Agency calls for compensation, rebooking and expenses

The U.S. Department of Transportation announced a rulemaking that would require airlines to pay passengers cash compensation, rebook them for free on the next available flight, and cover meals, overnight lodging and related transportation expenses when a disruption is airline-caused, such as a mechanical issue or an IT airline system breakdown. The agency is seeking public comment on the proposed rules.

Pete Buttigieg, secretary of transportation, said: “This action we’re announcing is another step forward into a better era for commercial air travel — where the flying public is better protected and passengers aren’t expected to bear the cost of disruptions caused by airlines.”

Canada, Brazil, the European Union, the UK and other countries have adopted consumer protections that compensate passengers and provide services when an airline causes a significant delay, according to the DOT. One study, according to the agency,  found that the European Union’s compensation and service requirements reduced the likelihood and duration of flight delays.

The proposed rules include:

• Compensation:  DOT is considering a tiered approach where compensation could range from $200-$300 for domestic delays of at least three hours but less than six; $375-$525 for delays of at least six hours but less than nine; and $750-$775 for delays of nine hours or more. 
• Rebooking:  The department is considering requiring airlines to offer free rebooking when the passenger’s flight is canceled; their departure is delayed three hours or more domestically or six hours or more internationally; or if a delay results in a missed connection. DOT is considering requiring rebooking on the next available flight operated by the airline or its branded codeshare partners, and if flights on those airlines are not available within 24 hours, then on any carrier with which the airline has a commercial agreement to transport the airline’s passengers.   
   
  * Expenses:  DOT is considering requiring airlines to provide meals, overnight lodging and transportation to and from lodging for stranded passengers and establishing standards regarding what must be covered as part of each service, including how often it must be provided during lengthy disruptions.

Airlines for America (A4A), the industry trade group, said in a statement said that “mandating additional cash compensation — beyond what airlines already provide — will drive up ticket prices, make air travel less accessible for price-sensitive travelers and negatively impact carrier operations.” 

A4A noted that carriers already provide automatic refunds for passengers who choose not to be rebooked, regardless of whether the cancellation or significant delay is within the carrier’s control, and provide reimbursements for food, transportation and lodging for significant controllable delays.

Instead, A4A urged the Biden administration to “solve for the air traffic controller shortage and outdated [Federal Aviation Administration] infrastructure that is impacting operations and customers today.”

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