pledges at any time, and they frequently have the final say over who bears responsibility for flight delays or cancellations.
A4A carriers are offering automatic refunds if the passenger decides not to be rebooked, regardless of whether the significant delay or cancellation is within the carrier’s control. They are also offering reimbursements for food, transportation, and lodging for significant controllable delays, according to a statement released by Airlines For America, a trade group that represents American Airlines, United, Delta, and other airlines.
According to the group, requiring more monetary compensation will increase ticket costs, limit the number of people who can afford to fly, and have a detrimental effect on airline operations.
The group demanded that the Biden administration concentrate on other issues facing the airline sector, like the infrastructure of the Federal Aviation Administration and the scarcity of air traffic controllers.
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