The United States Department of Transportation is making a push for airlines to pay passengers in the event of delays.
Earlier today, the United States Department of Transportation (USDOT) proposed a new rule that would require airlines in the US to compensate passengers when flights are delayed.
Currently, there is no compensation system in place in the US. A major union representing airline personnel has already come out against the proposed rule.
The DOT proposed that passengers be compensated with cash if a flight is delayed due to an airline fault, such as maintenance issues or IT system failures.
The amount of compensation would depend on the length of the delay. The rates proposed are:
- 3-6 hour delay: $200-300
- 6-9 hour delay: $375-525
- 9+ hours: $750-775
The DOT announced that it is evaluating whether smaller airlines should pay less and whether passengers should be compensated when they are notified one or two weeks in advance of the travel disruption.
Two more things have been proposed. The first is that airlines be required to rebook passengers at no cost on the next available flight, on that airline or its codeshare partners.
Rebooking would be required in the event of cancelation or delays longer than three hours for domestic flights, six hours for international flights, or a delay that results in a missed connection.
Second, the DOT is considering requiring airlines to provide meals, lodging, and transportation in the event of disruptions. The frequency of coverage for things like meals would still need to be determined by the DOT.
Today began a 60 day period during which the DOT seeks public comment on the proposed ruling. Because of the timing of the process, the 60-day period will conclude after President Donald Trump is reinaugurated as president.
An administration change will bring about a shift in priorities and President Trump has made it clear that he is against more regulation.
According to Reuters, Airlines for America has come out against the proposed ruling, saying,
“Mandating additional cash compensation - beyond what airlines already provide - will drive up ticket prices. This proposal is simply one in a long string of ill-conceived and rushed rules from an administration intent on reregulating the US airline industry.”
Current Transportation Secretary Pete Buttigieg believes it is reasonable to be compensated. Buttigieg argued that rather than making things more difficult for airlines, it would encourage them to do more. He added that it is expected that airlines will fight back.
The Biden administration has come down hard on the airline industry in the last four years.
Under Buttigieg, the DOT implemented a dashboard that shows passengers what airlines will and will not cover in the event of disruptions.
Before the creation of the dashboard, many airlines’ policies were not clear and the DOT forced their hand.
Now, ten major US airlines have committed to rebooking passengers at no additional cost.
These ten airlines have also promised to cover the cost of meals when flights are disrupted due to airline issues. Nine of those ten will provide lodging and transportation.
The DOT noted that although airlines have made their commitments, there are no regulations at the moment.
This would allow airlines to change course on their customer service commitments at their discretion, and it is often up to the airlines to determine when they are responsible for a flight delay or cancellation.
